Dar Al Arkan’s Dar Global debuts on LSE; no material financial impact

Logo of Dar Al Arkan Real Estate Co.

Dar Al Arkan Real Estate Co.’s subsidiary, Dar Global PLC, debuted on London Stock Exchange (LSE) on Feb. 28, according to a Tadawul statement.

Dar Global offered 21.62 million shares for subscription (capital increase), equivalent to 12% of total shares. This came through a private placement at a price of $3.33 per share, and a total value of $72 million.

There is no material financial impact as result of the listing. Meanwhile, immaterial differences, if any, will be calculated in the next financial period, the statement added.

Dar Al Arkan, post listing, retained 88% of shares in Dar Global valued at $527.5 million (158.4 million shares at listing price of $3.33 each).

The Saudi-listed firm also indicated that its investment in Dar Global at the time of private placement was valued at $281 million. For the private placement, the company was valued at $600 million.

Accordingly, Dar Global issued 21.62 million new shares for $72 million, consisting of share capital and issue premium, which were accounted as equity of Dar Global. After the direct listing, total shares stood at 180.02 million and the capital increase represented 12% of the total capital.

The $72 million increase in capital and issue premium will be retained by Dar Global to expand its operations and grow at a faster rate. Dar Al Arkan will continue to achieve accelerated growth rate without any fundamental change in the value of its investment, the statement noted.

According to data compiled by Argaam, Dar Global's portfolio includes 11 projects in six different countries. There are three projects scheduled for completion in the last quarter of 2023: Urban Oasis, Da Vinci Tower in Dubai and Sidra in Bosnia, in addition to several others still pending.