JEDDAH, 28 November 2007 — The initial public offering of Dar Al-Arkan Real Estate Development Company will start on Saturday and continue for a week, according to Eissa Al-Eissa, CEO of Samba Financial Group, the manager of the IPO. “We have completed all preparations for the IPO,” he added.
The company is offering 59.45 million shares worth SR3.33 billion from a total of 540 million to Saudi subscribers at the rate of SR56 per share including SR10 nominal value and SR46 premium.
“We have allocated 30 percent of the total shares or 17.84 million shares for Saudi individuals and 41.62 million or 70 percent to investment funds and other organizations,” Al-Eissa said, adding that the IPO manager has the right to reduce this allocation from 70 to 50 percent after approval from the Capital Market Authority (CMA).
Interested Saudi subscribers may purchase a minimum of 10 shares, the Samba chief said, adding that there is no ceiling.
Other commercial banks taking part in the IPO management are: NCB, Riyad Bank, SABB, Arab National Bank, Al-Rajhi Bank.