Jadwa REIT Al Haramain to begin trading today

Jadwa Investment Real Estate Investment Traded Fund (Jadwa REIT Al Haramain) will start trading on the Saudi Stock Exchange (Tadawul) today, Sunday, April 30, with the code 4332, the exchange said in a statement.

 The daily price fluctuation limit per share will be 10 percent.

The initial public offering (IPO) of Jadwa REIT Al Haramain Fund, which was massively oversubscribed, raised SAR 4.53 billion.

More than 5,800 investors subscribed to the first closed-ended Shariah-compliant REIT fund units that is that is managed by Jadwa Investment Co. Up to 1,000 units were allotted to investors, while the remaining were allocated on a pro-rata basis.

Jadwa’s is the third REIT to be listed on the local bourse after Riyad REIT which started trading last November, and Aljazira Mawten REIT which was listed in February.

The fund, which currently invests in the hospitality sector of Makkah city, 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).

The fund’s primary investment objective is to provide investors with regular income by investing in income-generating real estate assets in Makkah and Madinah.