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.
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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.
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.
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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.
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Image: The Saudi government has introduced various initiatives to boost homeownership. Credit: Afif Kusuma from Pixabay
