Shares in National Commercial Bank (NCB) went on sale on Sunday in Saudi Arabia’s largest-ever initial public offering (IPO), which at SR22.5 billion ($6 billion) is also one of the biggest in the world this year.

The IPO comes ahead of an expected easing next year of foreign investment restrictions in the stock market.

The Tadawul All-Shares Index (TASI) declined by 12 percent last week but was still up 11.9 percent since the start of the year.

On Sunday, the TASI closed 2.39 percent higher at 9,775.32 points. Banking and Financial Services index was up 2.58 percent.

NCB is offering one-quarter of its two billion shares, including 300 million for the public along with another 200 million which will be allocated to the Public Investment Fund.

The offer would be worth $6 billion if all 500 million shares are purchased at the offered price of SR45 each.

Basil Al-Ghalayini, CEO of BMG Financial Group, commented: “With its solid fundamentals and competent management, no doubt that NCB’s share sale is among the top league IPOs, not only in Saudi Arabia, but also globally. Management made a wise decision back in the late 1980s to gradually convert its operations and branches into Shariah-compliant ones.”

He added: “I wish the conversion process was faster to ensure its readiness and complete adherence to the Shariah guidelines by the IPO due date to avoid such a controversy.” 

John Sfakianakis of Ashmore Group said: “The IPO subscription has started which should provide a lot of interest as it’s going to be the largest and the pricing is attractive.”

He said: “Regional markets as well as Saudi equities were sold last week as we faced the largest sell off in a week. Oil has bounced back and global equities have also made a turnaround and Sunday’s rebound was a natural concomitant.”

Another analyst, quoted by the AFP, said it was too early to gauge subscriber interest in the offer.

The IPO runs until Nov. 2, after which the bank’s shares will be traded publicly for the first time.

NCB’s Shariah advisory council on Thursday declared the share offer to be acceptable under Islamic law but Grand Mufti, Sheikh Abdul Aziz Al-Asheikh, said on Friday that the IPO is forbidden under Islam, which bans usury.

According to AFP, columnist Abdullah bin Bakhiet, writing in Saturday’s Al-Riyadh newspaper, dismissed the religious controversy, saying it has accompanied every IPO by a bank in the Kingdom.

He said “some people brew the storm just to minimize the number of subscribers” and guarantee themselves a larger share.

“The NCB’s IPO subscription is considered the largest ever in the Kingdom’s financial market,” the Saudi Press Agency said, announcing the start of the share offer.