Dar Al Majed IPO Oversubscribed by 278%, Attracts $187 Million in Orders

Aug 22, 2025 at 5:11 AM

Dar Al Majed IPO Oversubscribed by 278%, Attracts $187 Million in Orders

The retail portion of Saudi Arabian real estate company Dar Al Majed (Almajdiah) IPO was oversubscribed by 278%, with investors placing nearly $187 million (SAR 701 million) in orders during the three-day subscription that ended on August 18.

A total of 307,019 retail investors took part, buying shares at the final price of $3.7 (SAR 14) each. Every investor received at least 10 shares. Extra shares (rump shares) were distributed proportionally, with an average allocation rate of 31.8%.

Sinad Holding, a Saudi company, invested $24.8 million (SAR 93.3 million) in the IPO, equal to about 6.7 million shares. This cornerstone investment represents around 2.2% of Almajdiah’s capital.

After the retail results, Almajdiah announced that the institutional allocation will be reduced to 72 million shares, or 80% of the total IPO.

Overall, Almajdiah is offering 90 million shares, equal to 30% of its capital. At the final share price, the company’s market value is expected to be about $346.4 million (SAR 1.3 billion).

Earlier this month, Almajdiah’s IPO drew huge demand, with $36 billion in orders, fully booked within minutes of opening, according to Bloomberg.

Saudi Fransi Capital is acting as the financial advisor, lead manager, underwriter, and bookrunner, while BSF Capital is helping arrange the deal.

Saudi IPO Market in 2025

Saudi Arabia raised about $2.8 billion from IPOs in the first half of 2025, with six companies listing on the main market.

flynas, a budget airline, raised $1.1 billion on June 1 by offering 51.3 million shares (30% of its capital). Institutional demand was nearly 100 times oversubscribed, while retail was covered 349.7%.
Umm Al-Qura for Development and Construction raised $523.1 million in March, offering 130.8 million shares (9.1% of its capital) at $4 (SAR 15) each to support its Masar project in Makkah.
Specialized Medical Company raised $500 million in June, selling 75 million shares (30% of capital) at $6.7 (SAR 25) each.
Derayah Financial raised $399.6 million in February, selling almost 50 million shares (20% of its capital) at $8 (SAR 30).