New Saudi cement firm to raise $73mn via float
Riyadh-based Umm Al Qura cement's shares to be floated this month
Umm Al Qura Cement is to raise the cash by selling 27.5mn shares at SR10 each. The shares are likely to be floated on the market at the end of April, and a prospectus will be published in advance.
The Kingdom of Saudi Arabia is attempting to build capacity in a bid to avoid shortages as it undertakes a series of infrastructure and housing mega-projects across the county.
Last year, Saudi Aarabia's King Abdullah ordered for the short-term import of 10mn tonnes of cement in a bid to stave off a potential shortage and ordered for $800mn (SR3bn) to be set aside for the construction of four new cement plants to boost capacity.
In February, it was announced that another new cement company, Baha Cement Co, will also be set up in Riyadh. Saudi Arabia's minister of commerce and industry Dr Tawfiq bin Fawzzah Al-Rabiah said that half of the shares will be sold to the general public, with the rest retained by the project's partners.