RIYADH: Shares in National Commercial Bank went on sale yesterday in Saudi Arabia’s largest-ever initial public offering, which at $6bn is also one of the biggest in the world this year.
The IPO comes despite opposition from the kingdom’s top religious leader and follows a difficult week on Gulf stock markets.
NCB, the last of 12 Saudi banks to go public, is offering one-quarter of its two billion shares, including 300 million for the public along with another 200 million which will be allocated to the state pension agency. The offer would be worth $6bn if all 500 million shares are purchased at the offered price of SR45 ($12) each.
One analyst said it was too early to gauge subscriber interest in the offer, which runs until November 2, after which the bank’s shares will be traded publicly for the first time.
The IPO comes ahead of an expected easing next year of foreign investment restrictions in the country’s Tadawul ALL-Shares Index (TASI). The TASI declined by 12 percent last week. AFP
