Dar Al Balad tests wartime appetite for tech stocks

Dar Al Balad is challenging the prevailing view that 1H 2026 is a write-off for IPOs. The IT services outfit is kicking off the bookbuilding process for its small-cap IPO on Tadawul’s main market, guiding on a narrow price range of SAR 9.25-9.75 per share, according to a bourse filing (pdf). The seller, Dar Al Balad Commercial Company, is offloading a 30% stake (equivalent to 21 mn shares).

Proceeds + market cap: The offering, which consists entirely of secondary shares, will see the firm raise up to SAR 204.75 mn in proceeds — slightly below earlier expectations of a USD 75 mn IPO (SAR 281.31 mn) — valuing the company at SAR 682.5 mn at listing by our math.

The move makes Dar Al Balad the first regional issuer to brave a war-clouded market, despite the predominant sentiment being that fresh paper would only be seen in the back half of the year. Senior investment banker Mustafa Fahim recently told EnterpriseAM that most issuers are retreating to 2H to avoid the valuation haircut caused by spiked risk premiums. Ubhar Capital research head Tahir Abbas also told us that the risk of pulled or weak IPOs is still real even post-ceasefire.

What to watch: If book-building clears at the top of the range by its 30 April close, it will signal that other IPO-hopefuls can still safely tap Saudi markets even in times of geopolitical uncertainty.

REFRESHER- Dar Al Balad received CMA approval in December and is likely racing to list before its six-month approval window expires in June. The company, founded by former Sabic vice chairman Ibrahim Bin Salamah, reported a 2025 revenue of SAR 315 mn (up 30%) and net income of SAR 51 mn.

ADVISORS- AlJazira Capital is quarterbacking the transaction as financial advisor, lead manager, and underwriter. It is also acting as joint bookrunner alongside Emirates NBD. Baker McKenzie is counsel.