Saudi scholar forbids subscription to L’Azurde shares

Saudi comparitive fiqh scholar, Abd Al-Aziz Al-Fawzan, has told potential investors that subscribing to L’Azurde Co.’s initial public offering of 3.87 million shares is not permissible as the jewelry maker is using a murabaha sale on a cost-plus basis.

L’Azurde opened its IPO to retail investors on Sunday, June 5.

Riyadh-based L’Azurde was established in 1992 with capital of SAR 18.5 million. It later converted into a closed joint stock company with capital of SAR 200 million.