Saudi Arabia's Al-Hokair Group, one of the largest entertainment and hospitality firms in the Middle East, is planning an initial public offering on the kingdom's bourse in 2014, two banking sources familiar with the matter said.

Family-owned Al-Hokair, set up in 1965 and backed by Saudi private equity and investment firm Jadwa Investment Co, has appointed Saudi Fransi Capital, the investment banking arm of Banque Saudi Fransi, to arrange the sale, the sources said, speaking on condition of anonymity as the matter is not public.

Al-Hokair and Jadwa were not immediately available for comment. Saudi Fransi Capital could not be reached for comment.

Al-Hokair posted revenues of about 2 billion riyals ($533 million) in 2012 and net profit of about 200 million riyals, the sources said.

Based on a potential valuation of about 13 times its net profit, Al-Hokair could be valued at about $680-$690 million, the sources said.

Companies in Saudi Arabia typically offer 30 percent of their share capital in an IPO which means the company may raise about $200 million in the offering.-Reuters