Hamad Mohammed Bin Saedan Real Estate is selling a 17.64% stake (equivalent to 4.2 mn shares) Tadawul’s parallel market Nomu, it said in its prospectus (pdf). The issuance will be equivalent to 15% of its post-IPO capital, which is set to hit SAR 282.4 mn from SAR 240 mn. The pricing of the offering has yet to be announced. The real estate player received regulatory approval for its planned IPO from the Capital Market Authority back in March.

Where will the money go? The company will use the net proceeds from the offering — after deducting SAR 3.5 mn in offering costs — to finance its expansion plans and future projects, whose total value is estimated at SAR 53.7 mn. This includes the development of a SAR 22.7 mn residential project in Riyadh’s Ar Rimal neighborhood, a SAR 15 mn residential project in the Namar neighborhood, and a SAR 16 mn logistics warehouse. The real estate player plans to top up the IPO proceeds with its own liquidity and additional financing to fund expansion plans if needed. Any surplus proceeds will be allocated to its working capital. Current shareholders will not receive any proceeds from the offering.

Subscription timeline: Qualified investors can subscribe for a minimum of 10 shares and a maximum of 1.4 mn shares each over a seven-day subscription window from Friday, 29 August to Thursday, 4 September. The final allocation of shares will take place on Sunday, 7 September, with the surplus being refunded over the following two working days.

A look at the company’s financial results: Hamad Mohammed Bin Saedan Real Estate’s net income increased by 31.1% y-o-y in FY 2024 to SAR 5.7 mn, compared to SAR 4.4 mn, while its revenue jumped 230.3% y-o-y to SAR 185.6 mn from SAR 56.2 mn.

About the company: Established in 2019, Hamad Mohammed Bin Saedan Real Estate Company is a firm specializing in real estate investment and development in the Kingdom. It holds a real estate portfolio of income-generating assets and residential, logistical, industrial, and commercial development projects, in addition to its investment in proptech real estate technology startups.

ADVISORS- Alinma Capital is acting as the lead manager on the transaction, while Merchants Capital is serving as the financial advisor, and AlShareef & Partners is providing counsel.

Receiving agents include Alinma Capital, AlJazira Capital, Albilad Capital, Alkhabeer Capital, ANB Capital, Al Rajhi Capital, BSF Capital, Derayah Financial, GIB Capital, Alistithmar Capital, Riyad Capital, Sab Invest, Sahm Capital, SNB Capital, and Yaqeen Capital.

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