Amlak to launch First Post-Coronavirus IPO in Saudi Arabia

Amlak to launch First Post-Coronavirus IPO in Saudi Arabia

Saudi real estate financing firm Amlak International said on Sunday 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.

Amlak; which has assets of around SAR3.1bn ($826 million), said that the final offer price would be announced on June 30. This will be 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. More so, it will also help reduce our cost of capital and boost profitability considerably,” Amlak Chief Executive Abdullah Al Sudairy told Reuters by telephone.

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

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