Arabian Centres announces SAR 36.72 mln proceeds from Amlak International IPO

Arabian Centres Co. announced SAR 36.72 million as proceeds from the initial public offering (IPO) of Amlak International for Real Estate Finance, ended July 5, 2020, after setting the sale price at SAR 16 per share.

The company said in a bourse statement that the proceeds represent 30% of Arabian Centres’ indirect ownership in Amlak International’s capital, adding that part of it will be deducted as IPO fees.

The financial impact of the proceeds will reflect on the company’s Q2 financial statements ending Sept. 30, 2020.

Arabian Centres owns a total of 8.44% in Amlak International’s capital before its IPO (5.91% post IPO), where the investment comes through two subsidiaries, with 5.63% through Al Makarem International for Real Estate Development Co. (3.94% post IPO), and 2.81% through Al Bawarij International for Development & Real Estate Investment Co. (1.97% post IPO).

According to data compiled by Argaam, Amlak International floated 27.18 million shares, or 30% of its share capital, of which 90% were allocated for institutions, with the remaining 10%, or a maximum of 2.72 million shares, offered to retail investors.

The retail subscription for the IPO ran from July 2 until July 5 and was 2,690%, 26.9x oversubscribed. A total of 266,820 subscribers injected SAR 1.2 billion to buy shares at SAR 16 each.

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