Saudi Company for Tools and Hardware (Saco) plans to sell 30 per cent of the firm in an initial share sale set to launch next month, a statement from the kingdom's market regulator said on Wednesday.

Subscription for the initial public offering will open on April 22 and run until April 28, the Capital Market Authority said in a bourse statement, with 7.2 million shares set to be offered to the public.

A portion of the offering will be reserved for investment funds and professional investors, who can subscribe during a bookbuild process which will take place prior to the offer period and help to set the price of the shares.

Saco, a popular retail and wholesale tools superstore, was founded in 1985 and has 20 retail outlets across 12 cities in the kingdom, according to its website.

It announced in May 2014 it had chosen HSBC's Saudi Arabian unit to advise on the flotation.-Reuters