The retail tranche of the initial public offering (IPO) of Saudi Steel Pipe Company (SSP) has been oversubscribed by 150 per cent.

The retail portion, which constitutes 7.65 million shares representing a maximum of 50 per cent of the offering to the public, was oversubscribed within three days of the issue opening, said GIB Financial Services (GIBFS), a subsidiary of Gulf International Bank (GIB).

Acting as financial advisor, lead manager and co-underwriter of the IPO, GIBFS stated that this is the first premium IPO in Saudi Arabia in 2009 and it has been extremely successful.

Institutional investors had already covered the IPO by 120 per cent at the price of SR25 per share. The retail subscription period for the IPO started on June 27 and will continue until July 3.

SSP is considered one of the leading steel pipe manufacturers in the region (galvanized and non-galvanized steel pipes and square and rectangular pipes). The company has a leading market share in Saudi Arabia and has over 28 years of operating experience in the steel pipe industry.

Eng Riyad Al Rabea, vice chairman and managing director of SSP, commented that the shareholders of the company have always been confident about GIB Financial Services’ capability to bring this IPO to a success.

“This is a capital increase IPO and the company will use all the proceeds for expansion of existing production facilities and investments in new plants so as to meet growing demand and also to enhance SSP’s product offering,” he said.

Dr Yahya Alyahya, CEO of Gulf International Bank and chairman of GIBFS, stated that the key behind GIB’s successful track record is its commitment to clients’ interests and requirements. –TradeArabia News Service