Ettihad Etisalat share leaps

RIYADH - Shares in Saudi Arabia’s second mobile phone operator Ettihad Etisalat started trading on the kingdom’s stock exchange at 300 riyals ($80) yesterday, six times their subscription price of 50 riyals.

By (Reuters)

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Published: Tue 21 Dec 2004, 10:34 AM

Last updated: Thu 2 Apr 2015, 11:48 AM

The company’s stock was 50 times oversubscribed when it floated 20 million shares in November.

“It’s not surprising that shares began trading at this price,” said Saeed Al Sheikh, chief economist at the National Commercial Bank. “It could rise to between 400 and 500 riyals over the next few months.”

Sheikh said the starting price showed there was great demand for stocks in the kingdom. Shares in state insurer NCCI will be sold for 205 riyals each when subscription opens today. The market expects the offer to be 30 times oversubscribed.

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