JEDDAH, 19 February 2006 — The Saudi Capital Market Authority (CMA) will allow trade of the Yanbu National Petrochemicals Company’s (YANSAB) shares 45 minutes before the official opening of the Saudi stock market in the morning session and half an hour before the evening session starting from tomorrow until Thursday.
The CMA, anticipating a rush on YANSAB’s stocks, has moved forward the company’s listing in order to avoid a logjam of the network. Nearly half of the Saudi population who participated in YANSAB’s initial public offering (IPO), which was the largest IPO in the Kingdom, are eyeing the listing of YANSAB — the 78th company on the Tadawul All-Share Index (TASI). The 7.9 million Saudis who pumped SR5.9 billion in YANSAB’s IPO are looking to at least quadruple their initial investments of SR50 per share.
YANSAB’s shares are expected to boost the trading volume in the Saudi stock market, which is over-capitalized with petrodollars revenues and inflow of capital. The shares are entering the market a day after the market closed trading at a new milestone of 19,916.59 points, only 83.41 points away from the 20,000 barrier.
The YANSAB’s shares are expected to be in demand on the first day of its listing, largely due to heavy market speculations, and driving the share price high from the early hours of trading. With the expected rise of YANSAB share prices, pressure on other inflated shares will likely be eased, with investors and speculators alike having an additional 39.4 million new shares to trade.
