2005 News Story

Almarai dairy company IPO oversubscribed

Prince Sultan bin Muhammad bin Saud Al-Kabeer, Chairman of the Almarai company for dairy and food products, announced yesterday that its ten-day Initial Public Offering (IPO), which closed July 13, had been oversubscribed by a factor of four, and had reached SR9.23 billion [U.S.$2.46 billion]. Representing thirty percent of the company’s capital, 4.5 million shares valued at SR2.3 billion [$0.6 billion], were on offer, at SR512 [$136] each; over 1.6 million Saudi citizens made purchases. A minimum of 10 shares and a ceiling of 5,000 was set per investor. Similar IPOs by Saudi companies have also been highly oversubscribed.