IPO Monitor | IPO Opportunity: AlMajdiah Housing 70K People Goes Public Next Week (Book Building)

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AlMajdiah IPO Overview

Dar AlMajed Real Estate Company (AlMajdiah), a leading real estate development company in Saudi Arabia, has announced its intention to go public through an Initial Public Offering (IPO) on the Saudi Stock Exchange's Main Market (Tadawul).

Key IPO Details

The company received approval from the Capital Market Authority in March 2025 to offer 90 million ordinary shares, representing 30% of its total share capital. These are existing shares being sold by current shareholders rather than new shares issued by the company.

The IPO structure follows a standard approach where the company itself will not receive any proceeds from the offering. Instead, all net proceeds after expenses will go to the selling shareholders based on their proportional share sales.

Timeline and Process

The share pricing will be determined through a book building process scheduled to run from July 29 to August 4, 2025. This institutional investor phase will establish the final offer price before retail subscription begins. And the retail subscription period will be starting from Thursday, August 14, and closing on Monday, August 18.

Trading on Tadawul's Main Market is expected to commence following completion of the IPO and regulatory procedures.

This IPO represents another significant addition to Saudi Arabia's growing public equity market, as the Kingdom continues to encourage more domestic companies to list publicly as part of its broader economic diversification goals.

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO

IPO Summary

Category	Details
Company Name	Dar Al Majed Real Estate Co. (Al Majdiah)
Market	Main Market (TASI)
Core Activities	Real estate activities
Capital	SAR 300 Million
Total Shares	300 Million
Par Value	SAR 1 per share
Issue Percentage	30% of the Company’s share capital
Number of Offered Shares	90 Million
Qualified Subscribers	Participating institutions & Retail investors
Total Number of Shares Offered to Retail Investors	18 Million shares (20% of the offering size)
Minimum Number of Offer Shares to be Applied for by Individual Investors	10 shares
Maximum Number of Offer Shares to be Applied for by Individual Investors	2.5 Million shares
Minimum Number of Offer Shares to be Applied for by Institutional Investors	250,000 shares
Maximum Number of Offer Shares to be Applied for by Institutional Investors	14.99 Million shares

About AlMajdiah:

Sheikh Abdulrahman bin Nasser AlMajed began his investment in real estate activities in 1969G. This marked the beginning of launching multiple family companies that operate based on an integrated vision in the real estate sector in the Kingdom.

In 1999G, family members, Mohammed and Khaled, sons of Sheik Abdulrahman bin Nasser AlMajed, commenced selling land plots and various construction activities, which contributed to the deepened family presence in the Saudi real estate market.

In 2014G, the Company was established under the name Nasser and Abdulsalam Abdulrahman AlMajed Real Estate Company.

The various family companies achieved significant and continuous success. In 2020G, the family decided to strengthen their efforts by restructuring the Group by acquiring the subsidiaries under the umbrella of Nasser and Abdulsalam Abdulrahman AlMajed Real Estate Company, aiming to achieve operational and administrative integration. This direction came as part of enhancing institutional efficiency and expanding the Company’s scope of work within the real estate development sector. The Company's name was changed to Dar AlMajed Real Estate Company, inspired by the values and principles that had been proven to be successful in previous phases.

As of 2024, AlMajdiah has developed over 2.5 million square meters, encompassing more than 180 completed projects, housing over 70,000 residents in more than 18,000 units.

AlMajdiah is continuing its business in developing various residential real estate projects, focusing on meeting the needs of the local market through urban solutions based on thoughtful planning and modern standards.

Investor Groups

Tranche A: Institutional Investors (Participating Parties)

Initial Allocation: 90 million shares (100% of offering) Minimum Allocation: 72 million shares (80% of offering)

This tranche targets qualified institutional investors who participate in the book-building process. The financial advisor retains flexibility to reduce institutional allocation to accommodate retail demand, but institutions are guaranteed at least 80% of the total offering.

Share distribution within this tranche will follow a discretionary allocation mechanism, allowing the financial advisor to determine appropriate allocations in consultation with the company.

Tranche B: Individual Retail Investors

Target Allocation: 18 million shares (20% of offering) Maximum Potential: 18 million shares (if institutional tranche reduced to minimum)

Retail participation is open to:

Saudi nationals (including Saudi divorced/widowed women with minor children from non-Saudi marriages, who may subscribe for themselves and their children)
Non-Saudi residents of Saudi Arabia
GCC nationals and residents

All participants must maintain active investment accounts with authorized receiving agents or be eligible to open such accounts with licensed capital market institutions.

Important Restrictions

The system includes safeguards against subscription irregularities - duplicate applications will be rejected (only first submission accepted), and proxy subscriptions by non-eligible parties are prohibited and subject to regulatory penalties.

If retail demand falls short of the allocated 18 million shares, the financial advisor may proportionally reduce the retail allocation and redistribute those shares to institutional investors.

Direct Substantial Shareholders and Ownership Percentages held thereby Pre- and Post-Offering

The following table sets out the names as well as pre-Offering and post-Offering ownership percentages of Substantial Shareholders (i.e., any Shareholder owning 5% or more of the Company's Shares).

