Rabigh shares debut follows Gulf petchem selloff

By Souhail Karam

RIYADH, Jan 26 (Reuters) - Shares of Saudi-based Rabigh Refining and Petrochemical Co. (PetroRabigh) 2380.SE begin trading on Sunday after a disastrous week for Gulf Arab petrochemical stocks.

State oil company Saudi Aramco and Japan's Sumitomo Chemicals (4005.T: Quote, Profile, Research) own 37.5 percent each of PetroRabigh. They sold the remaining 25 percent this month to Saudi investors in a 4.6 billion riyals ($1.2 billion) initial public offering that was almost four times oversubscribed.

PetroRabigh priced its IPO at 21 riyals per share.

Shares of Saudi companies usually surge on the first day of trading after an IPO, but investors were paring expectations after the events of the last week, said Turki Fadak, member of the Saudi Economic Association.

"Instead of hoping for 55 riyals on the first day, they will be hoping for 40 or 45," he said.

The Saudi market steadied on Saturday after losing 20 percent in the previous five trading days, including a record slide of almost 10 percent on Jan. 22.

Saudi Basic Industries Corp 2010.SE, the world's largest chemical-maker by market value, triggered the selloff by missing fourth quarter earnings forecasts and blaming it on slowing demand for petrochemicals in the United States.

SABIC's stock lost a quarter of its value in five trading days, dragging other petrochemical shares lower. The tumble turned into a rout by midweek when declines in global stock market spread panic among regional investors.