{"id":99482,"date":"2025-08-07T00:00:00","date_gmt":"2025-08-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/08\/07\/dar-al-majed-sees-hot-demand-for-ipo\/"},"modified":"2025-08-07T00:00:00","modified_gmt":"2025-08-07T00:00:00","slug":"dar-al-majed-sees-hot-demand-for-ipo","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/08\/07\/dar-al-majed-sees-hot-demand-for-ipo\/","title":{"rendered":"Dar Al Majed sees hot demand for IPO"},"content":{"rendered":"

Dar Al Majed Real Estate (aka as Almajdiah) pulled in a massive SAR 135 bn in<\/strong> orders for its Tadawul IPO<\/strong>, as investors rush to grab a piece of the Kingdom\u2019s booming property market. Institutional investors went all in<\/a>, oversubscribing their tranche 107x within hours, Bloomberg<\/a> reports, citing a statement.<\/p>\n

Hot demand pushed the price up: <\/strong>The developer priced shares at SAR 14 apiece, the top of its range. Selling shareholders are set to rake in SAR 1.26 bn in proceeds from the sale of 90 mn shares \u2014 a 30% stake<\/a> of the company. It would also give Almajdiah a market cap of SAR 4.2 bn at listing. <\/p>\n

Next steps: <\/strong>Retail investors will get their turn from 14-18 August to subscribe to 20% of the offering. The company landed Sinad Holding as a cornerstone investor<\/a> last week with a 2.2% stake.<\/p>\n

IN CONTEXT- <\/strong>The frenzy comes as the Kingdom makes it easier for foreigners to buy<\/a>property<\/a> and pushes homeownership through its Vision 2030 program. \u201cLocal developers, especially those with a strong land bank and that have active projects in tier-1 cities, stand to benefit significantly\u201d from the reforms, Emirates NBD Capital\u2019s Prasad Chari told Bloomberg.<\/p>\n

ICYMI- <\/strong>PIF-backed Umm Al Qura for Development and Construction took a 9.1% stake to market in a SAR 2 bn<\/a> primary offering earlier this year, the second largest after Flynas<\/a>. The developer\u2019s share price is up 21% since listing.<\/p>\n

ADVISORS-<\/strong> Saudi Fransi Capital is quarterbacking the transaction as financial advisor, lead manager, underwriter, and bookrunner, while Baker McKenzie is providing counsel. PwC is acting as financial due diligence advisor, while Colliers is serving as market consultant.<\/p>\n

Receiving agents <\/strong>include our friends at EFG Hermes KSA, 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.<\/p>\n

Zooming out:<\/strong> The Kingdom remained the region\u2019s IPO powerhouse in 1H, accounting for the lion\u2019s share with USD 2.8 bn raised across 22 offerings \u2014 a 36% y-o-y increase in value in the first six months of the year \u2014 representing 85% of total GCC IPO proceeds. <\/p>\n

ALSO IN THE PIPELINE-<\/strong><\/p>\n