Saudi Arabia’s Flexible Murabaha Finance (Murna) is seeking to raise up to 312.9 million riyals ($83.4 million) from an initial public offering, despite concerns about market volatility that have prompted some other companies in the kingdom to postpone scheduled share sales.
The non-bank financial company said on Sunday in a statement that it had set the price range for its offering at 13-14.6 riyals per share. Murabaha plans to sell a 30% stake, or 21.4 million shares, and is expected to announce the final offering price on May 21.
The offer comes after Aramco delayed listing its energy business and Public Investment Fund-backed oil and gas exploration firm Addis International Holdings delayed its initial public offering (IPO) for the second half of the year.
This comes as the pace of Saudi initial public offerings, which is usually one of the busiest listing markets in the Gulf, has slowed compared to last year. This year, only $92.55 million was raised from listings in the capital, Riyadh, according to data compiled by Bloomberg and seen by Al Arabiya.net.
Morna provides Sharia-compliant financing to individuals and small and medium-sized enterprises.
Al-Bilad Investment Company acts as the financial advisor, registry manager, and guarantor of the offering.
The book-building period for institutions will extend from May 14 to 18, while the subscription for individual investors will open from May 28 to 29.
