Two tranches, two windows
A Saudi IPO is sold first to institutions through book-building, which sets the final price. The individual (retail) tranche then opens for a few days at that price, typically a week or two after institutional pricing. Individuals cannot bid; they subscribe at the fixed price for a number of shares.
Who qualifies for the individual tranche
Eligibility is defined in each prospectus. The usual definition covers Saudi nationals, GCC nationals, and non-Saudi residents holding a valid iqama with a bank account at a receiving agent. Divorced or widowed Saudi women may subscribe on behalf of minor children. Read the Definitions section of the prospectus rather than relying on this list.
The process, step by step
You do not need a separate IPO account; your existing broker portfolio number is the key.
- Hold an active portfolio with a CMA-licensed broker before the window opens
- Subscribe through a receiving agent: usually your bank's app or the broker's own platform
- Pay the full amount up front; the minimum is often 10 shares and the maximum is set per prospectus
- Wait for allocation; oversubscribed deals usually guarantee a minimum lot, then allocate the rest pro rata
- Refunds of unallocated money arrive within a few business days of the allocation notice
- Shares appear in your portfolio shortly before the first trading day
First days of trading
New Main Market listings trade within a ±30% daily limit for the first three days, then revert to the standard ±10%. Nomu listings use ±30% throughout. Large recent floats have often opened near the top of the band on day one, but that is not a rule, and several have traded below issue price within weeks.
Common questions
Next step
Sources
Editorial content for information only, not investment, legal or tax advice. Rules quoted are those published by the Saudi Exchange, the Capital Market Authority, Edaa and the brokers on the date shown; eligibility and fees change, so confirm current terms before acting.