Shaimaa Hefzy

Dar Al Balad Business Solutions, a Saudi company operating in information technology services, plans to raise approximately 204.8 million Saudi riyals ($54.6 million) from an initial public offering of a 30% stake in its shares on the main market of the Saudi Stock Exchange, according to a statement to Tadawul on Monday.

This is the second initial public offering (IPO) in the Saudi market this year. The main market welcomed Saleh Abdulaziz Al-Rashed & Sons Company last February, while Rukn Al-Kisa’i Medical Company decided in March not to proceed with the IPO that was scheduled for the parallel Nomu market amid Iran war tensions.

According to a statement issued by Al-Jazira Financial Markets Company, the financial advisor, subscription manager and underwriter for Dar Al-Balad Business Company, on Monday, the final share price in the offering was set at 9.75 riyals per share, at the upper limit of the price range, which was between 9.25 and 9.75 Saudi riyals per share.

The offering was oversubscribed 66.6 times during the book-building period for the total shares offered, according to the statement.

The company will sell 21 million shares in its initial public offering (IPO), with 30% of the shares allocated to individual investors, subject to sufficient demand. The subscription period for individual investors will run from May 10-14.

Dar Al Balad Business Solutions has been operating in information services for more than 25 years, and has since expanded its activities to include industrial maintenance and waste reduction services. It operates in Saudi Arabia and has branches in Bahrain and Qatar that partially support its operations in the GCC, Middle East and North Africa region, and has plans to expand its services to include artificial intelligence and cybersecurity solutions.

(Prepared by: Shaimaa Hefzy, for contact: zawya.arabic@lseg.com)

#Economic News

To subscribe to our weekly report covering economic and political news developments, register here.