Riyadh – Mubasher: The initial public offering (IPO) of Al Rajhi Real Estate Investment Traded Fund (Al Rajhi REIT Fund) has ended with 174% oversubscription, Al Rajhi Capital said on Wednesday.
The fund’s volume is SAR 1.620 billion of which about SAR 427 million were gone public (42.7 million units at a par value of SAR 10 per unit) from 1 January until 14 January.
Subscribers’ number reached 90,561, while Al Rajhi REIT Fund's IPO raised SAR 740 million.
A minimum of 100 units will be allocated for each subscriber and the remaining units will be allocated on a pro-rata basis to those who have subscribed for more than the minimum 100 units at a rate of 52%.
“The investor acceptance of our REIT reinforces that ARC’s robust real estate investment process has resonated well with investors,” CEO of Al Rajhi Capital Gaurav Shah said.
“We will continue to focus on real estate assets with long-term fixed contracts occupied by solid tenants in attractive sectors to deliver predictable returns in the years to come,” Shah added.
Al Rajhi REIT Fund aims to invest in income-generating assets over the medium to long-term.
After the IPO, Al Rajhi Capital will own 10% stake in the fund.
Al Rajhi Bank's unit will not sell any unit after two years from the IPO’s date.
