Saudi Arabia’s construction and manufacturing company Al-Khodari will sell individual shares to the public at SR48 ($12.80) each for its forthcoming flotation of a 30 per cent stake from 4-10 October.

“The book-building process has valued Al-Khodari’s shares at SR48 each, which is at the bottom end of the SR48-51 offered range,” a lead manager official said on 28 September according to Reuters. This share price values the company at SR2.04bn ($544m).

Established in 1966, Al-Khodari announced the planned initial public offering (IPO) on 1 July this year. It will float a total of 12.75 million shares on the Saudi Stock Exchange (Tadawul) but only Saudi nationals and Saudi-registered financial firms can buy into the initial public offering (IPO).

Riyadh-based GIB Financial Services, a wholly owned subsidiary of Bahrain’s Gulf International Bank (GIB), has been appointed as financial adviser, lead manager and co-underwriter for the IPO.  

Knowledge Economic City (KEC), one of the kingdom’s six planned economic cities, raised SR1.02bn in the most recent IPO in Saudi Arabia.

It was 165 per cent oversubscribed when it closed on 30 May, making it the country’s largest IPO over the past 10 months. It is expected to be the biggest this year.