Alramz Real Estate set the price range for its upcoming Tadawul IPO at SAR 67-70 per share, according to an announcement from SNB Capital picked up by Argaam. The IPO would raise SAR 900.2 mn in gross proceeds at the top of the range, implying a market cap of SAR 3 bn at listing, according to our calculations.

ICYMI- The company is offering 12.86 mn newly issued shares, equivalent to 30% of itspost-increase capital. Capital will rise to SAR 428.57 mn — up from SAR 300 mn — upon the completion of the offering. Al Ramz secured binding commitments from three cornerstone investors for 2.7 mn shares last week.

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.

The book-building period for institutional investors kicked off yesterday and will run until Thursday, 27 November. Meanwhile, retail investors will be able to subscribe to 20% of the offered shares between 7-9 December. Final allocations will be made on Monday, 15 December.

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.

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