Kuwaiti logistics giant Agility is exploring the possibility of a dual listing for its subsidiary, Agility Global, on the Saudi Stock Exchange (Tadawul). This move, if finalized, would provide Agility Global's shareholders with access to the two biggest stock markets in the Arab world.
Tarek Sultan, Agility's vice chairman, revealed this development in a recent interview, highlighting the "intriguing option" a dual listing presents. While a final decision is yet to be made, Sultan confirmed that the company is actively investigating the potential of this move. Agility Global only debuted on the Abu Dhabi Securities Exchange (ADX) last month, making a dual listing a relatively quick follow-up.
The consideration of a Tadawul listing comes amid a backdrop of increasing cooperation between the UAE and Saudi Arabia's stock exchanges. The two entities have established well-defined bilateral agreements that streamline the process for companies already listed on the ADX to secure a secondary listing on the Tadawul. This swiftness is a crucial factor for Agility, as highlighted by Sultan.
Agility's potential foray into Tadawul would position them alongside Americana, the leading quick-service restaurant operator in the Middle East and North Africa (MENA) region. Americana successfully completed a dual listing on both the ADX and Tadawul in 2022, raising a substantial $1. 8 billion through its initial public offering (IPO).
Analysts suggest that a dual listing for Agility Global on the Tadawul could prove beneficial for several reasons. Primarily, it would grant the company access to a significantly larger pool of investors in Saudi Arabia, the biggest economy in the Arab world. This expanded investor base could potentially lead to a higher valuation for Agility Global.
Furthermore, a Tadawul listing would enhance Agility Global's visibility within the wider GCC region. This could prove particularly advantageous considering the emphasis Saudi Arabia is placing on developing its logistics sector. The Kingdom's Vision 2030 economic diversification plan prioritizes the development of a robust logistics infrastructure, creating ample growth opportunities for companies like Agility.
The logistics giant has already established a strong presence in Saudi Arabia, and a Tadawul listing would likely solidify its position within the market. Agility currently employs over 22, 000 people across the Middle East, with a significant portion of its workforce based in Saudi Arabia. The company also boasts a vast network of warehouses and distribution centers throughout the Kingdom.
While Agility weighs the potential benefits of a dual listing, some industry experts caution that navigating the regulatory requirements of two separate stock exchanges can pose challenges. However, given the increasing cooperation between the ADX and Tadawul, these hurdles might be less significant than in the past.
Ultimately, the decision to pursue a Tadawul listing will depend on a thorough evaluation by Agility's board of directors. They will likely consider factors such as the potential impact on the company's valuation, investor outreach, and overall strategic objectives in the region. If approved, the dual listing would mark a significant step for Agility, solidifying its presence as a major player within the burgeoning logistics sector of the Arab world.