Riyadh – Mubasher: The Saudi Exchange (Tadawul) has launched four new indices in line with its strategy to bolster the Saudi capital market, according to a press release.
The indices are based on the company size and initial public offering (IPO) performance. They provide investors with a wide range of benchmarks to enlarge their investments and capitalise on specific market opportunities.
Tadawul large companies account for 70% of the free float market cap, while medium-sized firms represent 20%. Meanwhile, small entities comprise the remaining 10%.
Furthermore, the Tadawul IPO Index will track the performance of companies listed on the main market within the past five years.
Just like the current Tadawul All Share Index (TASI), the maximum weight of any index constituent will be 15%, ensuring a balanced representation of the entire market.
Mohammed Al Rumaih, CEO of the Saudi Exchange, said: "By introducing size indices that reflect the market's composition, we aim to provide a balanced representation of the market and offer investors a diverse range of investment opportunities.”
“The Tadawul IPO Index will enable investors to participate in the growth potential of new and rapidly expanding companies listed on the main market,” Al Rumaih indicated.
He concluded: “We believe these indices will serve as valuable benchmarks for investment products and will allow both local and foreign investors to access and benefit from our dynamic and growing capital market.”