Saudi's Dar Al Arkan eyes IPO to sell 30% of property subsidiary
Up to 30% of Dar Al Arkan Properties Co, which holds assets worth $720bn across the kingdom, will be sold through the IPO, it has been confirmed
Saudi Arabia's Dar Al Arkan Real Estate Development Company has announced its plans to sell 30% of a subsidiary company.
An initial public offering (IPO) will be floated to sell the stake in Dar Al Arkan Properties Company.
Samba Capital and Investment Management Co has been appointed as the IPO's financial adviser.
In a statement to the Saudi bourse, Dar Al Arkan said it would file the offering application to the Capital Market Authority for further approvals.
Dar Al Arkan Properties Co is fully owned by Dar Al Arkan Real Estate Development, and the firm provides property management and leasing services.
The property company holds income-producing assets worth almost $720bn (SAR2.7bn) in different cities across the kingdom.
In December 2017, Dar Al Arkan launched its international project portfolio with a $218m (AED800m) Roberto Cavalli-designed residential development in Dubai.
Located in Business Bay, the I Love Florence 34-storey high-rise tower will offer one-, two-, three-, and four-bedroom apartments, as well as penthouse views of the Dubai Water Canal.
The collaboration marks the first time that the Roberto Cavalli fashion brand has extended its name to a real estate development, providing interior fit-outs and signature designs from floor to ceiling.
Commenting on the project, Ziad El Chaar, chief executive officer of Dar Al Arkan, told Construction Week: "To complete construction as quickly as possible, we have divided the project into parts.
"Enabling works, shoring, and excavation have already started, with piling works to begin next. When that is completed, the main contractor will mobilise."
Chaar said tendering for the main contractor would begin between March and April 2018, with the aim of starting work by mid-2018.
The project, which is scheduled to break ground this month, is due to be completed in June 2021.
Dar Al Arkan appointed Chaar to his current role in June 2017.
After joining Dubai's Damac Properties in 2005 as vice president of international sales, Chaar took on the position of managing director in 2011.