Al-Hokair Group’s IPO oversubscribed by 329 percent

Saudi Fransi Capital, the financial advisor, lead manager and underwriter of the initial public offering (IPO) of Abdul-Mohsen Al-Hokair Tourism and Development Group  said the number of subscribers to Al-Hokair’s  shares increased to 1.69 million by the last day of the initial public offering, the shares were oversubscribed by 329 percent and SAR 1367.1mn were raised.

4 shares were allocated to each investor and issuer surplus is to be repaid to investors no later than Tuesday June 10^th, 2014.

According to data available by Argaam; Abdulmohsen al-Hokair Group for Tourism and Development sold 16.5 million shares, or 30 percent of the company, in an initial public offering from May 28 to June 3 2014.

Saudi retail investors could buy up to 8.25 million shares or 50 percent of the total shares offered. Offering price is determined at SAR 50 per share through book building process.