Saudi Arabia’s Al-Othaim family has scrapped plans to issue an initial public offering (IPO) of 30 per cent of its mall business on the Saudi stock exchange’s (Tadawul's) main market.

Abdullah al-Othaim Investment did not specify why the offering has been cancelled.

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Bloomberg reported in May that the IPO plans had been delayed ahead of a planned investor roadshow, with the company later stating it would reschedule the pitch for “the best suitable time”.

Saudi Arabia’s Capital Market Authority approved the IPO plan in March. Al-Othaim Malls, the retail unit of the family business, specialises in the construction, management and operation of shopping malls, centres, cinemas and restaurants.

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The family was reportedly seeking to raise $400m to $500m through the offering.

The cancellation comes despite a surge in the number of family business-backed IPOs in the kingdom over the past year as Riyadh encourages listings to raise the value and contribution of its capital markets.

Riyadh’s IPO push has seen companies such as family-owned Almunajem Foods, Theeb Rent a Car, Alkhorayef Water and Power Technologies and Nahdi Medical debuting on the Tadawul since March 2021.

Khobar-based Retal Urban Development Company announced plans in May to IPO 30 per cent of its share capital on the Tadawul, and Dammam-headquartered Arabian Food & Dairy Factories (Fadeco) said in April it would list 20 per cent of its stock on parallel market Nomu. Retal and Fadeco are both subsidiaries of family-run conglomerates in the kingdom.

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