Saudi Arabia’s United Electronics Company (Extra) closed its initial public offering (IPO) on 11 December. The IPO was oversubscribed twice and raised SR396m ($105m). The money will be used to fund the company’s regional expansion.

It was the second major IPO on Saudi Stock Exchange (Tadawul) this year. The electronics retailer issued 7.2 million shares at SR55 each following the completion of a book-building process, representing 30 per cent of the company’s share capital.

The IPO was open for subscription on 5 December and was only open to Saudi Arabian nationals. Institutional investors were covered by 1.11 per cent.

UK based HSBC served as the financial advisor, lead manager and lead underwriter for the IPO.

Extra was founded in 2003 and is Saudi Arabia’s largest electronics retailer with and annual turnover of SR2bn from July 2010 to June 2011. It has 22 stores across the country.

The IPO market in Saudi Arabia has slowed down this year. Saudi Integrated Telecom Company was the first to go public, raising $287m. Hail Cement Company and United Wire Factories Company both listed in the third quarter this year raising $13m and $12m respectively. Despite the slowdown, Saudi Arabia remains the most active market for IPOs in the Middle East this year.