DUBAI: Saudi Arabia’s Al Hokair Group, one of the largest entertainment and hospitality firms in the Middle East, is planning to list on the Riyadh bourse early next year, two banking sources said.
Based on a potential valuation of about 13 times to its net profit, family-owned Al Hokair could be valued at about $680m, the sources said, speaking on condition of anonymity as the matter is not public.
Companies in Saudi Arabia typically offer 30 percent of their share capital in an IPO which means the company, whose hotel operations include Hilton and Holiday Inn hotels in the Middle East, could raise about $200m in the offering.
Saudi Arabia, home to the largest stock market in the Gulf Arab region, is encouraging family-owned groups and diversified businesses in the kingdom to list on its stock market in a bid to reduce the bourse’s reliance on construction, petrochemicals and banking companies.
Set up in 1965, Al Hokair is backed by Saudi private equity and investment firm Jadwa Investment Co. It is not related to Saudi Arabian retailer Fawaz Abdulaziz Alhokair.
Reuters
