Saudi property firm Amlak plans first post-coronavirus Riyadh IPO

Saudi Arabia is encouraging new companies to list in a bid to deepen capital markets. (AFP)
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Updated 15 June 2020

Saudi property firm Amlak plans first post-coronavirus Riyadh IPO

  • Being a publicly listed company will give us more visibility among our clients, will help us build our business, Abdullah Al-Sudairy, CEO of Amlak International

RIYADH: Saudi real estate financing firm Amlak International said it will float 30 percent of its shares in Riyadh, in what will be the exchange’s first initial public offering (IPO) since the coronavirus crisis.

The Kingdom is encouraging more Saudi companies to list in a bid to deepen its capital markets as part of economic reforms aimed at reducing its reliance on oil revenues.

Amlak, which has assets of around SR3.1 billion ($826 million), said the final offer price would be announced on June 30 after a book-building process starting on June 22.

“Being a publicly listed company will give us more visibility among our clients, will help us build our business and will also help reduce our cost of capital and boost profitability considerably,” Amlak CEO Abdullah Al-Sudairy said.

Saudi Arabia’s NCB Capital is the sole financial adviser, bookrunner, underwriter and lead manager for the deal, which will have tranches for retail and institutional investors.

Major shareholders, which include the Saudi Investment Bank and Amlak Finance, a Dubai-based Islamic mortgage company, will be subject to a six month lock-up period.

“Driven by population growth and supportive government policy, housing demand in the Kingdom is expected to increase 188,000 units per year until 2021, increasing to 203,000 per year from 2022-2025 and to 219,000 per year from 2026-2029,” Amlak said in a statement.

Saudi retailer BinDawood Holding also plans to launch an initial public offering as early as this month, two sources with knowledge of the matter said.

The group, which controls supermarket chains Bindawood and Danube in the Kingdom, last year hired Goldman Sachs, JP Morgan Chase, NCB Capital and GIB to organize the deal, the sources said, with Moelis & Co. acting as a financial adviser.


Dubai announces additional economic stimulus package of $1.7 billion

Updated 11 July 2020

Dubai announces additional economic stimulus package of $1.7 billion

  • The stimulus comes in three packages
  • One of the packages includes the waiving of some license renewals for schools

DUBAI: Dubai will release another economic stimulus package of $1.7 billion in three instalments, the emirate’s Crown Prince tweeted.
The first package is worth $408 million and covers 15 initiatives, Hamdan bin Mohammed Al-Maktoum said on Twitter.
The second package is valued at $898 million, with eight initiatives including the delay of rental payments and return of security deposits, Al-Maktoum added.
The last package is also valued at $408 million and covers 18 initiatives, such as waiving of teaching and business licenses for schools, the Crown Prince tweeted.

The stimulus aims to help the tourism-dependent city overcome the economic effects of coronavirus.