By Maqsood Alam

Dec 2 (Reuters) - Most Middle Eastern markets dropped on Monday as investors appeared to have offloaded their positions to invest back into Saudi Aramco's 2222.SE initial public offering (IPO) which was oversubscribed by more than twice the number of shares on offer.

Institutional investors have already put in 144.1 billion riyals ($38.4 billion) worth of bids for Aramco's planned IPO, which is more than double the capital it seeks to raise from institutions, financial advisers for the IPO said on Monday.

Institutional investors still have until Dec. 4 to place orders.

OPEC and its allies plan to deepen oil cuts and have the deal in place so it runs at least until June 2020 as Saudi Arabia wants to deliver a positive surprise to the market before the listing of Saudi Aramco, two sources familiar with the talks said.

Saudi Arabia's benchmark index .TASI closed down 0.9% with Al Rajhi Bank 1120.SE slipping 1% and Saudi Basic Industries 2010.SE shedding 1.9%.

Leejam Sports Company 1830.SE lost 1.1% after the gym network operator proposed a lower dividend for the third quarter compared with the same period last year.

Egypt's blue-chip index EGX.30 dropped 1.7% as most of its members traded lower. Commercial International Bank Egypt COMI.CA fell 1% and El Sewedy Electric SWDY.CA declined 4.7%.

Local and Arab foreign investors were net sellers of Egyptian shares, according to the stock exchange data.

The Qatar's index .QSI slipped back 0.1% after snapping a three-day losing streak in the previous session. Mesaieed Petrochemical Holding MPHC.QA shed 1.9% and Industries Qatar IQCD.QA was down 0.5%.

However, Kuwait's index .BKP closed up 0.4%, buoyed by gains in banking shares. National Bank of Kuwait NBKK.KW edged up 0.1%.

Kuwait Finance House KFH.KW added a further 0.8% to previous session's gain following Bahrain central bank's approval for acquisition of Ahli United Bank AUBB.BH.

Dubai and Abu Dhabi stock markets are closed for three-day public holiday and will resume trading on Dec. 4.

SAUDI ARABIA

.TASI was down 0.9% to 7,833 points

QATAR

.QSI slipped 0.1% to 10,182 points

EGYPT

.EGX30 fell 1.7% to 13,538 points

BAHRAIN

.BAX was up 0.3% to 1,538 points

OMAN

.MSI was flat at 4,075 points

KUWAIT

.BKP was up 0.4% to 6,662 points

(Reporting by Maqsood Alam in Bengaluru Editing by Chizu Nomiyama)

((Maqsood.Alam@thomsonreuters.com;))

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