Islamic Finance

Saudi grocer Bindawood offers investors chance to cancel bids after loan disclosure


Published 01 Oct,2020 via Bloomberg Markets - Saudi Arabia’s BinDawood Holding Co. is giving institutional investors the chance to amend or cancel their IPO bids after disclosing 284 million riyals ($76 million) in loans to related parties.

Institutional investors will have until Oct. 5 to make changes, BinDawood said in an update to the intial public offering prospectus released Thursday. Under the original timeline, the institutional offering period closed on Sept. 22 and the final allotment should have taken place on Oct. 1. A planned offering to retail investors will now take place from Oct. 8 to Oct. 12.

BinDawood said it lent the money to Amwaj Real Estate Co. and AQimma Hotels Co. between July and September. The loans have since been repaid. Board members Abdulrazzag Dawood BinDawood, Abdulkhaliq Dawood BinDawood, and Khalid Dawood BinDawood have indirect ownership in the two companies.

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tags:

IPO
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Matthew Martin