Saudi Arabia-based Amlak International for Real Estate Finance today (July 2) launched its initial public offering (IPO) of 27.2 million ordinary shares (30 per cent of share capital) at a share price of SR16 on the Saudi Stock Exchange (Tadawul).
The subscription period will last for four days, including the last day for closing the individuals (retail) subscription, which is Sunday (July 5), stated NCB Capital, the sole financial advisor, lead manager, bookrunner and underwriter for the IPO.
The offering will comprise 27.2 million ordinary shares and the net proceeds of the offering will be paid to the selling shareholders on a pro-rata basis.
The Capital Market Authority (CMA) had issued its resolution on December 25, 2019, approving the application for the offering.
The receiving agents (Saudi Investment Bank, National Commercial Bank, Al Rajhi Bank and Bank Al Jazira) will provide the platforms needed by investors within the receiving agents’ branches and electronic channels to receive subscription requests.
Under the IPO, individual investors can subscribe for a minimum of 10 shares, and a maximum of 1 million shares, with the shares allocated on July 12. The refund of surplus amounts, if any, will take place on July 14, said the statement from NCB.
The offering to individual investors comes after the successful completion of the institutional tranche. The total offered shares, which represent 30% of the Company’s share capital, were offered to institutional investors during a book building process, with institutional coverage reaching 500% of the total offered shares, it added.
Amlak International CEO Abdullah Al-Sudairy said: "The company is entering a new and important stage in its growth journey, having set the standard in the real estate financing sector."
"With promising long-term fundamentals in place for our industry, Amlak intends to continue to expand the scope of its customer base across both the individuals and corporate portfolio," he stated.
"Meanwhile, we will continue to build on the opportunities afforded by our collaboration with the Real Estate Development Fund, the Saudi Real Estate Refinance Company, and the Ministry of Housing, as we work to promote home ownership in the Kingdom and accelerate the pace of obtaining the necessary financing," he added.-TradeArabia News Service