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IPO planned for 15% of NCB shares

The state-owned Public Investment Fund will sell its shares in the National Commercial Bank (NCB) worth 25 percent of the bank’s capital, said Finance Minister Ibrahim Al-Assaf.
Higher authorities have approved the sale, which will be carried out in two phases, he said.
PIF will sell 15 percent to citizens through an initial public offering in the first phase and it will allocate 10 percent to the Pension Fund in the second part, said the minister,
He said the Pension Fund’s share would become equal to that of the General Organization for Social Insurance (GOSI).
Al-Assaf said the IPO plan would be presented to the Capital Market Authority in the third quarter of 2014.
“NCB’s board of directors has implemented a comprehensive reform plan, which included restructuring, reduction of expenditures, increasing operational efficiency and strengthening the bank’s financial position,” he said.
Reuters said the share sale will be the Kingdom’s first bank IPO since 2008 and is likely to be a big-ticket deal.
NCB owns 90.71 percent of investment firm NCB Capital and has a 66.27 percent stake in Turkiye Finans Katilim Bankasi, an Islamic bank in Turkey.
Al-Assaf said NCB achieved a net profit of SR7.9 billion in 2013, registering 19.7 percent rise compared to the previous year.
Total deposits in NCB rose by 9.9 percent to SR300 billion compared to 2012, the minister said.
The number of loans given by the bank increased by 15 percent with the total value of these loans amounting to SR187.6 billion.
NCB is one of the oldest commercial banks in Saudi Arabia with a credit rating of A+ given by Fitch and S&P.
NCB owns 90.71 percent of investment firm NCB Capital and has a 66.27 percent stake in Turkiye Finans Katilim Bankasi, an Islamic bank in Turkey.