SAUDI ARABIAN PRE AND POST IPO PERFORMANCE

Abstract

The study aims to examination of the performance of Saudi Arabian firms is required as they make the transition from private ownership into public ownership. A sample of 8 Saudi IPOs performance is investigated. A matched pair approach is implemented to compare the pre and post IPOS performance. The result indicated that Saudi IPOs exhibit a significant decline in the productivity after the IPO as compared to the pre-IPO level. The post IPO compared to the pre-IPO level was measured by profitability ratios: the return on assets (ROA) and return on sales (ROS).