Saudi property firm Amlak plans first post-coronavirus Riyadh IPO

(June 15, 2020- ARAB NEWS)

RIYADH: Saudi real estate financing firm Amlak International said it will float 30 percent of its shares in Riyadh, in what will be the exchange’s first initial public offering (IPO) since the coronavirus crisis.

The Kingdom is encouraging more Saudi companies to list in a bid to deepen its capital markets as part of economic reforms aimed at reducing its reliance on oil revenues.
Amlak, which has assets of around SR3.1 billion ($826 million), said the final offer price would be announced on June 30 after a book-building process starting on June 22.

“Being a publicly listed company will give us more visibility among our clients, will help us build our business and will also help reduce our cost of capital and boost profitability considerably,” Amlak CEO Abdullah Al-Sudairy said.
Saudi Arabia’s NCB Capital is the sole financial adviser, bookrunner, underwriter and lead manager for the deal, which will have tranches for retail and institutional investors.
Major shareholders, which include the Saudi Investment Bank and Amlak Finance, a Dubai-based Islamic mortgage company, will be subject to a six month lock-up period.
“Driven by population growth and supportive government policy, housing demand in the Kingdom is expected to increase 188,000 units per year until 2021, increasing to 203,000 per year from 2022-2025 and to 219,000 per year from 2026-2029,” Amlak said in a statement.
Saudi retailer BinDawood Holding also plans to launch an initial public offering as early as this month, two sources with knowledge of the matter said.
The group, which controls supermarket chains Bindawood and Danube in the Kingdom, last year hired Goldman Sachs, JP Morgan Chase, NCB Capital and GIB to organize the deal, the sources said, with Moelis & Co. acting as a financial adviser.

Work begins on world’s largest cultural and heritage development in Saudi Arabia

(June 15, 2020- ARAB NEWS)

RIYADH: While many countries in the world have halted construction work and put projects on hold due to the pandemic, Saudi Arabia continues to move forward with its giga-projects, including the homeland of its forefathers, Diriyah.

Construction on the first phase of Diriyah Gate has resumed in the past few weeks as plans are set to transform the 7 sq/km Old Town into one of Saudi Arabia’s foremost historic cultural destinations, just 15 minutes from downtown Riyadh.
“The investments in massive upgrades and infrastructure are continuing despite the economic climate,” Danielle Ainslie, chief marketing officer at the Diriyah Gate Development Authority, told Arab News. “We have literally begun work in the world’s largest cultural and heritage development,” she said.
Ainslie considers work on a giga-project during this time as a “great global message.”
“There are economies that are still thriving, and Saudi Arabia is one of them. Irrespective of COVID-19, it is business as usual and the focus is on Vision 2030 and realizing Vision 2030,” Ainslie said.
The project is well on its way with a new addition to the team: Princess Deena Nahar Al-Saud recently joined as senior director of brand strategy and experience. With an extensive background in business development and a passion for branding, design and experience, she previously worked with the Saudi Commission for Tourism and National Heritage where she was a key member in the tourism visa team and led the “Open Hearts, Open Doors” tourism visa launch event.
Speaking to Arab News, she described Diriyah as her favorite location in the city, a space that she said “holds beautiful stories of the past and reminds me of our nation’s inspiring future.”
“Being in close proximity to At-Turaif always leaves me speechless. The walls surrounding Salwa Palace are extraordinary, and I am grateful to have started a journey that will showcase Diriyah to the world,” she said.
Inspired by At-Turaif, the UNESCO World Heritage Site that is the birthplace of the Kingdom of Saudi Arabia, Diriyah Gate will anchor a vision for the future on a jewel from the Saudi past. It will bring together Saudi’s foremost collection of culture, lifestyle, learning and hospitality. The mixed-used development will showcase 300-plus years of authentic history by delivering heritage experiences, empowering education, world-class entertainment, outstanding lifestyle and vibrant shopping and dining.