Retail tranche of Amlak IPO oversubscribed at 2,690%

Riyadh - Mubasher: The initial public offering (IPO) of Amlak International for Real Estate Finance was completed on Sunday, 5 July, after finalising the retail subscription tranche at a total coverage of 2,690%, NCB Capital announced.

The total number of retail subscribers came at 266,821, subscribing to invest SAR 1.17 billion at a share price of SAR 16. The institutional tranche of the IPO had previously achieved coverage of 498%, said a press release on Tuesday.

The successful completion of the offering registered a total coverage of 767% for the first IPO to take place in the kingdom since the end of March due to the coronavirus (COVID-19) pandemic.

Commenting on the announcement, CEO of Amlak International, Abdullah Al Sudairy, commented: “While financial markets and the wider business environment have been volatile in recent months, our equity story is one of both resilience and a path to long-term growth. The attractive fundamentals that exist for our industry remain in place, and we are looking forward to delivering on the expectations of investors.”

In the meantime, managing director and head of Investment Banking at NCB Capital, Wassim Al Khatib, said: “This has been an exciting transaction for us to lead, made more so by fast-moving developments in both the market and the logistics of the deal. This is the first time that an IPO in the kingdom has been run almost entirely remotely, and we are very proud to have led the first such transaction on Tadawul’s main exchange since the market was disrupted earlier this year due to COVID-19.”

Overall, 2.718 million shares, representing 10% of the offer shares, were allocated to retail subscribers, after approval from the Capital Market Authority (CMA). The total offer comprised 27.18 million shares or 30% of Amlak International’s share capital.

The final allocation of shares and refund of excess money will take place on 12 July and 14 July, respectively.