Retail subscription to Retal's IPO starts today

Logo of Retal Urban Development Co.

Retail investors start today, June 5, subscription to 1.2 million of Retal Urban Development Co. shares, or 10% of total capital offered, at SAR 120 each, set by the book-building process.

The Capital Market Authority (CMA) approved on March 16 the company's request to float 12 million shares, or 30% of its capital, in an initial public offering (IPO).

The retail offering will run through June 6.

The institutional offering ended last week and was. 62.7x covered.

This will be the eighth listing on the main market this year, after East Pipes Integrated Company for Industry on Jan. 24, Scientific & Medical Equipment House Co. on Jan. 31, Elm Co. on Feb. 3, Al-Dawaa Medical Services Co. on Feb. 27, AMAK on March 9, Nahdi Medical Co. on March 13 and Saudi Home Loans Co. (SHL) on March 27.

Last year witnessed nine listings, including Alkhorayef Water and Power Technologies Co., Theeb Rent a Car Co., Tanmiah Food Co, solutions, ACWA Power, Arabian Contracting Services Co., Nayifat Finance Co., Saudi Tadawul Group and Almunajem Foods Co.

Company Profile

Retal is a closed joint stock company based in Al-Khobar. It was established in 2012.

The company’s capital is SAR 400 million, divided into 40 million shares of equal value. The company’s core business is the real estate development.

Retal consists of a group of subsidiaries that operate in concert to achieve integration in the following areas: infrastructure development, design and engineering consultancy, project management, building and contracting, property management, and facilities management.

Since its establishment in 2012, Retal has built a unique real estate portfolio that includes more than 30 completed and under-construction projects. These projects comprise a total of 7,284 housing units in various regions across the Kingdom. About 2,957 units were completed by the end of September 2021.

Subsidiaries:

Retal has six subsidiaries, in which it owns direct and indirect stakes, as follows:

Retal Subsidiaries
Subsidiary	Capital (SAR mln)	Core Business Activity	Direct Ownership	Indirect Ownership
Nesaj Urban Development Company (single shareholder company)	10.00	Management of construction projects.	100%	--
Tadbeir Limited Company	5.00	Building finishing and cleaning new buildings after construction	95%	--
Building Construction Company Limited (BCC)	5.00	General construction of residential buildings, non-residential buildings, and government buildings	95%	5%
Tadbeir Real Estate Limited Company	0.25	Buying, selling and dividing land and real estate, off-plan sales activities, management and leasing of owned or leased properties.	100%	--
Rimal AlKhobar Real Estate	0.50	General construction of residential and non-residential buildings	50%	--
Etlalat Al Sharq Real Estate Company	1.00	Construction and development of of residential and governmental buildings, using state-of-the-art techniques Management and leasing of owned or leased residential and non-residential properties.	50%	--

Company Profile
Company	Retal Urban Development Co.
Market	Main market
Core activities	Construction, real estate activities, administrative and support services.
Capital	SAR 400 mln
Number of shares	40 mln shares

IPO Summary
Issue percentage (%)	30%
Offering price	SAR 120
Number of shares offered to retail subscribers	1.2 million shares, or 10% of the 12 mln shares offered
Qualified subscribers	Retail investors
Minimum limit for retail investors	10 shares
Maximum limit for retail investors	250,000 shares
Retail subscription period	June 5-6
Final allocation	June 12
Surplus refunds	June 15

Special Information
Financial advisor, lead manager, underwriter and book runner	SNB Capital
Receiving banks	Saudi National Bank, Riyad Bank, Bank Albilad

Al Fozan Holding Co. is a major shareholder, owning 65.63% of the company’s shares, after IPO, followed by Abdullah Faisal Al Braikan with 3.50% of the share capital.

Company’s Major Shareholders
Shareholders	Before IPO		After IPO
Shareholders	Number of Shares (‘000 shares)	Ownership (%)	Number of Shares (‘000 shares)	Ownership (%)
Al Fozan Holding Co.	37,500.00	93.75%	26,250.00	65.63%
Abdullah Faisal Al Braikan	2000.00	5.00%	1,400.00	3.50%
Al Sahm Holding Co.	125.00	0.31%	87.50	0.22%
Athman Holding Co.	125.00	0.31%	87.50	0.22%
Jras Holding Co.	125.00	0.31%	87.50	0.22%
Maali Gulf Holding Co.	125.00	0.31%	87.50	0.22%
Public	--	--	12,000.00	30%
Total	40000.00	100.00%	40000.00	100.00%

For More IPOs

Comments {{getCommentCount()}}

Be the first to comment

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

Sorry: the validity period has ended to comment on this news

Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Comments {{getCommentCount()}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}}

Most Read

Market Indices

Quotes

Popular Links

Quick Links

About Us

Join Us

Follow Us