Retail tranche of Al Ramz IPO to open next week

Subscription to the retail tranche of Al Ramz Real Estate Company’s initial public offering will begin on December 7 and run for three days.

The tranche, which comprises of 20 percent of the 12.9 million shares offered, will be issued after the total value of applications placed during the book-building process for institutional investors exceeds SAR10 billion ($2.7 billion), an oversubscription of 11 times.

The IPO final price was set at SAR70 per share, the top end of the previously announced price range, implying a market capitalisation of SAR3 billion on listing on the main market, the Tasi.

The company will raise SAR900 million by selling 30 percent of its share capital, or 12.86 million shares.

It will use 37 percent of the IPO proceeds to develop projects, 36 percent to finance investments in real estate funds, 23 percent for general purposes and 4 percent to cover offering expenses, according to its prospectus.

Further reading:

• Saudi developer Al Ramz to raise up to $240m from IPO
• Turkish developers target Saudi real estate market
• Medina off-plan apartment sales to begin next year

Al Ramz Real Estate began operations in Riyadh in 2016 and converted to a closed joint-stock company in 2021, according to its website.

The company reported revenues of SAR952 million in 2024, up 79 percent year on year, while net profit rose 25 percent to SAR158 million.

Its portfolio comprises of more than 40 completed and under-development projects from 2022 to the first half of 2025 across six cities in the kingdom.