Saudi billionaire family to hire HSBC for health water IPO: sources

Olayan plans to list shares on the local Tadawul stock exchange and a sale could happen as early as next year

(FAYEZ NURELDINE/AFP/Getty Images)

(FAYEZ NURELDINE/AFP/Getty Images)

Saudi Arabia’s billionaire Olayan family, which runs one of the nation’s biggest conglomerates, is planning an initial public offering of its bottled water business in the kingdom, people familiar with the matter said.

Olayan Financing Co, which controls the family’s investments in the Middle East, is working with HSBC Holdings Plc’s local unit on the 30 percent sale of its Health Water Bottling Co, the people said, asking not to be identified as the information is private. Olayan plans to list shares on the local Tadawul stock exchange and a sale could happen as early as next year, the people said.

Health Water distributes brands including Nova mineral water, Holsten non-alcoholic beer and Power Horse energy drink, according to its website. HSBC Saudi Arabia Ltd declined to comment, while Olayan Financing didn’t immediately respond to requests for comment.

The planned bottling IPO comes as the Olayan family, one of the biggest investors in Credit Suisse Group AG, is also considering selling shares in a holding company of about 20 of its units, which could be worth as much as $5 billion, people said this month. The kingdom is trying to transform itself into a financial powerhouse by expanding the local stock market and selling shares of Saudi Arabian Oil Co and the exchange itself.

Olayan previously considered selling shares in Health Water in 2012 and appointed Morgan Stanley as financial adviser, according to a Reuters report at the time.

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