JEDDAH, Saudi Arabia, March 29 (Reuters) - Saudi automotive group Almutlak Trade and Industries has postponed an initial public offering to the second half of 2011 after becoming involved in new expansion projects, its financial adviser said.
“Once these projects have started operating, it is expected to enhance the value of the company and its shares,” said Faisal Alsayrafy, chief executive of Financial Transaction House, the lead financial adviser for Almutlak group.
The firm had initially planned an IPO for the first quarter of 2010. [ID:nL497552]
Almutlak has units specialising in metals, auto repairs and spare parts. Its tyres unit is the sole agent for Continental CONG.AG tyres in Saudi Arabia, the group’s website said.
Several Saudi companies have unveiled IPO plans as the Saudi bourse is among the best-performing in the Gulf region. But in February, travel agent Al-Tayyar Travel Group put on hold IPO plans due to weak demand.
Almutlak also plans a rights issue, one year after listing, to fund a 1-1.5 billion riyal ($267-$400 million) project. That project may also be funded through bank debt and other financial instruments, Alsayrafy said. (Reporting by Asma Alsharif; Editing by Firouz Sedarat) ($1 = 3.750 riyals)