Al Majdiah offering price set at SAR 14/share on Tadawul

Logo of Dar Al Majed Real Estate Co. (Al Majdiah)

BSF Capital, in its capacity as the financial advisor, lead manager, and institutional bookrunner for the initial public offering (IPO) of Dar Al Majed Real Estate Co. (Al Majdiah), announced the successful completion of the book-building process for the institutional tranche.

The final price of the IPO on the Main Market (TASI) was set at SAR 14 per share, with the offering oversubscribed 107 times, according to a Tadawul statement.

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The participating entities subscribed to the entire offering, with 90 million ordinary shares allocated to them, representing 100% of the shares offered in the first phase.

Following the successful completion of the book-building process, the company said that up to 20% of the total offered shares will be allocated to individual subscribers.

The IPO price range was set between SAR 13.50 and SAR 14 per share, according to data available with Argaam.

The bookbuilding for the institutional tranche ran from July 29 until Aug. 4.

Al Majdiah intends to offer 90 million shares on TASI, representing 30% of the company's capital of SAR 300 million, divided into 300 million shares each at a SAR 1 par value.

The retail tranche will begin on Aug. 14, ending on Aug. 18. A total of 18 million shares, or 20% of IPO, was allocated to individuals.