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The retail tranche of Saudi Arabia’s Dar Al Majed’s (Almajdiah) IPO was 278% oversubscribed, with total orders reaching nearly 701 million riyals ($187 million) 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.
Based on the outcome of the retail subscription period, the company said shares allocated to institutional investors will be scaled back to 72,000,000 representing 80% of the total Offer Shares.
Almajdiah 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.
Earlier this month, the real estate developer drew $36 billion in orders for its $336 million IPO, Bloomberg reported.
Saudi Fransi Capital has been appointed as the financial advisor, lead manager, underwriter and bookrunner for the IPO. BSF Capital is arranging the offering.
(Writing by Bindu Rai, editing by Seban Scaria)
