Saudi economic city developer to launch IPO

The Economic City is set in Hail, Saudi Arabia (pictured), just 700 kilometres north of Riyadh.

The developer of an "economic city" project in northern Saudi Arabia will sell 30% of its shares to the public next month, Saudi newspaper Okaz reported on Wednesday.

The developer of the Prince Abdul Aziz bin Mousaed Economic City was planning an initial public offering of shares and would have a capital of around 7.5 billion riyals ($2 billion), a partner in the project said last year.

The sale would take place in mid-August and a Spanish company had taken a 30% stake in the project, Okaz said, citing unnamed sources. It did not name the Spanish partner.

The project in Hail, 700 kilometres north of the capital Riyadh, is one of the large developments planned in the world's biggest oil exporter as part of plans to wean the economy off the energy sector.

Rakisa Holding, the lead developer of the economic city, put the value of investments in the project at around $8 billion, including a new airport and industrial and residential areas.

Abdullah al-Rakhis, chairman of Rakisa Holding said in December the IPO would take place in the first quarter.

Saudi investors in the Hail city include real estate developer Tanmiyat, Obeikan Group, Saudi Agricultural Group, Kanoo Group and Abdullatif Group.

Their partners include Kuwait's Agility, Abu Dhabi Investment House and Bahrain's Gulf Finance House.

Print | Email | Discuss this article |

READERS' COMMENTS

View all comments (0)

Have your say

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM