All formalities and procedures required to launch the subscription process for mutual funds to the initial public offering (IPO) of Al Sorayai Trading and Industrial Group have been completed, Mohammed Abdulaziz Aldukheil, executive vice president at Aldukheil Financial Group (AFG), said. Acting as financial adviser, lead manager and book runner for the IPO of Al Sorayai Trading and Industrial Group, AFG said the book building period started Saturday (Jan. 23) and will continue until Wednesday (Jan. 27). Aldukheil added the final IPO price will be determined after the close of the book building period. The price will be included in the final prospectus which will be available on the websites of the Capital Market Authority shortly before the IPO period. The IPO period will start on Monday (Feb. 1) and will continue until Sunday (Feb. 7, 2010). He disclosed that 9 million shares will be available for both mutual funds and the public, representing 30 percent of Al Sorayai's capital. The IPO shares to be allocated to the public comprises maximum of 50 percent of the total shares offered and for the mutual funds will be the shares remaining after public subscription. The 9 million shares will be available to mutual funds as part of the first stage. However, the final stage of allocation will depend on the public demand and will be subject to the approval of the Capital Market Authority.
