Saudi Arabia’s NCB Seen Surging After IPO Is Discounted - Bloomberg

Saudi Arabia’s NCB Seen Surging After IPO Is Discounted - Bloomberg:



"Investors in the $6 billion initial public offering of Saudi Arabia’s National Commercial Bank (NCB) may see the shares surge after the government discounted the offer.



The bank closed the sale of 300 million shares priced at 45 riyals each to Saudi Arabian retail investors on Nov. 2, with trading to start tomorrow. The government typically sells stakes in state-owned companies to the public at below market value as part of efforts to redistribute the country’s wealth.



“Most IPOs in Saudi Arabia are sold at a discount, and in this case it was quite a deep discount,” Asim Bukhtiar, a vice president and head of research at Riyad Capital, said by phone from the Saudi capital. “NCB shares could up end up rising to between 80 to 85 riyals, so investors should do very well.”"



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