Record IPO to Fuel $10 Billion Saudi Stock Windfall: Arab Credit - Bloomberg:
"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 (NCB)’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.
“It was such a large IPO, it sucked the liquidity out of the market,” Amer Khan, senior executive officer at Shuaa Asset Management, said by phone from Dubai on Nov. 4. “The impact will be immediate when the liquidity returns,” with banks, retail and consumer stocks likely to benefit, he said."
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