Saudi Small Caps Set to Test IPO Market Amid Valuation Scrutiny

A clutch of smaller companies is braving Saudi Arabia’s subdued equity market with share sales, but their success will hinge on pricing discipline as investors grow more selective.

Car-rental operator Cherry Trading Co. is set to raise 252 million riyals ($67 million) in its initial public offering, Almasar Alshamil Education Co. has drawn demand for all shares on offer for its $160 million listing, while refrigeration firm Consolidated Grünenfelder Saady Holding Co. is preparing to raise about $80 million. At least four others, including real-estate developer Al Ramz, have approval to list.