The agreements with the principal shareholder of First Avenue Nader bin Hassan bin Atallah Al Amri, Dar Al Majed Real Estate Company and First Avenue include an obligation on them to take necessary actions to complete the initial public offering (IPO) of First Avenue and to obtain the necessary approvals for publishing the supplementary prospectus related to the Transaction, and also include a restriction on the disposal of shares for the principal shareholder, said Makkah Construction in its filing to the Saudi bourse Tadawul.

 

Under this, Makkah Construction acquired a total of 56.8 million ordinary shares of First Avenue

 

The entire transaction was funded through the company’s internal resources and existing facilities.

 

A major player in Saudi property sector, First Avenue Real Estate is currently developing a  rnage of projects, most notably Jadat Al-Diriyah, Business Avenue 1, Business Avenue 2, Business Avenue 3, La Perle East, La Perle West and Jadat Al-Nakhil.

 

Its portfolio also includes projects in cooperation with leading financial instructions through establishing different real estate funds.

 

In the context of its IPO, Makkah Construction said the First Avenue will increase its capital to issue the 16.4 million shares it will offer (representing 8.01% of the capital after the IPO, and 8.7% before it). As such, if the IPO completes, the company’s ownership will decrease from 30.13% to 27.7%.-TradeArabia News Service