Riyadh-based Al Rimal Real Estate successfully completed its initial public offering, with subscriptions from individual investors fully allocated according to a statement released today. The offering, managed by Al Ahli Financial, signals continued confidence in Saudi Arabia‘s real estate market and provides a new investment chance for both retail and institutional investors. Details on the IPO‘s performance and the company’s future capital structure are outlined below.
Al Rimal Real Estate logo
Al Rimal Real Estate’s initial public offering (IPO) was fully subscribed by individual investors, according to a statement from Al Ahli Financial, acting as financial advisor, lead manager, underwriter, and bookrunner for the offering. The allocation for individual investors totaled 2.57 million shares, representing 20% of the total shares offered.
The company announced that all shares applied for by individual investors have been allocated, with no surplus remaining. This outcome suggests strong demand from retail investors for a stake in the real estate developer.
According to data from Argaam, Al Rimal Real Estate offered 30% of its shares on the main market, issuing 12.86 million new shares. This represents a 30% stake in the company’s capital after an increase. The company’s current capital is 300 million Saudi Riyals, divided into 30 million shares with a nominal value of 10 Riyals per share. Following the IPO, the capital will increase to 428.57 million Riyals, comprising 42.86 million shares.
The individual subscription period recently concluded, offering 2.57 million shares at a price of 70 Riyals per share. The strong demand from individual investors underscores the appeal of the offering within the Saudi market.
Institutional subscription was covered approximately 11.1 times the total number of shares offered. Any remaining shares from the individual allocation will now be allocated to institutional investors.
The successful IPO of Al Rimal Real Estate highlights continued investor interest in the Saudi Arabian real estate sector, which has seen significant growth in recent years.
