Investment

Goldman Sachs to test Saudi rules to limit stock swings post IPO

Bloomberg/Nicky Loh

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The US lender is acting as stabilisation agent for mall owner Arabian Centres, which will start trading this week after completing the Kingdom’s biggest initial public offering (IPO) since 2015.

Sunday 19, May 2019

(Bloomberg) --Goldman Sachs Group will test out Saudi Arabia’s new market rules that aim to limit price swings after share sales.

Arabian Centres raised about SAR 2.47 billion ($659 million) after pricing shares at the bottom end of the range.

Goldman Sachs may sell additional shares or take other actions to support the Arabian Centres shares once they list. According to a statement by Saudi Arabia’s Capital Market Authority (CMA), the mall operator allocated an extra 12.8 million shares or 13.5 per cent of the offering, to the bank.

Saudi Arabia’s market regulator approved the stabilisation rules last year and Arabian Centres is one of the first companies to use them.

Arabian Centres is set to debut amid a bout of volatility in the Gulf as geopolitical tensions and global trade tensions spill over into equity markets. A metric for short-term swings on the main Saudi index jumped last week to the highest level since October.

 

TAGS : Goldman Sachs Group, Saudi stocks, Arabian Centres, IPO, Tadawul, Saudi CMA

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