Record IPO Seen Fueling $10 Billion Saudi Stock Windfall
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Saudi Arabia’s stock market, coming off its worst month in more than two years, is poised to benefit from a $10 billion windfall following National Commercial Bank’s record share sale.
Investors may pump between $8 billion and $10 billion back into stocks when the lender returns the excess funds it received in subscriptions for the sale, according to Ahmed Badr, chief executive officer and head of MENA equities at Renaissance Capital Ltd. in Dubai. Investors might have borrowed as much as five times their own money to bid in the offering, he said. The bank got requests for $83 billion of shares, 23 times the amount sold to Saudi citizens.