Retal Urban Development, a Saudi Arabia property developer, has plans to raise $383.92m (SAR1440m) through the initial public offering (IPO).
It has priced its per share at $31.99 (SAR120) for the IPO.
Go deeper with GlobalData
This price is at the top of the indicated range, which means a market capitalisation of $1.28bn (SAR4.8bn), reported Reuters.
The process of book-building produced orders of $24.8bn (SAR90.3bn), a sign of strong momentum for IPO market of Saudi Arabia, as against the international trend.
The company plans to sell 30% of its current shares, reported the news agency.
See Also:
According to Refinitiv data, issuers in the Gulf region have raised $8.76bn from IPOs so far in 2022, which is more than the flotations in Europe.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataGlobal markets have been fluctuating in the wake of Russia’s military incursion on Ukraine.
Retal Development CEO Abdullah bin Faisal bin Abdulaziz al-Braikan was quoted by Reuters as saying: “The robust demand for Retal’s shares reflects the attractiveness of our scalable business model and highlights the investor appetite for next generation real estate development companies such as ours.”
The Saudi government has introduced various initiatives to boost homeownership and has also launched an investment drive to build infrastructure projects such as the $500bn NEOM economic zone.
The NEOM project is financed mainly through $500bn allocated by Saudi Arabia’s Public Investment Fund.
It is expected to be a eco-friendly and technologically-advanced megacity that would draw investment and companies from all world over.
Expected to be 33 times the size of New York, this futuristic megacity will be located in north-western Tabuk region of Saudi Arabia, along the coast of the Red Sea.
—————————————————————————————————————–
Image: The Saudi government has introduced various initiatives to boost homeownership. Credit: Afif Kusuma from Pixabay
