Dar Al Majed Real Estate became the latest Saudi company to disappoint on debut with shares closing down 1.2% following its SR1.26bn (US$336m) IPO.

Shares opened below the SR14 issue price at SR13.97 and despite briefly pushing above issue to SR14.43 in the first hour the stock fell back to close at SR13.83.

Across the day nearly 40m shares changed hands, representing 44% of the 90m shares sold at IPO.

BSF Capital ran the deal.

The weak performance comes despite the institutional tranche being covered 107 times, though retail demand was much weaker at 2.8 times for the 20% tranche.

The debut follows Marketing Home Group, which fell 4.9% on debut and is now 19.7% below the SR85 issue price.

Source: IFR