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Saudi Arabia’s Dar Al Majed Real Estate Co. (Almajdiah) IPO will debut on the kingdom’s Main Market on Wednesday, the second listing in a week, after a slow summer period that also saw the cancellation of Rawabi Marketing International Co.’s (RMI) planned offering on the Nomu-Parallel Market.
The retail tranche of Almajdiah was 278% oversubscribed, with total orders reaching nearly SAR 701 million riyals at the end of its three-day subscription period for individual investors on August 18.
Saudi’s Sinad Holding further committed to SAR 93.3 million riyals ($24.8 million) in Almajdiah’s IPO, equivalent to 6,666,666 shares at the offering price of SAR 14 per unit.
Sinad’s cornerstone commitment represents around 2.22% of Almajdiah’s capital.
The real estate developer is floating 90 million ordinary shares, representing 30% of its share capital. The SAR 14 per share pricing implies a market capitalisation of SAR 1.26 billion.
(Writing by Bindu Rai, editing by Seban Scaria)
