Hail Economic City shares go public in May

The developer of Saudi Arabia's $8 billion Prince Abdul Aziz bin Mousaed Economic City has delayed an initial public offering (IPO) until May due to a Gulf stock market slump, the developer said in comments published on Wednesday.

Saudi Arabia's Al Jazirah newspaper reported that Hail Economic City is offering 750 million shares for sale to the public this May.

Rakisa Holding Co., the developers behind the Economic City in Hail, said in December it would sell a 30% stake in a public offering in the first quarter. However the plan has been delayed due to "the current market situation," according to chairman of the company, Abdullah al-Rakhis.

A number of Gulf Arab companies have delayed IPOs after a Gulf Arab stock market crash last year erased more than 50% of the Saudi bourse's market capitalisation. All but one Gulf Arab stock index have fallen further this year.

Rakisa is leading the consortium developing the project north of Riyadh that will include a new airport as well as industrial and residential areas.

Rakisa also plans to invest SAR4 billion ($1 billion) building a cement factory inside the city, Rakhis said.

According to an Al Bawaba report, Hail Economic City is set to become the largest transportation and logistics hub in the Middle East, and is likely to see a total private sector investment of SAR30 billion (nearly $8 billion) over the next 10 years.

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