Two million Saudis subscribe to Alinma shares

Riyadh: In the largest ever-initial public offering (IPO) in Saudi Arabia's history, over 2.05 million Saudis have subscribed to Alinma Bank shares by the end of the second subscription day.

The IPO raised about SR 3.91 billion, which makes up 39 per cent of the SR 10.5 billion IPO as of Wednesday evening, according to a joint statement by Samba Capital, the manager of the IPO, and Alinma Bank.

"After two days, the number of subscribers stood at 2,054,000 with the total value of shares purchased reaching approximately SR 3,907 million," the statement said.

A majority of 55 per cent of subscribers used ATMs while some 20 per cent phone banking and 16 percent internet to buy the 199.8 million shares," it said.

Alinma Bank is seeking to sell 1.05 billion shares at SR 10 each in the April 7-16 IPO.

The sale represents 70% of the new bank's capital. The sale is open only to Saudi nationals who will have to buy at least 50 shares each.