NCB’s IPO faces weak interest among Saudis till now

The National Commercial Bank’s initial public offering has faced weak interest among Saudi citizens as yet, possibly impacted by an unfavorable religious opinion (fatwa), informed sources told Argaam.
 

The bank floated 25 percent (500 million shares) of its capital in an IPO as of Sunday of which 300 million shares were dedicated to nationals.

Till the close of business yesterday, individual subscription was around six percent of total offering, with proceeds of SAR 824 million, the sources said.

Saudi Arabia’s supreme fatwa authority delivered a religious opinion maintaining that the IPO non-compliant with sharia, due to the bank’s mainstream conventional business.
 

The IPO will close on November 2, 2014.