Saudi firms get approval for share sale
Riyadh, November 6, 2013
Saudi Arabia's market watchdog has approved share sales by two companies based in the kingdom that will take place before the end of the year, the first such listings since May.
Bawan Company, a Riyadh-based building materials firm with operations in the kingdom, Kuwait, Syria and the UAE, will offer 30 per cent of its shares - equivalent to 15 million shares - to the public between November 27 and December 3, the Capital Markets Authority (CMA) said on Tuesday (November 5).
Astra Food Company will sell 40 per cent of its shares - equivalent to 11 million shares - between December 18 to 24, the CMA also said.
Astra Food is part of the Astra conglomerate, which has interests in agriculture, manufacturing and real estate.
The value of the shares in both sales will be determined by a bookbuilding process involving institutional investors prior to formal offer periods, when retail investors will be allowed to subscribe at a set price.
The CMA's statements did not mention any arranging banks for the sales.-Reuters