Saudi Arabia's Al Rajhi Steel has appointed BNP Paribas as the financial adviser for an initial public offering of its $3 billion steel project north of Jeddah, Middle East Economic Digest said on Tuesday.

The timing of the IPO on the Saudi stock exchange is still unclear, London-based Meed said, but the shares are likely to be priced at 10 riyals ($2.67) each, equivalent to par value in the kingdom.

The new steel complex is situated in King Abdullah Economic City is one of six purpose-built communities which are aimed at attracting investment and add development to the country.

At least one local bank is likely to be appointed to a lead manager role at a future date, one banker told Reuters, to provide the necessary infrastructure required to market an IPO in Saudi Arabia's retail investor-dominated equity markets.-Reuters