JEDDAH – Saudi Arabia’s Hail Cement Co’s initial public offering of 50 percent of its shares was more than 130 percent oversubscribed by Monday morning – the IPO’s last day, Al-Riyadh daily reports Tuesday citing an executive.
The share allocation will be announced next week and the reimbursement of surplus subscriptions will take place from Oct. 2 to Oct. 5, the paper said, citing Matar Al Zahrani, the cement company’s chief executive, who expected trading on his company’s shares to start in October.
The Kingdom’s Capital Market Authority said in June that it has given its approval to the cement producer to offer 48.95 million of its shares at SR10 ($2.67) each, in an IPO scheduled to run from Sept. 20 to Sept. 26, Al Riyadh reported.
Hail Cement is expected to start production in the first quarter of 2013 at a capacity of 5,000 tons a day. and it’s likely to achieve a profit in the same year, Zahrani was quoted by the daily as saying. – SG/Agencies