Al Yamamah Steel debuts on Tadawul today

Shares of Al Yamamah Steel will begin trading on the Saudi Stock Exchange (Tadawul) under the code 1304 today with a fluctuation limit of 10 percent.

The stock will be included under the building and construction sector index.

Al Yamamah's listing is the third on the Saudi market this year, after Middle East Healthcare Co. (MEAHCO) in March and Alandalus Property Co. in January.

Including the steel producer, there are now 174 Saudi-listed companies, bringing the number of building and construction firms to 18.

Al Yamamah sold 15.25 million shares in its initial public offering (IPO) at SAR 36 per share. A total of 30 percent of shares were offered to retail investors, while the remaining 70 percent were allocated to institutional investors.

The steel producer’s initial public offering (IPO) was 479 percent oversubscribed by its final day, according to data available on Argaam. It raised SAR 788 million through 800,000 subscribers.

This listing is the fifth in the building and construction sector since 2010. Electrical Industries Co. listed on Tadawul in 2014, and Bawan Co. debuted in 2013. The United Wire Factories Co. and Al Khodari listed in 2011 and 2010, respectively.

Al Yamamah was launched in 1988 in Riyadh with SAR 508 million in capital. It manufactures metal products used in construction, power and telecommunications.

The company also produces rebar through its 72.5 percent owned Riyadh-based subsidiary, Al Yamamah Rebar Co., which has  SAR 300 million in capital.

Major shareholders in Al Yamamah are Rashid Abdulrahman Al-Rashid and Abdul Kadir Al-Muhaidib & Sons, who each own a 16.93 percent stake.