Alramz launches retail subscription for 2.57M shares at SAR 70

Alramz Real Estate Co. launches a three-day retail offering that will close on Dec. 9.

Retail investors begin subscribing today, Dec. 7, to 2.57 million shares of Alramz Real Estate Co. on the Main Market (TASI) at SAR 70 per share, set through the book-building process.

The retail offering will run for three days, until Dec. 9, and represents 20% of the total shares on offer.

On June 30, the Capital Market Authority (CMA) approved Alramz’s application to float 30 million shares on TASI, representing 30% of its SAR 428.57 million capital, divided into 42.86 million shares at a par value of SAR 10 each. The company’s institutional offering, which concluded last week, was 11.1 times oversubscribed.

This is the 13th IPO on TASI this year after Derayah Financial Co. on Feb. 20, Arabian Company for Agricultural & Industrial Investments (Entaj) on Feb. 26, and Umm Al Qura for Development and Construction Co. (Masar) on May 5. This is in addition to United Carton Industries Co. (UCIC) on May 27, flynas Co. on June 18, Specialized Medical Co. (SMC) on June 25, Sport Clubs Co. on July 8, Dar Al Majed Real Estate Co. (Al Majdiah) on Aug. 14, Marketing Home Group for Trading Co. on August 19, Cherry Trading Co. on Nov. 12, Almasar Alshamil Education Co. on Nov. 18, and Consolidated Grünenfelder Saady Holding Co. (CGS) on Nov. 26.

Tadawul witnessed 14 IPOs last year, following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. (Tasheel) on Nov. 19, Almoosa Health Co. on Dec. 23, and Nice One Co. on Dec. 24.

Alramz had previously withdrawn from listing on the Nomu-Parallel Market in 2022 after the subscription date for qualified investors in 3.3 million shares had been set, with a price range of SAR 61 to SAR 67 per share.

Company Background

Alramz, founded in Riyadh in 2016, operates in real estate development, including the purchase, sale, and subdivision of land and properties; off-plan sales; property management and leasing of residential and non-residential assets; real estate brokerage; and general construction. Its activities also cover renovation, specialized contracting, site preparation, excavation, grading, foundation work, and building finishing, as well as operation and maintenance services for facilities it owns or manages.

The company’s activities also include site preparation and development, such as excavation and grading, foundation casting, building finishing, and the management of maintenance and operations for its buildings and related facilities.

Alramz’s revenue streams include unit sales, third-party development, rental income, sales of investment properties, and project sales to funds.

The company uses a flexible financing model, assessing internal cash flows before deciding whether to self-fund land acquisitions and project development. When internal liquidity is insufficient, it partners with investment funds operated by CMA-licensed managers.

Project Categories

Directly Owned Projects: Alramz owns 100% of the land and project, finances construction itself and retains all profit from unit sales. It also bears full responsibility for financing costs.

Projects Developed Through Funds: Alramz develops projects for CMA-licensed real estate funds—such as those managed by SNB Capital and Riyad Capital—while holding 17% to 52% stakes in the funds. Stakes are acquired through cash purchases, development services exchanged for units, land contributions in kind, or a mix of these methods. The company earns development fees, marketing fees, and commissions and may receive fund units in instead of cash fees.

Development-Only Projects: Alramz develops projects under agreements with landowners without holding any ownership stake.

Completed Projects

Over the past three years, the company has completed 22 projects comprising 1,426 units, with a total built-up area of 410,650 square meters (sqm). All units have been sold except for three units related to three different projects, as shown in the table below:

Directly Owned Projects

Over the past three years, Alramz has completed 13 directly owned projects comprising 683 units, with a total built-up area of 190,270 sqm, as shown in the table below:

Projects Developed Through Funds

During 2023 and 2024, the company completed eight fund-developed projects comprising 743 units, with a total built-up area of 220,400 sqm—two projects in 2023 and six in 2024, as shown in the table below:

Projects Under Development

As of Dec. 31, 2024, the company had 17 projects under development, including 14 residential projects with 3,262 units and three commercial projects totaling 525 units, as shown in the table below:

Projects Under Development Through Funds

Fund-developed projects still under construction include 98 units in 2025, 945 units in 2026, and 90 units in 2027, comprising apartments, villas, and offices. The saleable or leasable area is projected at 28,000 sqm in 2025, 170,300 sqm in 2026, and 21,100 sqm in 2027, with full completion targeted by the end of 2028.

Development-Only Projects

The company aims to develop 593 residential apartment units under the developer project model, with a total saleable area of 90,800 sqm. These projects are scheduled for full completion by the end of 2027, as shown in the table below: