Retail investors in Saudi Arabia were given a boost after real estate finance company, Amlak International, launched the first initial public offering in the region since the outbreak of the coronavirus.
The listing on the Saudi stock exchange, or Tadawul, saw 2.7 million shares offered to individual subscribers at US$4.27 per share.
It is the second phase of its IPO and is aimed at retail investors after the first offering to institutional investors, which was roughly equivalent to 30% of the company’s share capital, was oversubscribed by five times.
Amlak International chief executive, Abdullah Al-Sudairy, said that the IPO came at a time when the company is “entering a new and important state in its growth journey” amid “promising long-term fundamentals” in place for the region’s real estate sector.
Al-Sudairy also said Amlak would “continue to build on the opportunities afforded by our collaboration with the Real Estate Development Fund, the Saudi Real Estate Refinance Company, and the Ministry of Housing, as we work to promote home ownership in the Kingdom and accelerate the pace of obtaining the necessary financing”.
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