The Saudi Stock Exchange, also known as the Tadawul, in Riyadh. Image Credit: File photo

Riyadh: Saudi Arabia’s stock exchange is due to make its trading debut next month after starting the process to sell a 30 per cent stake in an initial public offering, according to its CEO.

"We target to list the company in the first week of December," Khalid Al Hussan said in an interview on Sunday. "The IPO is a continuation of our transformation," he said, adding that the offering should give it a "better exposure and access to investors".

The kingdom's markets regulator last week signed off on Saudi Tadawul Group Holding's offering of 36 million shares. SNB Capital, JPMorgan Chase & Co. and Citigroup Inc. are the IPO's global coordinators and underwriters.

The offering, which may be one of the biggest in the exchange sector since Euronext NV's $1.2 billion listing in 2014, could value the bourse at between $3 billion and $4 billion, people familiar with the matter said last month.

The exchange will offer all shares to institutional investors, with a clawback to retail investors of up to 10 per cent of shares. Al Hussan said IPO subscription for institutions will start on November 21 and for individuals on November 30.

Separately, Al Hussan said the exchange's clearing house was on course to start in early 2022.

"We are also anticipating by the first half of next year the full activation of our clearing house, which should increase the revenue aspects of introducing clearing services to the market," he added.

Tadawul will distribute 70 per cent of earnings as a dividend, unless it's working on growth projects and wants to keep the cash to help fund those, he added.