Saudi regulator approves six IPOs

SAUDI IPOs: Saudi Steel Pipes Co to kick-off programme of six IPOs, according to stock market regulator. (Getty Images)

Saudi Arabia's stock market regulator said on Sunday it had approved six initial public offerings (IPOs) for the period until October, the first of which will be for Saudi Steel Pipes Co (SSP) this month.

The IPOs will be the first since April when four insurance companies raised 260 million riyals.

SSP, which was founded in 1980 and caters mainly to the oil and gas industry, will offer 16 million shares, or 31.4 percent of its capital, over the June 27 to July 3 period, the Capital Market Authority (CMA) said in statements.

Mouwasat Medical Services Co, set up in 1975 and engaged in the ownership and management of hospitals and pharmacies, will sell 7.5 million shares representing 30 percent of its capital over Aug. 15 to 21, CMA said.

Based in the Eastern province, Mouwasat's clients include state oil major Saudi Aramco, petrochemical group Saudi Basic Industries Corp (SABIC) and contracting firm Saudi Oger, according to its website.

A book-building process will fix the pricing for SSP and Mouwasat's listings.

National Petrochemicals Company (Petrochem) will offer the Saudi public 80 million shares, representing 16.67 percent of its capital, at 10 riyals ($2.67) each over July 18 to 24.

Two state-owned pension funds will each buy 80 million shares in Petrochem in a private placement that will raise 1.6 billion riyals, the CMA said. The remaining 50 percent will be held by Saudi Industrial Investment Group.

Petrochem is building a 21.8 billion riyals polymers complex in the eastern industrial park of Jubail under a 65-35 percent joint venture between SIIG and US Chevron Phillips.

The project is 44 percent complete, SIIG said in a statement. SIIG Managing Director Abdulrahman Alismail told Reuters the complex would start production in 2011.

Three insurance companies will raise a total 192 million riyals ($51.2 million) by selling 19.2 million shares at 10 riyals each over Oct 3 to 9.

Buruj Cooperative Insurance Co and Gulf General Insurance Co will both sell 40 percent of their capital, or 5.2 million and 8 million shares respectively, the CMA said. Alalammya for Cooperative Insurance will sell 6 million shares, or 30 percent of its capital, it added. (Reuters)

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