	Pre-Offering			Post-Offering
Shareholder Name	No. of Shares	Par Value (SAR)	Direct Ownership	No. of Shares	Par Value (SAR)	Direct Ownership
Dar AlMajed Holding Company	173,250,000	173,250,000	57.75%	121,275,000	121,275,000	40.43%
AWJ Real Estate Development and Investment Company	22,500,000	22,500,000	7.5%	15,750,000	15,750,000	5.25%
Rufaid Modern Investment Company	22,500,000	22,500,000	7.5%	15,750,000	15,750,000	5.25%
Total	218,250,000	218,250,000	72.75%	152,775,000	152,775,000	50.93%

Indirect Substantial Shareholders and Ownership Percentages held thereby Pre- and Post-Offering

	Pre-Offering			Post-Offering
Shareholder Name	No. of Indirect Shares	Par Value (SAR)	Indirect Ownership	No. of Indirect Shares	Par Value (SAR)	Indirect Ownership
Khaled Abdulrahman AlMajed	31,807,875	31,807,875	10.60%⁽¹⁾	22,265,512	22,265,512	7.42%
Mohammed Abdulrahman AlMajed	31,807,875	31,807,875	10.60%⁽²⁾	22,265,513	22,265,513	7.42%
Nasser Abdulrahman AlMajed	31,065,375	31,065,375	10.36%⁽³⁾	21,745,763	21,745,763	7.25%
Abdulsalam Abdulrahman AlMajed	31,065,375	31,065,375	10.36%⁽⁴⁾	21,745,763	21,745,763	7.25%
Hussam Abdulrahman AlMajed	31,065,375	31,065,375	10.36%⁽⁵⁾	21,745,763	21,745,763	7.25%
Majed Abdulrahman AlMajed	31,065,375	31,065,375	10.36%⁽⁶⁾	21,745,762	21,745,762	7.25%
Total	187,877,250	187,877,250	62.63%	131,514,076	131,514,076	43.84%

Mr. Khaled bin Abdulrahman bin Nasser AlMajed has an indirect ownership percentage of 10.60% pre-Offering, as a result of an ownership percentage of 16.67% and 19.75% in Dar AlMajed Holding Company and AlMajd AlAwla Real Estate Company, which in turn owns 57.75% and 4.95% of the Issuer's Shares pre-Offering, respectively.
Mr. Mohammed Abdulrahman AlMajed has an indirect ownership percentage of 10.60% pre-Offering, as a result of an ownership percentage of 16.67% and 19.75% in Dar AlMajed Holding Company and AlMajd AlAwla Real Estate Company, which in turn owns 57.75% and 4.95% of the Issuer's Shares pre-Offering, respectively.
Mr. Nasser bin Abdulrahman bin Nasser AlMajed has an indirect ownership percentage of 10.36% pre-Offering, as a result of an ownership percentage of 16.67% and 14.75% in Dar AlMajed Holding Company and AlMajd AlAwla Real Estate Company, which in turn owns 57.75% and 4.95% of the Issuer's Shares pre-Offering, respectively.
Mr. Abdulsalam bin Abdulrahman bin Nasser AlMajed has an indirect ownership percentage of 10.36% pre-Offering, as a result of an ownership percentage of 16.67% and 14.75% in Dar AlMajed Holding Company and AlMajd AlAwla Real Estate Company, which in turn owns 57.75% and 4.95% of the Issuer's Shares pre-Offering, respectively.
Mr. Hussam Abdulrahman AlMajed has an indirect ownership percentage of 10.36% pre-Offering, as a result of an ownership percentage of 16.67% and 14.75% in Dar AlMajed Holding Company and AlMajd AlAwla Real Estate Company, which in turn owns 57.75% and 4.95% of the Issuer's Shares pre-Offering, respectively.
Mr. Majed bin Abdulrahman bin Nasser AlMajed has an indirect ownership percentage of 10.36% pre-Offering, as a result of an ownership percentage of 16.67% and 14.75% in Dar AlMajed Holding Company and AlMajd AlAwla Real Estate Company, which in turn owns 57.75% and 4.95% of the Issuer's Shares pre-Offering, respectively.

Expected Offering Timetable

Expected Offering Timetable	Date
Offering Period for Participating Parties and Book-Building Process	Five (5) days Starting from Tuesday 04/02/1447H (corresponding to 29/07/2025G) and closing on Monday 10/02/1447H (corresponding to 04/08/2025G).
Submission Period for Individual Subscribers	Starting from Thursday 20/02/1447H (corresponding to 14/08/2025G) and closing on 24/02/1447H (corresponding to 18/08/2025).
Deadline for submission of Subscription Application Forms by Participating Parties based on the initial allocation of Offer Shares	Sunday 16/02/1447H (corresponding to 10/08/2025G).
Deadline for submission of Subscription Application Forms and payment of the subscription monies by Individual Subscribers	Monday 24/02/1447H (corresponding to 18/08/2025G).
Deadline for payment of subscription money by Participating Parties based on their initially allocated Offer Shares	Thursday 20/02/1447H (corresponding to 14/08/2025G).
Announcement of final Offer Shares allotment	Wednesday 26/02/1447H (corresponding to 20/08/2025G).
Refund of excess subscription monies (if any)	Thursday 27/02/1447H (corresponding to 21/08/2025G).
Expected trading commencement date for the Shares on the Exchange	Trading of the Offer Shares on the Exchange is expected to commence after all relevant legal requirements and procedures have been fulfilled. Trading will be announced on the Saudi Exchange website (www.saudiexchange.sa).

Note: The above timetable and dates therein are indicative. Actual dates will be communicated on the Saudi Exchange website (www.saudiexchange.sa), the Company's website (almajidiah.com) and the website of the Financial Advisor and Lead Manager (www.bsfcapital.sa).

Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO

Further updates regarding this IPO will be provided as more information becomes available.

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