Azm says existing shareholders sell 20% of stakes in Aqarek for SAR 40 mln

Logo of Saudi Azm for Communication and Information Technology Co. 

Saudi Azm for Communication and Information Technology Co. (Azm) announced that the National Real Estate Platform Co. (Aqarek) completed an investment round and included new value-added shareholders into the company's business portfolio, according to a bourse filing.   

On June 5, the existing shareholders sold 20% of their ownership to newshareholders and concluded a strategic partnership to promote and sell the new shareholders’ products at Aqarek platform. The deal was worth SAR 40 million.   

Azm indicated that, before the recent investment round, it owned a 38% stake in Aqarek. The Nomu-listed firm contributed to establishing Aqarek in late 2021 to be one of the leading platforms that revolutionize user experience in purchasing properties. 

The platform is an application to enhance user experience in buying, selling, promoting, and dividing land plots as well as undertaking off-plan sales. 

Under the terms of the deal, part of the investment round proceeds will be utilized in the development of Aqarek business, while another portion will be distributed among the existing shareholders. The new shareholders will be committed to displaying their products on the platform. 

Further, Azm indicated that the sale proceeds will be used in bolstering its financial position and introducing new products.  

The deal, which will help boost Aqarek services, included Maalem Holding Co., Mohammad Al Habib Real Estate Co. and others.  

The assets’ book value was estimated at SAR 3 million, but the asset of the transaction has not yet completed one fiscal year.  

Based on the contract’s terms, Azm predicts that the relevant financial impact will be positive for 2022 and the coming two years. 

Any related developments will be duly revealed, the statement added.