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Amlak completes IPO; retail coverage at 26.9 times

July 8, 2020

The IPO of Saudi Arabia-based Amlak International for Real Estate Finance's shares was completed on Sunday (July 5) after finalising the retail subscription tranche with coverage by individuals at 26.9 times ratio, said NCB Capital, financial advisor, lead manager, bookrunner, and underwriter for the issue.

The total number of retail subscribers was 266,821, subscribing to invest SR1.17 billion at an offer price of SR16 per share.

The institutional tranche of the IPO had previously achieved coverage of 4.98x.

The successful completion of the offering saw total coverage of 7.67x for the first IPO to take place in the kingdom since severe market disruption at the end of March. For the first time in the local market, the IPO roadshow was conducted remotely, with investor presentations and meetings all staged on virtual platforms.

Abdullah Al Sudairy, CEO of Amlak International, commented: “We are pleased by the extremely healthy response to our IPO, which is evidence of the long-term view that the investment community has taken towards the Saudi economy and our company. 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, having provided the first-ever opportunity for exposure on Tadawul to the Kingdom’s non-bank real estate financing sector.”

Wassim Al Khatib, Managing Director and Head of Investment Banking at NCB Capital, 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. The success of the book-building and retail offering process is a testament to the strong investment case that exists for Amlak International and its sector. We now look forward to completing the listing process of the company in the coming days to make Amlak International the first publicly traded non-banking financial institution on Tadawul, and we are very proud of the outcome of this successful journey.”

In total, 2,718,000 shares representing 10% of the offer shares were allocated to retail subscribers, after approval from the Capital Market Authority. The total offer, priced at SR16 per share, comprised 27,180,000 shares, or 30% of Amlak International’s share capital. The final allocation of shares and refund of excess money will take place on July 12 and July 14, respectively, said the statement.

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