Arabian Contracting says IPO cancelled on dispute over ownership

A complaint filed against Arabian Contracting Services Co. relating to its ownership structure led to the cancellation of its planned initial public offering (IPO), the company said in a statement.

The complaint, which the company said was made by Mansour Abdulrahman Salem Al-Awad, indicated that the company was not in fact owned by Abdulelah Alkhereiji’s family. 

Abdullah Alkhereiji, the company’s vice president, refuted the claim and called it “malicious and baseless.” He added that a similar complaint that had been previously filed by Al-Awad to the ministry of industry in Riyadh was rejected due to lack of evidence.

Arabian Contracting said it would float its shares once the complaint, which was submitted to the ministry of commerce & industry (MOCI) in Jeddah, is settled.

Argaam reported on Wednesday that the Saudi Capital Market Authority (CMA) agreed to cancel the offering, based on a request from the company.

The contractor was planning to offer 30 percent of its capital, or 16.5 million shares.