|21 October, 2019

Saudi banking sector enthusiastic about Saudi Aramco’s IPO - CEO

Riyad Bank is working closely with SAMA to accommodate the offering size

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

REUTERS/Faisal Al Nasser

Riyadh –  The Saudi banking sector is ready and enthusiastic about the expected initial public offering (IPO) of Saudi Aramco, which will be a positive move for the sector, Al Arabiya channel reported, citing Tarek A. Al Sadhan, CEO of Riyad Bank.

Al Sadhan added that Riyad Bank is working closely with the Saudi Arabian Monetary Authority (SAMA) to accommodate the offering size.

The CEO pointed out that providing financing to clients depends on the credit capability of each client after assessment, affirming that banks have enough capacity and liquidity to finance the IPO.

“It is very difficult to determine any percentages with the lack of some information concerning the size and timing of the offering. Deposits will certainly see pressure due to the IPO,” Al Sadhan commented.

Last week, Yasir Al Rumayyan, CEO of Saudi Aramco, said that the IPO will be announced “very soon”.

On Saturday, the state-run company announced delaying the planned IPO until posting its financial results for the third quarter of 2019.

Source: Mubasher

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