National Commercial Bank’s IPO will be offered only to individuals at SAR 50-60 a share

Only individuals can participate in the initial public offering of 15 percent of the National Commercial Bank at a suggested price of between SAR 50 to 60 a share, while institutions will be barred from subscribing to the IPO,  people familiar with the process told Argaam.

The IPO is likely to take place in the 4th quarter of this year and the date and details of the transaction will be announced within 3 weeks, they said, adding that there won’t be a book building process.

NCB, Saudi Arabia’s biggest bank by assets, plans to sell 15 percent, or 300 million shares, in an IPO. The Public Pension Agency will get an additional 10 percent stake, or 200 million shares, in the bank.

NCB’s profit rose 15 percent to SAR 4.96 billion, or SAR 2.48 a share, in the 1st half of this year, compared to the previous year.

The lender’s assets increased 20 percent to SAR 436 billion in the same period,  representing more than 20 percent of total assets in Saudi banks. Bank deposits gained 20 percent to SAR 346 billion, while bank loans added 16 percent to SAR 206 billion in the 1st half.