Tadawul Group to repurchase 1.22M shares for incentives

Saudi Tadawul Group Holding Co. shareholders approved a plan to repurchase up to 1.22 million ordinary shares, earmarking them for the company's employee stock incentive program.

The buyback covers roughly 1% of the exchange operator's outstanding shares. It gives Tadawul Group a pool of equity to distribute under the incentive scheme without issuing new stock. That structure avoids the dilution that typically accompanies broad-based employee equity grants.

Tadawul Group operates Saudi Arabia's main stock exchange, along with its clearing and depository arms. The company has used share-based incentives before. The new authorization extends that practice with a specific allotment. Shareholders also formally approved the underlying incentive program at the same meeting, tying the buyback directly to the compensation framework.

The repurchase authorization does not set a deadline or a price range. This open-ended structure gives the company flexibility on timing. For Saudi-listed firms running employee incentive programs, it is common to execute the buyback in tranches as shares are needed for allocation.

The buyback uses existing shares rather than newly issued stock. That choice preserves the current share count for existing holders. The shares will be allocated to employees under the incentive program, which shareholders also voted on.

Tadawul Group is majority-owned by Saudi Arabia's Public Investment Fund. The exchange operator has seen steady trading volumes as the kingdom pushes to attract foreign investment. Employee incentive programs like this one help the company retain talent in a competitive financial sector. The buyback authorization gives it the flexibility to do so without relying on cash payouts.

Saudi Arabia's stock market is the largest in the Middle East, with Tadawul at its core. The buyback, while small relative to the company's market value, reflects a standard practice for listed firms in the region.