Dar Al Balad’s retail tranche 3.7x oversubscribed

Dar Al Balad IPO draws heavy retail demand: The retail tranche was 375.7% covered after drawing SAR 231 mn (USD 62 mn) in orders from over 90.2k investors at an offer price of SAR 9.75 per share, according to a Tadawul disclosure.

How much of the offering did they capture? Retail investors were allocated 6.3 mn shares, representing 30% of the total offering, with each subscriber assured a minimum of 10 shares. Strong retail demand means the tranche allocated to institutional investors will be reduced to 70%, good for 14.7 mn shares.

REFRESHER- The company priced its IPO at the top of its guiding range, implying a transaction size of around SAR 205 mn (USD 55 mn), after the institutional book build came in 66.6x oversubscribed. The pricing values Dar Al Balad at SAR 682 mn (USD 182 mn).

Why it matters: The sizable retail participation is the latest sign that demand for Saudi IPOs remains resilient, despite a busy issuance pipeline and ongoing geopolitical tensions that cast a shadow over the region’s dealmaking.

More in the pipeline: Several local firms are gearing up for listing in the upcoming period, with Ninja preparing for a potential IPO that could raise USD 1 bn by late 2026 or early 2027. Meanwhile, Mutlaq plans to list 30% of its share capital on Tadawul, and Arabian Dyar is eyeing a listing before CMA approvals expire in June.

ADVISORS- AlJazira Capital is quarterbacking the transaction as financial advisor, lead manager, and underwriter. It is also acting as joint bookrunner alongside Emirates NBD. Baker McKenzie is counsel.