- RIYADH: A Saudi-based contractor has cut its initial public offering's retail tranche due to poor demand, highlighting the need to improve the investment culture and transparency in the Arab world's biggest bourse, analysts said.
Al-Khodari and Sons Co. said the retail tranche — accounting for half of its $163.2 million IPO — was 83-percent covered at the end of an Oct 4-10 subscription period, according to a statement late on Monday. Only 342,000 retail investors bought into the IPO, a pale figure compared to previous IPOs attracting millions of Saudis. The contractor wanted to sell the equivalent of 30 percent of its capital or 12.75 million shares at SR48 riyals, a price that was at the bottom of a SR48-SR51 offered range.