Saudi Arabia: Amlak to Launch IPO for 30 Percent of Share Capital

Published June 14th, 2020 - 11:00 GMT
Saudi Arabia: Amlak to Launch IPO for 30 Percent of Share Capital
Amlak’s objective is to be the Kingdom’s leading provider of Sharia-compliant real estate finance services. (Shutterstock)

Saudi Arabia-based Amlak International for Real Estate Finance has announced its intention to proceed with an Initial Public Offering (IPO) representing 30% of the company’s share capital on the Saudi Stock Exchange (Tadawul).

The offering will comprise 27,180,000 ordinary shares 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 December 25, 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.

Highlights of the offering:

• 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, SR 1.37 billion ($365 million) 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, a company statement said.

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, it added.

Abdullah Al Howaish, Chairman of Amlak International, said: “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,” he added.

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,” he explained.

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