Dar Al Majed issues IPO prospectus: Dar Al Majed Real Estate — the brand operator behind Almajdiah — is taking a 30% stake to the main market via a secondary offering, according to its prospectus (pdf). Some 90 mn existing shares will be up for grabs in an offering open to both local and regional individual and institutional investors. Books open next week, with the listing date still under wraps.

About Dar AlMajed: Founded in 2014, the Riyadh-based company operates in real estate planning and investment. It has completed over 180 projects, delivering over 18k residential units to 70k residents across the Kingdom, according to its website.

Big fish get first pick: The entirety of shares will be offered to institutional investors, including 30% reserved for public funds. They will be able to book between 15 mn and 250k shares each from Tuesday, 29 July to Monday, 4 August.

…with a clawback for the public: Some 20% of the shares on offer will be open to retail investors between 14-18 August, provided there is sufficient demand. They can apply for up to 2.5 mn shares each, with a minimum of 10 shares. Final allocations will be made on Wednesday, 20 August.

Major shareholders pocket the proceeds: Offering existing shares means selling shareholders are to rake in net proceeds from the sale, excluding SAR 40 mn in IPO-related costs. Direct substantial shareholders will see their holdings reduced to a combined 51% stake post-IPO, down from 73%, subject to a six-month lockup period from the first day of trading.

Dar AlMajed joins a growing roster of real estate players turning to Tadawul for visibility, fresh capital, or shareholder liquidity. This momentum is likely being driven by rising housing demand, tighter bank credit, and the need to fund increasingly large project pipelines.

ICYMI- PIF-backed developer Umm Al Qura for Development and Construction took a 9.1% stake to market in a SAR 2 bn primary offering earlier this year. Meanwhile, property developer Alramz Real Estate has recently lined up regulatory approval to float a 30% stake on the main market, and Al Othaim Investment revealed plans to IPO later this year.

Show me the financials: The firm’s net income grew 74.1% y-o-y to SAR 230 mn in 9M 2024, while its revenue was up 45.6% y-o-y at SAR 1 bn as it capitalized on stronger property sales, including land and inventory.

ADVISORS- Saudi Fransi Capital is quarterbacking the transaction as financial advisor, lead manager, underwriter, and bookrunner, while Baker McKenzie is providing counsel. PwC is acting as financial due diligence advisor, while Colliers is serving as market consultant.

Receiving agents include our friends at EFG Hermes KSA, Al Rajhi Capital, SAB Invest, Alinma Capital, Riyad Capital, Aljazira Capital, Alisthimar Capital, ANB Capital, SNB Capital, Derayah Financial, Yaqeen Capital, Alkhabeer Capital, and Sahm, among others.

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