Saudi Ground Services Company, a unit of national carrier Saudi Arabian Airlines, has set the price for its 30% initial share sale at 50 riyals ($13.3) per share, a statement from the company's financial adviser said.

The price, set following a book-building process with institutional investors, means the company will raise 2.8 billion riyals ($752 million) from the offer.

The public offer, first announced in 2012, is part of a move to privatize the Saudi airline.

A subscription period for retail investors will run from June 3 to 9, with 22.56 million shares allocated to them out of a total 56.4 million shares, according to the statement from HSBC's Saudi Arabian unit.

The bank added that institutional investors had pledged orders nine times higher than the full amount of shares offered during the book building.

Around 90% of shares allocated to institutions will go to investment funds, and final allocations will be announced after retail subscriptions are complete, the statement said.

Saudi Arabia's stock market regulator has said it will raise the proportion of shares allocated to institutional investors in initial public offers as it aims to reduce volatility in the market.

Source: Reuters