Alramz Real Estate Company is taking a 30% stake (12.86 mn shares) to Tadawul’s main market, it said in a prospectus (pdf). The real estate developer lined up the Capital Market Authority’s approval for the move back in June.

The details: The entirety of shares will be offered to institutional investors, each able to book between 50k and 2.14 mn shares from Sunday, 23 November to Thursday, 27 November. Some 20% of the shares on offer will be open to retail investors between 7-9 December, provided there is sufficient demand. Retail investors will be able to apply for up to 250k shares each, with a minimum of 10 shares. Final allocations will be made on Monday, 15 December.

Post-IPO structure: Rasheed Abdulrahman Nasser Al-Rasheed — Alramz’s largest shareholder — will see his 80% stake diluted to 56%, with the remaining shares subject to a 12-month lock-up period beginning on the first day of trading. Meanwhile, the 3.89% stake held by Managing Director Harun Rasheed Abdulrahman Al-Rasheed will be reduced to 2.72%.

Use of proceeds: Proceeds from the offering, excluding SAR 27 mn for IPO-related expenses, will be used entirely by the company. Alramz will use some 37% of the net proceeds to develop projects, 36% to finance new real estate funds, and 23% for general corporate purposes. Current shareholders will not receive any funds from the offering.

Earnings snapshot: Alramz logged a net income of SAR 158.4 mn in 2024, up 25.1% y-o-y. Revenue was up 78.9% to SAR 951.8 mn during the same period.

About the company: Established in 2016, Alramz Real Estate Company operates through three main segments: directly owned projects, projects developed through funds, and developer-only projects. A pipeline of 17 projects is already in design or construction, set to deliver over 3.7k new units, with Riyadh hogging 70% of the pipeline’s value.

ADVISORS- SNB Capital is quarterbacking the transaction as the financial advisor, lead manager, bookrunner, and underwriter. Receiving agents include SNB Capital, BSF Capital, Al Rajhi Capital, SAB Invest, Alinma Capital, Riyad Capital, AlJazira Capital, Alistithmar Capital, AlBilad Investment, ANB Capital, Derayah Financial, Yaqeen Capital, AlKhabeer Capital, Sahm Capital, GIB Capital, Musharaka Financial, EFG Hermes KSA, and Awaed Financial Assets.

Tags: