IPO Monitor | SAR 14/Share IPO Opens Today: AlMajdiah Got 107x Institutional Demand. Grab Yours!
ALMAJDIAH 4326.SA | 8.35 | +0.60% |
Tadawul IPO Index TIPOC.SA | 4206.31 | +1.55% |
Tadawul All Shares Index TASI.SA | 11589.05 | +0.90% |
Riyadh, Saudi Arabia – August 14, 2025 | Dar AlMajed Real Estate Company (AlMajdiah), a leading Saudi Arabian real estate developer, has successfully completed its institutional book-building process and is now preparing to open retail subscriptions for its highly anticipated Initial Public Offering. The company has demonstrated strong investor confidence with institutional demand exceeding supply by 107 times.
Key IPO Information:
- Retail Subscription Starts: Thursday, August 14, 2025 (20/02/1447H)
- Subscription Period: 3 working days (closes Monday, August 18, 2025)
- Final Offer Price: SAR 14 per share
- Total Shares Offered: 90 million ordinary shares
- Ownership Percentage: 30% of company's share capital
- Institutional Book-Building: Oversubscribed at 107 times coverage
Offering Structure:
The IPO received regulatory approval from the Capital Market Authority on March 20, 2025, along with listing approval from the Saudi Stock Exchange (Tadawul). With institutional subscriptions covered 107 times over, company CEO Engineer Sulaiman bin Ali Al-Ayed emphasized that this strong investor response reflects confidence in Dar AlMajed's focus on constructing modern residential and commercial buildings with smart systems and advanced security solutions, aligning with global lifestyle trends.
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 |
Company Overview
AlMajdiah has established itself as a dominant force in Saudi Arabia's real estate sector, backed by over 50 years of founding shareholders' experience. The company's track record speaks volumes: more than 180 completed projectsencompassing 18,000+ units that house over 70,000 residents as of December 2024.
Six Key Investment Strengths
1. Market Leadership & Brand Power
The AlMajdiah brand represents trust and reliability in Saudi real estate. The company has consistently exceeded market expectations through on-time delivery of high-quality projects, particularly cementing its leadership position in Riyadh. Strong customer relationships result in repeat buyers and referrals, supported by excellent after-sales services including repairs, facility management, and responsive customer feedback systems.
2. Strategic Location Access
AlMajdiah's competitive edge lies in its deep market understanding, enabling the company to identify and secure land parcels in high-demand areas. The company strategically selects properties in the most coveted neighborhoods known for desirability and strong appreciation potential, making projects highly attractive to both investors and families.
3. Exceptional Project Execution
Recent performance demonstrates remarkable execution capability: over 5,000 housing units delivered during 2022-2024, plus an additional 1,238 units completed in just the first three months of 2025. This success is driven by two core elements:
- In-house team of highly skilled engineers and supervisors ensuring quality and timeline adherence
- Strategic partnerships with leading local, regional, and global design and construction firms
4. Uncompromising Quality Standards
Quality serves as AlMajdiah's primary competitive differentiator. Every project reflects exceptional standards through precise design and construction protocols, refined architectural designs, and integrated living environments. The company's commitment to innovation and sustainability delivers real estate products that combine attractiveness, efficiency, and longevity.
5. Diversified Strategic Partnerships
AlMajdiah has established a robust financing ecosystem including:
- SAR 1.5 billion fund with a semi-governmental entity subsidiary
- Partnership with Al Madinah municipality for the Meshraf AlMajdiah Project (199,906 sqm)
- Agreement with National Housing Company for residential development (currently developing five projects across 349,323 sqm)
- Collaborations with major investment managers (Jadwa, Blom, Musharaka Capital) resulting in 2,000+ units developed and sold, with 1,100+ additional units under development
6. Digital Innovation Leadership
The company has strategically invested in IT infrastructure to enhance operational efficiency and decision-making speed. Digital transformation initiatives have streamlined procedures, improved customer experience, and enabled more accurate, rapid service delivery, strengthening AlMajdiah's market responsiveness and operational flexibility.
The summaries above are sourced from AlMajdiah's IPO documents.
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.