Amlak International Announces Intention to List on Saudi Stock Exchange
Amlak International for Real Estate Finance (“Amlak”, “Amlak International” or “the Company”), Saudi Arabia’s leading non-bank real estate finance company, announces its intention to proceed with an Initial Public Offering (the “IPO” or the “Offering”) on the Main Market of the Saudi Stock Exchange (“Tadawul”). The Offering will comprise 27,180,000 Ordinary Shares. The Offer Shares represent 30% of the Company’s Share Capital, and the Net Proceeds of the Offering will be paid to the Selling Shareholders on a pro-rata basis. The Capital Market Authority (“CMA”) issued its resolution on 25 December 2019, approving the application for the offering. The Company has appointed NCB Capital Company as Sole Financial Advisor, Sole Bookrunner, Sole Underwriter and Lead Manager in relation to the Offer Shares.
OVERVIEW OF AMLAK INTERNATIONAL
- Amlak International is a Saudi non-bank real estate finance company established in 2007 and licensed by the Saudi Arabian Monetary Authority (“SAMA”) in 2013 to provide Sharia-compliant real estate financing solutions to corporate (including high-net-worth-individuals “HNWIs”) and individual clients.
- Among the most efficient in its sector with Earnings Before Tax (“EBT”) margin of 34.4% in 2019 and 44% in Q1 2020
- Strong and stable payout record with 42% of capital paid back in cash dividends since 2013
- State-of-the-art Temenos T24 technology platform enables efficient scalability of operations
- Resilient and predictable revenues from diverse corporate and individuals real estate financing portfolio
- Robust capital base and low debt/equity ratio of 1.88x with headroom for growth, SAR 1.37 billion in unutilized bank facilities as at Q1 2020
- Amlak’s objective is to be the Kingdom’s leading provider of Sharia-compliant real estate finance services, and to achieve balanced and steadily increasing revenues, thereby cementing its leadership position within the Saudi real estate finance industry.
- The Company benefits from a highly-experienced management team, responsible for implementation of strategy, achieving positive and stable performance along with high levels of operational efficiency.
Mr. Abdullah Al Howaish, Chairman of Amlak International, commented:
“The announcement of our intention to list on Tadawul is a historic moment for the Company, with the forthcoming IPO a testament to our commitment to future growth. Amlak International plays a leading role in Saudi Arabia’s burgeoning non-bank real estate financing industry, and has positioned itself to take full advantage of the opportunities that today’s market presents. Our listing on Tadawul marks a new chapter in the story of the Company, and the Board has every expectation that management and staff will fulfil the trust that the market places in us. We look forward to delivering on the strategic roadmap we have set out for the years ahead.”
Mr. Abdullah Al Sudairy, Chief Executive Officer at Amlak International, said:
“We are ready to capture a growing number of opportunities, in particular those provided by the positive market dynamics created by the Kingdom’s Vision 2030 reform programme. Among our most important competitive advantages is our diverse lending portfolio, which covers the full corporate and individuals spectrum. This will enable Amlak to build on its strong position in the corporate real estate financing segment, while supporting Saudi nationals in their ambitions to buy and build homes. Demand for real estate financing is accelerating, and our substantial funding base and first-class technology platform put us in a position to increase momentum.”
This announcement is not a prospectus and not an offer of securities for sale or subscription in any jurisdiction, including in or into the United States, Canada, Japan or Australia. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. Any offer to acquire shares pursuant to the proposed offering (the "Offering") will be made, and any investor should make his investment decision solely on the basis of the information that is contained in the prospectus (the “Prospectus”) to be published by Amlak International for Real Estate Finance Company (as defined below) in due course in connection with the admission of its ordinary shares (“Shares”) to trading on the Saudi Stock Exchange (“Admission”). Copies of the Prospectus will, following publication, be available from Amlak International for Real Estate Finance Company’s registered office and its website at: www.amlakint.com.
Amlak Finance PJSC is a leading specialized real estate financier in the Middle East. Since its establishment in November 2000 as the region’s pioneer financial services provider, it has provided its customers with innovative, Sharia-compliant property financing products and solutions designed to meet the rapidly evolving market demands.
It was first established as a private shareholding company in Dubai, United Arab Emirates, in accordance with UAE Federal Law. In 2004, it was converted to a Public Joint Stock Company.