Saudi property company Alandalus to launch IPO

JEDDAH: Saudi Arabiaís Alandalus Property Co. will launch an initial public offering (IPO) in mid-December, the market regulator said in a statement, the first flotation since the Kingdom allowed direct foreign share ownership.
Alandalus aims to sell 21 million shares, representing 30 percent of its share capital, the statement said.
An unspecified portion of these shares will be allocated to institutional investors via a book-building process.
The remainder will then be offered to the public from Dec. 17 to Dec. 23 inclusive.
Alandalus is based in Riyadh, was incorporated in 2006 and is involved in commercial real estate development and investment, its website says.
Saudi Arabia has permitted direct foreign share ownership since mid-June.
The Tadawul All-Share Index (TASI) is down 13.5 percent this year and hit a 35-month low last week as the sustained slump in oil prices hurt earnings in the important petrochemicals sector and Standard & Poor’s downgraded the Kingdom’s debt.
On Wednesday, TASI fluctuated narrowly around Tuesday’s close. Saudi Basic Industries rebounded for an eighth straight day, rising 0.5 percent.
Saudi Automotive Services rose 1.5 percent after saying it had repaid early SR20 million ($5.3 million) of a loan from Arab National Bank; the debt had been due in February 2017.
The company said it had paid the debt with internal resources in order to reduce financial costs.