UPDATE 1-Saudi Tadawul Group hires JP Morgan, Citi, NCB Capital for IPO -statement

(Adds context)

DUBAI, April 28 (Reuters) - Saudi Tadawul Group, the owner and operator of the country’s stock market, said on Wednesday it appointed JP Morgan, Citigroup and the securities arm of Saudi National Bank for its initial public offering.

Tadawul said the public share sale will allow it to expand and strengthen its position globally. The deal is part of efforts by Saudi Arabia to diversify its economy.

With a market capitalisation of $2.5 trillion, Tadawul is the Arab world’s largest stock exchange.

Saudi Arabia’s stock exchange has converted itself into a holding company and will be renamed Saudi Tadawul Group ahead of the listing this year, Group Chief Executive Khalid al-Hussan said previously.

The group will have four subsidiaries - its bourse Saudi Exchange, securities clearing and depository businesses and technology services. (Reporting by Hadeel Al Sayegh. Editing by Jane Merriman and Emelia Sithole-Matarise)