Riyadh, (Business News Report)|| The Saudi Tadawul Holding Group announced an increase in its profits during the past year 2021, driven by the growth of trading services and listing fees.
Saudi Tadawul said that its profits increased by 17% during the year 2021 compared to its profits in the previous year.
The Saudi stock market witnessed strong activity last year in terms of the volume of IPO transactions.
The first financial results of Tadawul, after listing its shares on the Saudi market in December 2021, showed a growth in profits last year by 17.4%, to reach 587.7 million riyals, exceeding the estimates of analysts, who expected profits in the range of 561 million riyals (the dollar is equivalent to 3.75 riyals).
In a statement on Sunday, the Board of Directors of the group recommended distributing cash dividends to shareholders for the fiscal year 2021, at three Saudi riyals per share, equivalent to 30% of the nominal value of the share.
In its statement, the group noted that for foreign shareholders not residing in the Kingdom, cash dividends transferred through the resident financial intermediary, when transferred or credited to his bank account, will be subject to a 5% withholding tax in accordance with the provisions of the income tax system.
The most important results of 2021 came on an annual basis, the operating income rose by 8.01% to reach 1.166 billion riyals, and the operating profit increased 12.64% to 611.83 million riyals.
Revenues from the capital markets sector (trading services and listing fees) grew 7.57% to 489.84 million riyals, and trading services revenues rose 7.13% to 409.36 million riyals as a result of the increase in the daily average value of trading.
Meanwhile, revenues from listing fees increased by 9.88% to reach 80.48 million riyals due to the increase in the number and volume of listings.
Revenues from post-trading services rose by 13.91% to reach 582.97 million riyals. Tadawul collected about 3.8 billion riyals by offering 36 million shares, representing 30% of its capital, for public subscription, at a price of 105 riyals per share.
The total number of institutional and individual investors’ requests for the offering amounted to about 463 billion riyals.
The Saudi stock market experienced several IPOs to obtain liquidity in light of its shortage after the Corona pandemic.