Arabian Centres is one of the largest shopping mall operator in Saudi Arabia. It has recently made a move of going public to release major IPO in the market. This process was to be on for five years as means to expand and gain more money. However, the whole move backfired which has shown the hugest loss on Tadawul in a long time.
The start of the IPO share when first launched was a total of 24.34 riyals ($6.49). However, after the setbacks this number has decreased in value reaching a total of 26.1 riyals just after the bourse opened.
Olivier Nougarou which is the CEO of Arabian Centres released an announcement commenting on the news saying, “The IPO will enable us to embark on our strategy for future growth, specifically our ambitious expansion plans to develop eight assets and two expansions within the next five years. We believe that we are well-positioned for the future considering Saudi Arabia’s ongoing economic reforms. One of the vision policy objectives is to improve the quality of life for Saudi citizens and Saudi residents. This includes many entertainment initiatives. One example that directly helps our business is cinemas. We’re launching 15 cinemas across our existing 19 assets and we’ll have more cinemas in our growth assets. Many of these policy objectives allow us to add concepts that in the past we could not add, whether it’s across entertainment, or fine dining.”