SEDCO Capital REIT’s IPO 101% oversubscribed

SEDCO Capital REIT’s initial public offering on Tadawul was 101 percent oversubscribed, raising SAR 606 million, fund manager Saudi Economic and Development Securities Co. (SEDCO Capital) told Argaam.

Around 74,000 individual and institutional investors took part in the public offering.

Each subscriber will be allocated a minimum of 50 units, and remaining units will be allocated at a rate of 0.99 percent on a pro rata basis.

Refunds will be dispensed in five business days through the receiving entities.

Commenting on the successful offering, chief executive officer of SEDCO Capital Hassan Al Jabri said the strength of SEDCO Capital REIT’s investment portfolio played a great role in drawing investors.

The fund’s portfolio has seven income-generating properties in Riyadh and Jeddah, including hotels, offices, shopping malls, and residential and commercial unit. The duration of their contracts vary, to achieve both growth and stability, he said.

“We are proud of the success of this offering-- which is the largest REIT fund in terms of cash size-- and the subscription of an excellent mix of institutions and individuals. The fund will be a good addition to the REIT sector after the completion of its listing on Tadawul," said NCB, the fund’s financial advisor and exclusive offering agent.