Amlak International for Real Estate Finance Co. started trading today, July 13, on the Saudi Stock Exchange (Tadawul) under the symbol 1182 in the banks industry group, with a 10% daily price fluctuation limit per share.
Amlak is the second entrant to the main Saudi market so far this year, following Dr. Sulaiman Al Habib Medical Services Group which was the first to enter the market in the healthcare sector last March.
Last year, Tadawul witnessed the listing and trading of Al Moammar Information Systems Co., Maharah Human Resources Co., Arabian Centres Co. and Ataa Educational Co. in addition to the history’s largest IPO of Saudi Aramco.
With this listing of Amlak, the number of Saudi-listed companies rose to 184 in addition to 17 real estate investment traded funds (REITs).
The company floated 27.18 million shares, or 30% of its share capital. It allocated 90% of total shares on offer for institutional investors, with the remaining 10%, or a maximum of 2.72 million shares, will be offered to retail investors.
The institutional offering was 500% oversubscribed. Meanwhile, a total of 266,820 subscribers injected SAR 1.2 billion to buy shares at SAR 16 each in the retail offering, which was 2,690%, or 26.9x oversubscribed.
The leading non-bank real estate finance company also allocated a minimum of 10 shares to each retail subscriber and each individual included in the subscription request, while the remaining shares will be allocated on a pro rata basis at around 0.07%.
Key Highlights:
Amlak International was incorporated as a closed joint stock company with SAR 1 billion capital, divided into 100 million shares priced at SAR 10 each. In 2012, shareholders approved reducing capital to SAR 900 million, as the company had excess capital. Amlak International bought 10 million shares and wrote down those shares.
In 2017, shareholders approved raising capital to SAR 903 million through issuing new shares to some employees under the Employee Share Scheme. In 2018, they also greenlighted hiking the company’s capital to SAR 906 million – the current share capital - through issuing new shares to some employees under the Employee Share Scheme.
The company’s principal activity is focused on providing real estate finance services for companies and individuals, according to the Companies Law, the Law on Supervision of Finance companies, as well as the relevant rules and regulations issued by the competent authorities.
Amlak International operates through three branches in Riyadh, Jeddah and Khobar. It offers real estate finance with three key products, namely Murabaha, Ijara and Ijara Mawsofa fi Athemmah.
Amlak International owns 100% of Amlak International for Real Estate Development. It operates in selling, buying and leasing real estate and land plots.
It also owns a 2.38% stake in Saudi Financial Lease Contract Registry Co. (SIJIL). The company’s finance portfolio stood at SAR 3.09 billion as on Dec. 31, 2018.
Amlak’s Clients:
Corporates: Local companies and High net worth persons. Finance contracts are valued between SAR 5 million and SAR 80 million, with a tenor of five years.
Retail: Finance is provided for citizens and residents, when they obtain the necessary regulatory approvals. Finance contracts are valued between SAR 0.3 million and SAR 5 million, with a tenor of 13 years in average.
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Amlak’s Clients Contracts Ratio as of June 30, 2019 |
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Category |
Ratio (%) |
Number |
|
|
Corporates |
68.8 % |
132 |
|
|
Retail |
31.2 % |
1,104 |
|
|
Total |
100 % |
1,236 |
|
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Company’s Profile |
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Company |
Amlak International for Real Estate Finance Co. |
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Market |
Tadawul All Share Index (TASI) |
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Company core activity |
Retail and corporate real estate financing |
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Status |
Active |
|
Capital |
SAR 906 mln |
Saudi Investment Bank (SAIB) is the biggest shareholder in the company with a 22.41% stake. Amlak Finance comes second (18.35%).
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Amlak’s Major Shareholders Ownership |
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Shareholders |
Number of shares (mln shares) |
Stake % |
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SAIB |
20.30 |
22.41 % |
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Amlak Finance |
16.63 |
18.35 % |
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Al Tawfeek Development House Holding |
9.10 |
10.04 % |
|
Makarem International Real Estate Development |
3.57 |
3.94 % |
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Aseer Trading & Tourism |
3.50 |
3.86 % |
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Remaining shareholders |
10.32 |
11.40 % |
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Public |
27.18 |
30.00 % |
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Total |
90.60 |
100 % |
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