BinDawood said to seek as much as $580m from Saudi IPO

BinDawood Holding Co., one of Saudi Arabia’s largest grocery chains, has set a range of SAR84 to SAR96 ($22-$26) per share for its initial public offering this month, according to two people familiar with the matter.

That would imply a valuation of SAR9.6bn to SAR11bn ($2.6bn to $2.9bn) for the company, which seeks to sell a 20 per cent stake. The price range is expected to be announced on Sunday, the people said.

A spokesman for the company declined to comment.

BinDawood plans to sell 22.86 million shares through a book-building process.

The IPO comes amid a boom in online retail spending and as Saudi Arabia sees more companies listing on the local exchange.

BinDawood, which operates the BinDawood and Danube brands, said first-half profit rose 82 per cent from the year-ago period.

The company is working with Goldman Sachs Group, JPMorgan Chase & Co., GIB Capital, NCB Capital and Moelis & Co. on the IPO.