Amlak International sets timeline for IPO on Tadawul

Amlak International for Real Estate Finance, Saudi-based non-bank real estate finance company, will proceed with an initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

The retail offering will start from July 2 until July 5.

The company will float 27.18 million shares, or 30% of its share capital. 90% of total IPO shares will be allocated for institutions, with the remaining 10%, or a maximum of 2.72 million shares, will be offered to retail investors.

The book building process for institutions will run from June 22 until June 29, the company said in a statement to Argaam.

Amlak International was  established in 2007 as a closed joint stock company with SAR 906 million in capital.

It was licensed by the Saudi Arabian Monetary Authority (SAMA) in 2013 to provide Sharia-compliant real estate financing solutions to corporate (including high-net-worth-individuals HNWIs) and individual clients.

On Dec. 25, 2019, the Capital Market Authority (CMA) approved Amlak’s request to sell 27.18 million shares, or a 30% of its capital, in an IPO.

Last week, the market regulator extended its approval for floating and listing Amlak’s shares until July 15.

The company appointed NCB Capital as sole financial advisor, sole bookrunner, sole underwriter and lead manager for the offering.

Amlak reported SAR 296 million in revenues in 2019. Its earnings before tax (EBT) hit SAR 102 million, leading to a margin of 34.4% in 2019.

In Q1 2020, revenue hit SAR 75 million, while EBT stood at SAR 33 million. The first quarter margin reached 44%.

Saudi Investment Bank (SAIB) was the biggest shareholder in the company, holding a 32.01% stake by the end of 2018. Amlak Finance came second with a 26.21% stake.

The following table illustrates shareholders’ ownership by the end of 2018:

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