Riyadh-Mubasher: Al Andalus Property Co. (APC) has room for growth due its expansion plan, added to its diversified strategy in the ‘recurring income’ generating segments, MubasherTrade said in a report.
However, current economic challenges may negatively affect the company’s performance, the research firm added.
APC ranked among the largest companies in terms of market share as it holds a market share of c.6% in Jeddah, 5% in Khobar and Dammam and 5.3% in Riyadh.
The company plans to increase the current leasing area by about 60% to reach 372,000 sq m in 2020.
APC diversified its operations by entering other sectors, such as the hospitality and the medical sectors with partnerships with strong developers.
"Following the cabinet’s approval of the 2.5% tax on ‘white land’, we expect land prices to decline, thus allowing APC to acquire new land plots for new projects at lower prices," MubasherTrade said.
However, the company owns 17,202 sqm of unutilised land in Alandalus Square, which might be exposed to this same tax rate, it added.
The par value reached SAR 10 and the book value per share (BVPS) stood at SAR 11.89 at the end of Q2-15.
The developer is floating 21 million out of its 70 million shares at SAR 18 each for individuals and institutions.
A maximum of 40% of the offered shares will be allocated to individuals, while the remaining shares will be allocated to institutions, with no maximum limit.
The book building for institutions was covered by 1092% at SAR 18 a share.
The IPO for individuals on 8.4 million shares runs from 17-23 December 2015.
