Saudi's Amlak floats IPO representing 30% of its capital

The IPO is reportedly marked as the exchange’s first initial public offering since the outbreak of the coronavirus crisis

Saudi's Amlak initiates first IPO representing 30% of its capital [representational image]
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Saudi's Amlak initiates first IPO representing 30% of its capital [representational image]

Saudi Arabia's non-bank real estate lender Amlak International (Amlak) has announced its plans to initiate an initial public offering (IPO) of 27.2 million shares representing 30% of the company's share capital, it said in a statement released by The Saudi Stock Exchange (Tadawul).

Amlak's IPO application has been approved by the Capital Markets Authority of Saudi Arabia. 

The IPO is marked as the exchange’s first initial public offering since the outbreak of the novel coronavirus crisis, a report by international news agency Reuters stated.

Speaking about the company's IPO plans, its chief executive, Abdullah Al Sudairy, said: “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, which has assets of approximately $826m (SAR3.1bn), stated that the final offer price would be announced on 30 June after a book-building process starting on June 22.

Earlier this year, the real estate lender revealed its financial results for the 12-month period ending 31 December 2019, showcasing net income growth of 14.5% year-on-year to $18.6m (SAR70m), with total revenues increasing 11% YoY to reach $78.66m (SAR296m).

Saudi Joint Stock company NCB Capital is the financial advisor, bookrunner, underwriter and lead manager for the offering.

Prominent shareholders including the Saudi Investment Bank and Dubai-based Amlak Finance, will be subject to a six month lock-up period.

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