Almajdiah stumbles on Tadawul debut, despite strong IPO demand

Dar Al Majed Real Estate (aka as Almajdiah) joined a roster of muted debuts on Tadawul’s main market, inching down 1.2% to close at SAR 13.83 yesterday. This is despite an institutional offering that was 107x oversubscribed in early August, while the retail tranche closing 2.8x oversubscribed. The stock swung between a high of SAR 14.50 and a low of 13.40, with SAR 547.4 mn in value traded across 48.3k trades.

REFRESHER- The developer priced shares at SAR 14 apiece, the top of the indicative range. Selling shareholders raked in SAR 1.26 bn in proceeds from the sale of a 30% stake. The company landed Sinad Holding as a cornerstone investor with a 2.2% stake in July..

ADVISORS- Saudi Fransi Capital quarterbacked the transaction as financial advisor, lead manager, underwriter, and bookrunner, while Baker McKenzie provided counsel.

Receiving agents included our friends at EFG Hermes KSA, alongside 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.

ALSO IN THE PIPELINE-

• Cherry Trading was the latest to secure approval from the Capital Market Authority to IPO a 30% on the main market;
• Meanwhile, IT firm Ejada Systems, which missed its six-month IPO window, is set to resubmit an IPO application to the CMA;
• Local contractor Mutlaq Al Ghowairi Contracting (MGC) and fast delivery app Ninja are said to be considering a Tadawul IPO as early as next year
• Meanwhile, fintechs Emkan Finance and Tamweel Aloula are also rumoured to be eyeing main market IPOs;
• Coldchain manufacturer Consolidated Grunenfelder Saady Holding got the regulators’ all-clear to float a 30% stake on Tadawul;
• PIF-backed Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby are among companies that tapped banks for potential IPOs;
• F&B players Barns, Half Million, Deemah, and Hashi Bashi are said to be sounding out banks for potential debuts on the main market;
• Almosafer is preparing for a public listing on Tadawul by late 2025 or early 2026;
• PIF-backed CloudKitchens is reportedly eyeing an IPO in the Kingdom or the UAE (or both);
• Meal subscription startup Calo is also said to be eyeing an IPO here at home by 2027.