Middle East Economic Digest reported that Saudi Arabia's Al Rajhi Steel has appointed BNP Paribas as the financial adviser for an initial public offering of its USD 3 billion steel project north of Jeddah.

The timing of the IPO on the Saudi stock exchange is still unclear, but the shares are likely to be priced at SAR 10 each, equivalent to par value in the kingdom.

The new steel complex is situated in King Abdullah Economic City is one of six purpose built communities which are aimed at attracting investment and add development to the country.

One banker told Reuters that at least one local bank is likely to be appointed to a lead manager role at a future date, to provide the necessary infrastructure required to market an IPO in Saudi Arabia's retail investor dominated equity markets.

(Sourced from www.meed.com)