AI Summary
Logo of Dar Al Majed Real Estate Co. (Al Majdiah)
Retail investors will started today, Aug. 14, subscription to 18 million shares of Dar Al Majed Real Estate Co. (Al Majdiah) at SAR 14 each.
The shares offered to retail investors represent 20% of the total floated shares.
The retail offering will end on Aug. 18.
In March, the Capital Market Authority (CMA) approved the company’s application to float 90 million shares on the Main Market (TASI), representing 30% of its SAR 300 million capital, divided into 300 million shares at a par value of SAR 1 each.
The institutional offering ended last week, with a coverage ratio of 107x.
This is the eighth IPO on TASI this year after Derayah Financial on Feb. 20, Entaj on Feb. 26, and Masar on May 5. This is in addition to United Carton Industries Co. (UCIC) on May 27, flynas on June 18, Specialized Medical Co. (SMC) on June 25 and Sport Clubs Co. on July 8.
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. (Tasheel) on Nov. 5, United International Holding Co. on Nov. 19, Almoosa Health Co. on Dec. 23 and Nice One Co. on Dec. 24.
Company Profile
Incepted in 2014, Al Majdiah is a Riyadh-based closed joint-stock company, boasting an issued capital of SAR 300 million. It converted from a limited liability firm in 2023 and is active in the real estate sector.
By the end of the first nine months of 2024, the company had sold about 1,421 residential units and held 215,000 square meters of saleable land. Projects under construction as of September 2024 exceeded SAR 1.2 billion. Performance indicators for the years 2021 to 2023 and the first nine months of 2024 are shown in the following table:
|
Key Performance Indicators |
||||
|
Metric |
2021 |
2022 |
2023 |
9M 2024 |
|
Units sold |
874 |
1,176 |
1,220 |
1,421 |
|
Units developed |
1,238 |
1,899 |
1,366 |
1,238 |
|
Saleable area (’000 sqm) |
116.74 |
170.82 |
171.48 |
214.95 |
|
Avg. revenue per unit (SAR ’000) |
850.83 |
1,002.13 |
1,088.44 |
1,097.35 |
|
Net profit (SAR mln) |
286.85 |
109.51 |
147.38 |
181.50 |
|
Real estate inventory (SAR mln) |
335.25 |
275.79 |
589.58 |
542.76 |
|
Land sold (sqm) |
54,174 |
34,720 |
2,304 |
27,181 |
|
Projects under construction (SAR mln) |
852.23 |
1,420.57 |
905 |
1,251.85 |
As of Sept. 30, 2024, the company held 354 completed and unsold units, comprising apartments and townhouses. This included 307 directly owned units expected to be sold in 2025.
Projects developed through investment funds accounted for 50% of total revenue by September 2024, while company-owned projects contributed 46%, joint ventures 3%, and third-party developments 13%.
|
Completed Units for Sale (End of September 2024) |
||||
|---|---|---|---|---|
|
Project |
Category |
Type |
Location |
Book Value |
|
Al Majdiah 129 |
Owned |
Apartments |
Al Qamrah |
13 |
|
Al Majdiah 130 |
Owned |
Apartments |
Al Yasmin |
1 |
|
Al Majdiah 138 |
Owned |
Apartments |
Al Nuzha |
3 |
|
Al Majdiah 140 |
Owned |
Apartments |
Al Narjis |
1 |
|
Al Majdiah 142 |
Owned |
Apartments |
Al Narjis |
3 |
|
Al Majdiah 143 |
Owned |
Apartments |
Al Hamra |
26 |
|
Al Majdiah 144 |
Owned |
Apartments |
Al Narjis |
8 |
|
Al Majdiah 146 |
Owned |
Apartments |
Al Narjis |
2 |
|
Al Majdiah 148 |
Joint |
Townhouses & Villas |
Al Narjis |
127 |
|
Al Majdiah 154 |
Joint |
Townhouses & Villas |
Al Narjis |
117 |
|
Al Majdiah 156 |
Fund-developed |
Apartments |
Al Nada |
61 |
|
Al Majdiah 181 |
Fund-developed |
Offices |
Al Qirawan |
75 |
|
Majaz |
Fund-developed |
Offices |
Al Janadriyah |
83 |
|
Al Majdiah 127 |
Fund-developed |
Apartments |
Al Malqa |
3 |
|
Al Majdiah 132 |
Fund-developed |
Apartments |
Al Murooj |
16 |
|
Al Majdiah 133 |
Fund-developed |
Apartments |
Al Qamrah |
107 |
|
Al Majdiah 147 |
Fund-developed |
Apartments |
Al Narjis |
207 |
|
Al Majdiah 139 |
Fund-developed |
Apartments & Townhouses |
Tilal Al Riyadh |
22 |
|
Al Majdiah 145 |
Fund-developed |
Apartments |
Al Aqiq |
4 |
|
Al Majdiah 155 |
Fund-developed |
Apartments |
Irqah |
23 |
Al Majdiah owns nine subsidiaries and three real estate funds with varying ownership stakes, including five wholly owned subsidiaries. It also fully owns Al Majdiah Investment Fund, with a capital of SAR 1 billion.
