Electrical Industries Seeks $194 Million From Saudi Share Sale

Electrical Industries Co. plans to raise $194 million from an initial public offering as the Saudi company joins the kingdom’s biggest bank in tapping rebounding investor demand for share sales.

The company, based in the oil-rich country’s Dammam city, plans to sell 13.5 million shares at 54 riyals each ($14.39) according to its prospectus published on the website of Saudi Capital Market Authority. The IPO opens today and ends Nov. 17.

IPOs in Saudi Arabia, home of the Gulf region’s largest stock market, are picking up as the Tadawul All Share Index plans to open to foreign investors next year. 

National Commercial Bank, the kingdom’s biggest bank by assets, raised $6 billion in the Middle East’s largest share sale last month and will make its trading debut tomorrow.

Saudi Arabia, the world’s biggest crude exporter, is finalizing rules to open its bourse to foreign investors next year, as the largest OPEC oil producer pursues a $130 billion spending plan to boost non-energy industries.

The country’s benchmark index has gained 14 percent this year.

Electrical Industries said net proceeds of 709 million riyals from the IPO, excluding offering cost of 20 million riyals, will be paid to its selling shareholders on a pro-rata basis, according to the prospectus.

The company won’t receive any of the proceeds.

Samba Capital is the financial adviser and bookrunner.