Saudi Arabia’s financial regulator has approved the initial public offering of Hail Cement this September, which will make the company the 10th listed supplier of the material in the kingdom.
The Capital Markets Authority yesterday gave the go-ahead for the Jubail-based material supplier to issue 48.59m shares, or 50% of the company, at an initial offer rate of SAR 10 per share.
The total offer value will be SAR 485.9m and the total equity value of the shares on free-float SAR 979m. The issue will open on 20 September and close six days later.
Cement companies are required to list after a certain number of years to give citizens of the country an opportunity to share in the gains of companies that take from the natural resources, such as limestone, analysts noted yesterday.
“There has to be an IPO after a certain number of years ... the idea is to get everyone involved and allow the local public to benefit,” said one analyst at Securities & Investment Company told CW yesterday.