Al Yamamah Steel IPO 153% oversubscribed by fourth day

Al Yamamah Steel’s initial public offering (IPO) was 153.5 percent oversubscribed by its fourth day, according to Riyad Capital, the offering lead manager, financial advisor and underwriter.

A total of 300,980 subscribers injected SAR 252.7 million after buying 7.02 million shares.

Al Yamamah offered 4.57 million shares at SAR 36 each on April 27 to retail investors. The offering will extend until May 3.

Last March, the steel producer obtained the Saudi market regulator’s approval to float 30 percent of its capital, of which 70 percent will be offered to institutional investors and 30 percent will be floated to retail investors.

Riyadh-based Al Yamamah was incorporated in 1988 with SAR 508 million in capital. Major shareholders are Rashid Abdulrahman Al-Rashid and Abdul Kadir Al-Muhaidib & Sons, who each own a 16.93 percent stake in the company.