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.


Canada’s Trudeau to unveil plan to address coronavirus outbreak, revive economy

Updated 23 September 2020

Canada’s Trudeau to unveil plan to address coronavirus outbreak, revive economy

  • Trudeau will stress the need for environmental policies such as retrofitting buildings, boosting the use of electric vehicles and biofuels
  • Trudeau is paring down talk of a green revolution to slash reliance on export of fossil fuels

OTTAWA: Canadian Prime Minister Justin Trudeau will unveil on Wednesday what he says is a far-reaching plan to help the economy recover from the coronavirus pandemic while ensuring efforts to fight the outbreak do not falter.
Trudeau, who has consistently vowed to do more to combat climate change, is paring down talk of a green revolution to slash reliance on export of fossil fuels as Canada faces a resurgence in coronavirus cases.
“The three prongs of what we are doing are fighting COVID-19, supporting Canadians, and a resilient recovery,” said a government source who requested anonymity given the sensitivity of the situation.
The so-called Speech from the Throne outlining government plans is a confidence measure and given that Trudeau’s Liberals only have a minority in the House of Commons, they will need the support of opposition legislators to avoid being toppled and plunging the country into an election.
The left-leaning New Democrats have made clear they are likely to vote in favor. Trudeau’s popularity initially soared over his handling of the pandemic, but polls suggest he and the Liberals were damaged by a scandal over his close ties to a charity chosen to run a student grant program.
Parliament is usually packed for the occasion but COVID-19 means few legislators will be present when Governor General Julie Payette — the representative of Queen Elizabeth, Canada’s head of state — delivers the speech at around 3 p.m. (1900 GMT).
Later on Wednesday, Trudeau plans to make a national address to address the urgency of fighting COVID-19, a spokesman said.
Officials say the throne speech will contain policy proposals such as childcare and an expanded employment insurance program rather than specific spending commitments, some of which will be disclosed in a fiscal update later in the year.
But Trudeau will stress the need for environmental policies such as retrofitting buildings, boosting the use of electric vehicles and biofuels, aides say.