Al Rajhi REIT’s IPO 174% oversubscribed, raises SAR 740 mln

Al Rajhi REIT Fund’s initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) was 174 percent oversubscribed, raising SAR 740 million, fund manager Al Rajhi Capital said on Wednesday.

As many as 90,561 individual and institutional investors participated in the IPO, which ran from Jan. 1 to Jan. 14.

The fund has a size of SAR 1.62 billion, of which about SAR 427 million was offered (42.7 million units at a par value of SAR 10).

Each subscriber will be allocated a minimum of 100 units, the statement said, adding that the remaining units will be allocated on a pro-rata basis to those who have subscribed for more than 100 units at a rate of 52 percent.

Refunds will be paid within five business days from the IPO closing date, Al Rajhi Capital said.

Proceeds from the IPO will be used to acquire new assets to further expand the Al Rajhi REIT’s investment portfolio.

Al Rajhi Capital owns around 10 percent in the REIT Fund post-IPO, and has committed not to sell any units for the next two years after listing.