Saudi Arabian regulator approves Yamamah Steel IPO

 29 Mar 2016 - 0:00

Saudi Arabian regulator approves Yamamah Steel IPO


DUBAI: Saudi Arabia’s Capital Market Authority has approved an initial public offer of shares in Al Yamamah Steel Industries Co, the regulator said on Monday, after severe volatility in the stock market earlier this year disrupted listing plans.

The maker of steel tubes, pipes and other products with plants in Jeddah, Dammam and Yanbu will offer 15.25 million shares representing 30 percent of its capital between April 27 and May 3. Some of the shares will be allocated to institutional investors, the CMA said without giving details.

The Saudi stock index has swung wildly this year in response to low oil prices, but in the last few weeks has regained some strength, permitting IPO activity to resume.

Hospital operator Middle East Healthcare Co, which originally intended to complete an IPO in early February, rescheduled the offer to March. Its shares will begin trading on Tuesday, the CMA said on Monday.

Middle East Healthcare raised 1.77 billion riyals ($471 million) by selling 27.61 million shares or 30 percent of its capital at 64 riyals per share.

(Reporting by Andrew Torchia; editing by Jason Neely)