Prior to applying to the Saudi Capital Market Awards, we evaluated our listing process through conducting a Listing Readiness Assessment to identify the factors that contributed toward the successful listing of HMG on the Saudi Exchange. This process included working with our IPO financial advisors to identify initiatives that supported the listing and gather data on the listing and post listing performance.

The Listing Readiness Assessment process also involved a development of our equity story as a storyboard for the IPO and investor road-shows and a peer analysis which allowed us to benchmark our corporate strategy, governance and performance against our competitors, and against other listings completed during the year. Once we had all the supporting evidence for our entry, we identified key messages we wanted to communicate, primarily with regards to records achieved at the time of listing including:

• The largest healthcare company in terms of market capitalization, revenue and net income;
• The highest aggregate order book in a book-building process for a private company;
• The highest coverage ratio, the highest number of institutional bidders; and
• The highest volume of bids from international investors

Winning the Most Notable Listing Award was a tremendous achievement and a recognition of HMG’s efforts in engaging with investors prior and post listing. The award served as a signal to the market of our leadership in early investor engagement and our efforts in maintaining proactive engagement with the market. Being recognized by Saudi Exchange as the most notable listing in 2020 has also increased recognition for our brand within and outside of Saudi Arabia.

• Preparation is key – The IPO readiness assessment is key to a successful listing. Starting as early as possible is important to ensure the listing team can conduct a thorough review of the business which, in turn, will result in better engagement with the market. Governance also played a vital role in the success of the IPO, by formulating a clear strategy and having a clear governance manual in place.
• Preparation is key – Collaborating and engaging with internal stakeholders can make a significant difference to the success of a listing. Investors want to learn about all aspects of a business, and stakeholders across the business are key to sourcing the information investors need. Employees will also need to embark on a culture shift from a private to public business; involving them in the listing process can be key to long-term success.
• Develop a clear equity readiness investment case – Marketing the transaction among potential investors is key. To do this successfully companies should develop a clear investment case that communicates the company’s competitive advantages and highlights how the company will create value post listing.

Before we applied to the Saudi Capital Market Awards, we assessed our company’s unique strengths and size in comparison to our listed peers. We then worked with our financial advisors to identify what made our listing so successful and to gather supporting evidence for our entry. Our senior management were confident that our listing met the criteria for the award and approved the submission so that the company could be recognized for an innovative and successful transaction.

Winning the Most Notable Listing Award is a significant achievement for Riyadh Cement Company and is a testament to our commitment to adopting international best practices.

This award signifies our development into a market leader and we will continue to leverage the various initiatives of the Capital Markets Authority to support our growth as a business.

Winning the award will drive innovation and excellence at Riyadh Cement, and it encourages us to continue adopting international best practices so as to meet the expectations of our shareholders, customers and also our broader social responsibilities.

Listing on the Saudi Exchange enhances company performance and business continuity while increasing the confidence of current and potential investors. Therefore, Riyadh Cement Company would give the following tips to companies seeking to list on the Nomu – Parallel Market:

1. Appoint qualified individuals to lead the process who are familiar with the rules and regulations of the Capital Markets Authority, the Saudi Exchange, and the Securities Depository Center (Edaa).
2. Carefully prepare the required documents and study them with the relevant internal and external bodies to ensure the listing process is completed on time.
3. Choose an appropriate financial advisor and communicate with them regularly. This should be in addition to ongoing communication with the senior management around the listing procedures, documents, and forms.

At Al Rajhi Bank, we always aspire to be a strong competitor in all aspects of the banking industry. Winning the inaugural Saudi Capital Market Award for best IR program is a true honor and showcases the great efforts from the management and IR team during the year.

We prepared internally by reviewing the criteria for the award before collecting all the supporting documents and capturing all the activities executed throughout 2020, including regulatory disclosures, management participation at IR events, meetings and conferences attended, COVID-related communications, IR digital enhancements, and efforts related to ESG. Having an established and well organized IR function enabled us to efficiently demonstrate how our approach and activities are aligned with the leading IR practices globally.

Winning the first ever Saudi Capital Market Award will help us to shine a light on the great efforts delivered by the management and IR team during 2020, as well as highlight the importance of the IR function internally and externally. Winning this award will push us to maintain our leadership position in IR, with the continued support of senior management, and continue to harvest the benefits of having a best-in-class IR function.

There have been many changes in the Saudi capital market and the MENA region more broadly. Led by the great efforts of the Capital Market Authority and Saudi Exchange, these changes support the Kingdom’s Vision 2030 and Financial Sector Development Program to develop a diversified and effective financial sector. The inclusion in global and emerging market indices and new listings have resulted in the Saudi Capital Market being among the top 10 Capital Markets globally by market cap. At Al Rajhi Bank, are proud to be the largest weighted stock on the Tadawul All Share Index and MSCI Tadawul 30 Index. In addition, Qualified Foreign Investors have significantly increased their ownership in Saudi listed companies as investment opportunities have been created.

Listed companies must adapt to these changes through improving their communication efforts with different stakeholders in the financial and capital markets. The IR function will play an increasingly critical role in providing the market with the information it needs to make informed investment decisions. An effective IR program will result in a fair valuation, improved stock liquidity, access to capital and a resilient shareholder base.

The main challenges include continuous engagement with all stakeholders externally and internally, being aware of changes in the market and industry and how these will impact the business, providing and updating the investment community with sufficient information through different channels (board report, earnings release, investor and earnings presentation and analysts and investors meetings) and fulfilling regulatory reporting requirements. Moreover, with advancement in the digital world, IROs need to ensure that all communication channels are updated regularly.

The first and most important is to grasp a good understanding of the business strategy and market context in order to convey the desired messages to the investment community. Second, IROs need to be proactive through two-way communication with all stakeholders internally and externally in an effective and efficient way. Lastly, for those just starting their career or IR certification, learning from the leaders in the market locally and globally, engaging with professional communities for investor relations such as MEIRA, and more importantly reading the Saudi Exchange IR toolkit will help them gain a better understanding of IR best practices.