Wasatah REIT’s fund manager cancels IPO

Wasatah Capital has decided to cancel the listing and initial public offering (IPO) of Wasatah REIT Fund, due to insufficient subscription, the fund manager said in a statement.

Al Rajhi Bank, National Commercial Bank (NCB), Arab National Bank (ANB), Riyad Bank, and Wasatah Capital will notify subscribers of the decision and return all collected payments to investors’ accounts within five days from the cancellation date.

No commissions will be deducted, as per the fund’s terms and conditions.

Saudi Arabia’s Capital Market Authority (CMA) in December approved Al Wasatah Al Maliah Co.’s (Wasatah Capital) request to offer, register and list Wasatah REIT units on Tadawul as a Real Estate Investment Traded Fund.

The IPO started on Jan. 14 and closed on Feb. 1, with 32.4 million units offered at SAR 10 each.

The fund planned to acquire the Movenpick Riyadh and Coral Al Khobar hotels, which are owned by Mohamed Bin Abdulaziz Al-Rajhi & Sons Investment. Wasatah REIT had a target size of SAR 1.08 billion.