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Saudi Arabia’s Riyad Bank has reportedly approached JPMorgan Chase & Co for an IPO for its investment banking arm.
Riyad Capital may sell shares as early as mid-2025, Bloomberg reported, to a valuation of $2.5 billion. The size and the timeline for the IPO is still not decided.
Last April, Riyad Bank said its board of directors were mulling the possibility of an IPO of Riyad Capital on the main market of the Saudi Exchange.
“Riyad Bank and Riyad Capital will therefore work together to conduct such an assessment and preparation including determining the size, structure and the other relevant details of the IPO,” the Tadawul-listed bank said at the time.
Saudi Arabia’s $925 billion Public Investment Fund is the largest shareholder in Riyad Bank, holding a 21.75% stake in the kingdom’s third largest lender. The Saudi government also holds a 10.39% stake in Riyad Bank, according to LSEG data.
Analysts say Saudi has a robust IPO pipeline over the next two years, with as many as 56 IPOs expected across a range of sectors.
(Writing by Bindu Rai, editing by Seban Scaria)
