In a rare instance of a Middle Eastern initial public offering being canceled, the Al Othaim family of Saudi Arabia has decided against selling shares of its mall business.
Abdullah Al Othaim Investment Company decided to cancel the listing of a 30 percent stake on the Saudi stock exchange, according to a statement, without specifying the reason.
Bloomberg News reported in May that the Al Othaim family had delayed the IPO of its mall unit just as it was due to start an investor roadshow for the offering, shortly before the family confirmed the report. The firm said at the time it was rescheduling the listing to select “the best suitable window.”
More family-owned companies have been listed in Saudi Arabia as officials try to deepen their capital markets and shake up traditional ways of doing business. Even though investor appetite for local listings in the kingdom remains strong, a rally in Middle Eastern equities faded over the past month as fears of recessions gripped global markets.
Saudi Arabian stocks briefly erased this year’s gains in June and are down more than 16 per cent from highs in May.
The Al Othaim family was considering seeking about $400m to $500m from the offering in Saudi Arabia, though hadn’t set precise terms of the deal, people familiar said in May. GIB Capital had been advising on the listing.
