SACO IPO 442% oversubscribed by day 6: HSBC

Saudi Company for Tools and Hardware’s (SACO) initial public offering was 442 percent oversubscribed by the sixth day of its IPO, as 780,700 investors subscribed to12.74 million shares , according to HSBC Saudi Arabia, the underwriter and manager of the IPO.

So far, investors have paid SAR 891.8 million, HSBC added.

SACO has started selling 2.88 million shares to retail investors at SAR 70 a share from April 22-28, in the second initial public offering in the Saudi market this year, according to Argaam.

SACO is selling a total of 7.2 million shares, or 30 percent of the retailer. Up to 60 percent of the shares were allocated to funds and institutional investors. It was 1,207 percent oversubscribed, according to Argaam.