Saudi National Commercial Bank to raise SAR 22.5 billion in the country’s biggest IPO

Saudi Arabia’s National Commercial Bank, the country’s biggest lender, is expected to raise SAR 22.5 billion in an initial public offerings that will take place from Oct 19 to November 2.

The lender will sell 500 million shares, or 25 percent of the bank, at SAR 45 a share in the Middle East’s biggest IPO and the world’s second largest this year. Only Saudi investors are allowed to subscribe to the IPO. As many as 300 million shares, or 15 percent of the bank,  will be allocated to individuals and the rest to the kingdom’s Public Pension Fund.

The IPO is the 5th in the Saudi market this year.

Several Saudi senior clerics banned subscription to the bank’s IPO because of what they called non-sharia compliant products, but the effect remain to be seen.