|
Al Majdiah Real Estate Funds and Subsidiaries |
|||
|---|---|---|---|
|
Entity |
Capital (SAR mln) |
Direct Ownership |
Indirect Ownership |
|
Mohammed & Khaled Sons of Abdulrahman Al Majed Real Estate Co. |
60.00 |
100% |
— |
|
Hussam & Majed Sons of Abdulrahman Al Majed Real Estate Co. |
15.00 |
100% |
— |
|
AlRaeah Real Estate Co. |
0.10 |
100% |
— |
|
AL FKRAA Investment for Development & Real Estate Investment Co. |
0.10 |
100% |
— |
|
Nibras Real Estate Development Co. |
0.10 |
100% |
— |
|
Taj AlHodou for Development & Real Estate Investment Co. |
0.10 |
100% |
— |
|
Jadat AlShat’e Real Estate Co. |
0.50 |
70% |
— |
|
Jadat AlRabe’a Real Estate Co. |
0.10 |
25% |
— |
|
Burj Al Raea Real Estate Co.* |
— |
— |
50% |
|
AlMajdiah Investment Fund |
1,000.00 |
100% |
— |
|
Aldar Investment Fund |
2,000.00 |
27% |
43% |
|
Alnarjis Real Estate Fund |
500.00 |
63.53% |
— |
*Capital: SAR 500.
|
Company Info |
|
|
Company |
Dar Al Majed Real Estate Co. (Al Majdiah) |
|
Core Activities |
Real estate |
|
Capital |
SAR 300 mln |
|
No. of Shares |
300 mln |
|
Nominal Value |
SAR 1/share |
|
IPO Info |
|
|
Offering Percentage |
30% of capital |
|
Offering Size |
90 mln shares |
|
Retail Tranche |
18 mln shares (20%) |
|
Minimum Subscription (Institutions) |
250,000 shares |
|
Maximum Subscription (Institutions) |
14.99 mln shares |
|
Minimum Subscription (Individuals) |
10 shares |
|
Maximum Subscription (Individuals) |
2.5 mln shares |
|
Retail Subscription Period |
Aug. 14-18, 2025 |
|
Final Allocation |
Aug. 20, 2025 |
|
Surplus Refund (if any) |
Aug. 21, 2025 |
|
Major Shareholders |
||||
|
Shareholders |
Pre-IPO |
Post-IPO |
||
|
No. of Shares (mln) |
Ownership Stake |
No. of Shares (mln) |
Ownership Stake |
|
|
Dar Al Majed Holding |
173.25 |
57.57% |
121.27 |
40.43% |
|
Rufaid Modern Investment Co. |
22.5 |
7.5% |
15.75 |
5.25% |
|
AWJ Real Estate Development & Investment Co. |
22.5 |
7.5% |
15.75 |
5.25% |
|
Other shareholders |
81 |
27.43% |
57.23 |
19.1% |
|
Public |
-- |
-- |
90 |
30.0% |
|
Total |
300 |
100 % |
300 |
100% |
|
Additional Information |
|
|
Financial Advisor, Lead Manager, Underwriter & Bookrunner |
BSF Capital |
|
Receiving Agents |
Derayah Financial, Alinma Capital, Al Rajhi Capital, SNB Capital, Riyad Capital, ANB Capital, Alistithmar Capital, AlJazira Capital, GIB Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, BSF Capital, Yaqeen Capital, Albilad Capital, Musharaka Capital, EFG Hermes KSA, and Awaed Capital |
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