Monday, August 07, 2006

Investment: 10 million Saudis subscribe to economic city IPO

Ten million Saudis have subscribed to the initial public offering of a consortium building a new economic city north of Jeddah. According to the consortium the operation netting 7.18 bln riyals ($1.9 bln).

The 2.55-bln-riyal IPO of Emaar the Economic City (EEC), which is building the $26.6 billion King Abdullah Economic City on the Red Sea coast, was oversubscribed by almost three times, it said in a statement.

The consortium is headed by property giant Emaar Properties, which is majority-owned by the government of Dubai, and prominent Saudi investors.