Jadwa REIT Al-Haramain Fund 1,257% oversubscribed

Jadwa Investment’s initial public offering (IPO) of Jadwa REIT Al-Haramain Fund on the Saudi Stock Exhange (Tadawul), ended 1,257 percent oversubscribed, raising SAR 4.53 billion, the company said in a statement.

More than 5,800 investors subscribed to the first closed-ended Shariah-compliant REIT fund units.

The fund was launched with a size of SAR 660 million, of which SAR 360 million were offered in the IPO (36 million units at a par value of SAR 10) starting April 3 to April 9, 2017.

Up to 1,000 units will be allotted to investors, while the remaining will be allocated on a pro-rata basis. Refunds will be paid by the end of next week, Jadwa added.

“The primary objective of the Fund is to provide investors with attractive investment opportunities in income-generating real estate assets in Makkah and Madina.” said Tariq Al-Sudairy managing director and chief executive officer of Jadwa Investment Company.