Saudi Arabia's Riyad Bank said its board of directors is weighing the possibility of doing an IPO and subsequent listing of its subsidiary, Riyad Capital, on the main market of the Saudi Exchange.

"Riyad Bank and Riyad Capital will therefore work together to conduct such an assessment and preparation including determining the size, structure and the other relevant details of the IPO," the Tadawul-listed bank said in a regulatory filing on Thursday.

The potential IPO once approved, will be subject to the relevant regulatory approvals, it added.

Riyad Capital is the investment arm of Riyad Bank and offers asset management, wealth management, investment banking and brokerage services.

The Public Investment Fund, the sovereign wealth fund of Saudi Arabia, holds a 21.75% stake in Riyad Bank. The Saudi government is also significant shareholder with 10.39% stake, according to LSEG data.

(Reporting by Brinda Darasha; editing by Seban Scaria)