Commodities have driven the early summer buzz in international markets, from heated debates over new potential oil price highs and China’s expansion in international mining to merger games at the top of the global mining industry. The mining theme also dominated the month of July in the Middle East through the $2.47 billion initial public offering of the Saudi Arabian Mining Company, better known as Maaden. Reaching the primary market more than two years after the Saudi government first announced its intentions to sell a 50% stake in the company, the Maaden IPO was 2.4 times covered by subscription demand. The amount sought in the offering was the same as in media reports in early 2007 and the allocation of shares was tilted heavily in favor of retail buyers, making the IPO appear as an example of wealth redistribution from Saudi authorities to the citizens and residents eligible for subscribing.
