Saudi Arabia's Alandalus Property Company will launch an initial public offering (IPO) in mid-December, the market regulator said in a statement on Wednesday, the first flotation since the kingdom allowed direct foreign share ownership.

Alandalus aims to sell 21 million shares, representing 30 per cent of its share capital, the statement said.

An unspecified portion of these shares will be allocated to institutional investors via a book-building process. The remainder will then be offered to the public from December 17 to 23 inclusive.

Alandalus is based in Saudi's capital Riyadh, was incorporated in 2006 and is involved in commercial real estate development and investment, its website says.

Saudi Arabia has permitted direct foreign share ownership since mid-June.

The stock index is down 13.5 per cent this year and hit a 35-month low last week as the sustained slump in oil prices hurt earnings in the important petrochemicals sector and Standard & Poor's downgraded the kingdom's debt.-Reuters