Saudi bank's $6 billion IPO ignites religious controversy

[rug]

By Marwa Rashad
RIYADH Tue Oct 14, 2014 10:50am EDT

(Reuters) - Plans by Saudi Arabia's biggest bank for a $6 billion initial public offer of shares, the largest-ever equity sale in the Arab world, have run into religious controversy with some clerics suggesting it violates Islamic principles.

Securities analysts said the controversy was unlikely to sway enough investors to derail the IPO of state-owned National Commercial Bank, which is due to start next week.

"The conflict between religion and the economy in the kingdom has been negative for a long time, but this will not stop ordinary citizens from participating in the IPO," said Mazen al-Sudairi, head of research at al Istithmar Capital in Riyadh.

"It contributes 16 percent of lending activity in the country and it has 435 billion riyals ($116 billion) of assets and 345 billion riyals of deposits...Bank depositors alone could be enough to cover the IPO several times."

http://www.reuters.com/article/2014/10/14/us-nationl-comml-bk-ipo-islam-idUSKCN0I31QG20141014

[edhopper]

1. Their wealth or their religion

I wonder what is more important to the Saudi family?

[cbayer]

2. I would put my money on wealth. I think religion is something of a means

to an end.

[edhopper]

3. True that.