Alandalus IPO opens for retail investors

Alandalus Property on Thursday opened its initial public offering (IPO) for retail investors who can buy up to 8.4 million shares for SAR 18 each.

The retail offering will end on December 23.

Financial institutional investors and retail investors are eligible to subscribe to 60 percent and 40 percent, respectively in the share sale.

In November, the company obtained the approval of the Saudi market regulator, the Capital Markets Authority, to float 21 million shares, or 30 percent of the capital.

The offering marks the fourth IPO on the Saudi exchange this year, following those of Saudi Ground Services (SGS), Middle East Paper Co. (MEPCO) and Saudi Company for Tools and Hardware (SACO).

The IPO is the first in the real estate development sector since 2010.

Alandalus was incorporated in 2006 as a Saudi closed joint stock company with SAR 238.9 million capital.

It operates in commercial real estate investment and development. The Riyadh-based company runs projects worth SAR 2 billion, including the Jeddah-based Alandalus Mall, Hayat Mall in Riyadh, and Dareen Mall in Dammam.

The developer’s portfolio comprises several projects under development, namely Staybridge Suites Hotel Alandalus Mall, Sahafa Center, Tilal Center and Yarmouk Center.

The company is also planning to set up the Alandalus Square project in Jeddah, which will include office, hotel, and residential towers.

It has also partnered with Mohammad Alhabib Real Estate Co. and Bouroj International to build the Panorama North Jeddah Project. It also invests in Prince Majid Center in Jeddah, which is scheduled for completion and operation in the second and third quarters of 2017, respectively.