Shares in an affiliate of Japanese insurance giant Tokio Marine & Nichido Fire Insurance Co (8766.T) soared as they listed on the Saudi Arabian stock market on Sunday, showing strong demand for fresh equity among Saudi investors despite the global market slump.
Alinma Tokio Marine 8312.SE traded as high as 100 riyals, a tenfold increase from its initial public offer price of 10 riyals. It was at 76 riyals after an hour of trading, with 5.5 million shares having changed hands in hectic trade.
Many Saudi stocks more than double on listing, because IPO shares are traditionally sold at cheap valuations by international standards. The government encourages IPOs as a way of distributing corporate wealth to its citizens.
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