(Corrects number of listings in penultimate paragraph.)
Dec. 17 (Bloomberg) -- Dallah Healthcare Holding Co., a Saudi Arabian provider of medical services, surged 51 percent on its first day of trading in Riyadh.
The shares soared to 57.5 riyals at the close in the Saudi capital after the initial public offering priced shares at 38 riyals each, according to data compiled by Bloomberg. About 35 million shares were traded today. The stock was the most-traded by volume and value on the benchmark Tadawul All Share Index, which rose 0.3 percent. Dallah sold 14.2 million shares in the offering, according to bourse data.
The listing has appealed to investors “due to its performance and its potential in the future as the company plans to utilize the IPO proceeds to finance its future expansion and growth,” said Mohammed Al-Omran, a financial analyst and president of the Gulf Center for Financial Consultancy, in Riyadh. “The IPO valuation is fairly priced.”
Dallah’s net income rose 20 percent to 113 million riyals ($30 million) in 2011, according to a company prospectus. Sales advanced 12 percent to 527 million riyals.
The IPO of the health-care services provider follows listings in the kingdom this year that included Alinma Tokio Marine Saudi Arabia, Najran Cement Co., City Cement Co., Takween Advanced Industries, Al Tayyar Travel Group, Saudi Enaya Cooperative Insurance Co. and Saudi Airlines Catering Co.
Northern Region Cement Co. will offer a 50 percent stake in an IPO in January, with shares priced at 10 riyals each, the nation’s market regulator said earlier this month.
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