Retal offered 30% of its issued share capital, or 12 million shares, for SAR 120 per share. The company allocated 90 % of its IPO shares to participating parties in the book-building process and 10% to individual investors across the GCC. The IPO comes on the back of a 10-year growth journey in Saudi Arabia, with Retal admitting that it is now well-positioned to take advantage of increasing market needs thanks to its scalable business strategy, allowing it to increase revenue for its shareholders as well as improving the standard of living for Saudi citizens in line with Vision 2030.
Retal CEO Abdullah bin Faisal bin Abdulaziz Al-Braikan said: “The growth prospect for Retal is evident through the growing demand for houses supported by the increasing availability of home financing and the Saudi Government’s plans to increase homeownership to 70% by 2030G.”
Why it matters
The Middle East has regained prominence thanks to IPOs such as the TECOM Group's IPO, which raised AED1.7b at a price of AED2.67 per share. IPOs from Riyadh to Abu Dhabi have raised $4.8b this year, compared to Europe's total of $3.9b. Middle Eastern countries seldom record healthy quarters, and Saudi Aramco largest-ever offering was the last time this occurred, making the current busy status of the region's IPO market highly noteworthy.