World leader in manufactured housing, Red Sea Housing Services, will officially start trading on the Saudi Tadawul market beginning on Saturday.
The announcement about the Red Sea Housing Services, also the largest production facility of manufactured housing in the Middle East, was made recently by the Capital Market Authority (CMA),according to Arab News.
Trading will begin at 4 p.m. until 6.30 p.m. Trades may be executed using ATM, the Internet or in-person methods. Upon its IPO release two-months-ago, the company was a target of controversy as investors and economic experts alike criticized it for being overpriced at SR58 per share.
The Red Sea Housing launch will coincide with the flotation of the Initial Public Offering (IPO) of Al-Babtain Power and the Telecommunication Company that will offer market capital equal to 30 percent of the company amounting to SR324 million or 8.1 million shares, resulting in concern for some.
“I think it is a mistake on the CMA’s part for making the listing of Red Sea Housing and the IPO of Al-Babtain Power on the same day. I am waiting to see what is next basically and what new chaos is to come from the stock market,” Areef Mansouri, a Saudi investor told Arab News.
Others, such as Mohammed Shumambri, a financial analyst and owner of the Shumambri Investment Company in Jeddah, are more optimistic: “The market capital of Red Sea Housing and that of Al-Babtain, as well, are small resulting in little or no impact to the Tadawul system and in my opinion, there shouldn’t be any confusion at all,” Shumambri stated.
