Saudi Arabian group Al Tayyar Travel is set to raise up to 1.37 billion riyals ($ 365m) selling a 30 per cent stake in a listing in the first week of June, two sources familiar with the matter said yesterday.

The family-owned business group is offering 24m shares to investors at 45-57 riyals, the sources said. The IPO is open to retail investors and expected to close on Sunday.

The institutional part of the share sale has been oversubscribed nearly five times, arranging bank Samba Capital, the investment banking arm of Samba Financial Group, said earlier this week.

"Demand for the IPO has been strong from the institutional side. It has been priced attractively and most bids were at the top end of the range," one person involved in the IPO process said.

Al Tayyar first looked to go public in February 2010, planning to raise 1.2 billion riyals selling 30pc of its shares. Lacklustre market conditions forced the family group to pull the process at the end of the institutional stage, the first time a Saudi IPO had failed to complete after receiving listing approval from the country's regulator.

Renewed investor interest in local markets and ample institutional liquidity was expected to see the firm launch its IPO at the top end of the range this time.

Al Tayyar's first-quarter net income rose more than 20pc, a second source said, adding the firm has paid a dividend of around five riyals in the past couple of years.

IPO activity in the Gulf is showing signs of revival.