Shaping the
future of Saudi Arabia

Retal announces its intention to float on

the Saudi Stock Exchange (Tadawul)

 

Retal Urban Development Co. (“Retal” or the “Company”) is a next generation real estate developer of integrated master plan communities offering a premium portfolio of lifestyle-oriented residential, commercial, and mixed-use properties. Since Retal’s inception in 2012, the Company has played a key role in the development of the real estate market in the Kingdom of Saudi Arabia. 

Retal’s business model is scalable and is principally focused on off-plan sales in premier locations across the Kingdom. Through its fully owned subsidiaries, the Company offers a full-service integrated platform, delivering solutions across the value chain including project management, contracting, facilities management, and property management. 

 

Retal has an engaged and experienced leadership team that generates superior returns and with strategic partnerships and strong economic and demographic opportunities over the long-term, Retal is poised to be Saudi Arabia’s homebuilder champion for years to come.

 

On the 9 May 2022, Retal formally announced its Intention to Offer 30% of its share capital to the public through an initial public offering (“IPO”) and listing its shares on the Main Market of the Saudi Exchange. Institutional and retail investors will be allowed the opportunity to acquire shares and participate in the long-term growth plans of the Company and the Saudi real estate market.

From Leadership 

“I am delighted to announce our intention to list on the Saudi Exchange through an IPO. This marks a significant milestone in the growth trajectory of our business and a key step towards further solidifying our leading position in the Saudi real estate sector. Our potential listing comes at an exceptionally exciting time as we continue to make remarkable strides towards opening up to the world, creating new opportunities, and elevating the lifestyle of every Saudi family as part of the Vision 2030.”

Abdullah bin Abdullatif bin Ahmed Al-Fozan

Chairman of Retal

“We are already witnessing a huge demand for high quality developments in desirable destinations across the country and we anticipate this demand to continue, driven by strong economic trends, favorable long-term demographics, and Saudi’s commitment to transform the real estate landscape and improve the standard of living in the country. With Retal’s robust strategy, expertise, and financial strength, we are poised to capture these exciting opportunities while delivering excellent value to our shareholders.”

Eng. Abdullah bin Faisal bin Abdulaziz Al-Braikan

Chief Executive Officer of Retal

+

total projects executed  

K

total units executed & under construction

BN SAR

Value of total projects (completed, ongoing, and upcoming)

+ K

employees

MN

SQM total built-up area of projects (completed, ongoing, and upcoming)

MN SAR

in revenue FY202

(CAGR 67% 2018-2020) 

MN SAR

in net profit FY2020

(CAGR 500% 2018-2020) 

Retal in numbers

+

total projects executed  

K

total units executed & under construction

MN

SQM total built-up area of projects (completed, ongoing, and upcoming)

MN SAR

in revenue FY202

(CAGR 67% 2018-2020) 

BN SAR

Value of total projects (completed, ongoing, and upcoming)

+ K

employees

MN SAR

in net profit FY2020

(CAGR 500% 2018-2020) 

In a short timeframe, Retal has launched and achieved significant traction as a next-generation home builder and a trusted developer in building residential and commercial real estate. The Company is the #1 real estate developer in Saudi Arabia, as awarded by the Ministry of Municipal, Rural Affairs and Housing (MoMRAH) 2019 & 2020

  • Retal operates in the region’s largest economy, capitalizing on young, growing population and extensive government initiatives. 2030 vison programs and initiatives have significantly played a role in the evolution of the real estate market in the Kingdom, as boosting KSA’s population and employment, leads to a higher percentage of homeownership resulting in a growing mortgage market which is a keystone of the vision.
  • Access to home financing is improving with over 25% increase in the 12 months in H1 2021. Financial institutions lent SAR 79 billion, up from SAR 62.1 billion in H1 2020, with the number of transactions up 14% to 153,054.
  • There is a huge demand/supply gap offering Retal with an opportunity to exploit and grow further. Demand for housing is due to reach 4 million units by 2030 with a demand gap of 2 million units. Overall, real estate is a massive market with significant potential for Retal to become a key player for many years to come.
  • Retal has 4 business units that enable it to ensure quality control across the full supply chain, from concept development, design, and construction to sales.
  • This integration allows Retal to have full control over quality while minimising operational cost.

         –    Nesaj provides high end services and engineering solutions through project management, in terms of design managements, site supervision and construction management for all type of projects.

         –    Building Construction Company (BCC) engages in general contracting such as building repairs, demolitions, and renovations.

         –    Tadbeir engages in general cleaning, maintenance and operating buildings, gardens, parks, and sports facilities.

         –    TRS engages in the sale of fixed and movable assets, purchase and sale of land, management, and rental of owned or leased, real estate management activities for commission, activities of brokers                    agents, money management and preservation of the property.

  • Retal has over 7,000+ units developed and under execution since its inception in 2012.
  • The Company has built iconic master planned communities such as Nesaj Town Riyadh, Marasi Al Khobar and Retal Square. It predominantly focuses on highly integrated residential communities with innovative designs, premium quality and full access to amenities.
  • Retal has been recognised by the Ministry of Municipal, Rural Affairs and Housing (MOMRAH) as the best developer in Saudi in 2019 and 2020. 
  • Built on a solid operating platform, Retal’s business model is scalable and utilises off-plan sales.
  • The Company offers a portfolio mix of residential, commercial, and recreational amenities capturing a wide audience across the affordable, mid-market, and high-end of the market segment. 
  • Off-plan sales model ensures that Retal is responding to market demand with low capital requirements, creating resilient capacity to paying dividends.
  • In 2020, Retal sold 2,010 units, of which 65% was sold off-plan. As of the nine-month period 2021, off-plan sales make up 91% of revenues.

Retal has demonstrated consistent revenue growth, high net profit margins and solid cash flow generation. For the FY 2020 vs FY 2019:

  • Total units sold:2,010 vs 570
  • Total sales:  SAR 587m vs SAR 456m
  • Net profit:SAR 99m vs SAR 59m
  • Gross profit margin:21% vs 17%
  • Operating profit margin:15.4% vs 10.5%
  • Return on Assets:10.7% vs 10.0%
  • Return on Equity: 22.8% vs 25.1%

Retal has assembled one of the best technical, operational, and financial oriented teams in the KSA real estate market. It has also implemented a robust governance framework based on CMA’s Corporate Governance Regulations. You can read the managements biographies and details on corporate governance in the Prospectus.  

2022
2022
2022
2022
2022
2022
2022
To be confirmed

Downloads

The shares will be listed on Main Market of the Saudi Stock Exchange (Saudi Exchange).

Subscription to the Offer Shares is restricted to the following two groups of investors: (1) Participating Parties (any investor who is approved by the CMA) and (2) Individual Investors (Saudi Arabian nationals, GCC nationals and foreign residents in Saudi Arabia, with an active bank account with one of the participating banks), are eligible to subscribe to the Offering.

The Offering’s final price will be set after the book-building period is complete.  

There will be no implementation of a lock-up period or restrictions on the sale of shares following the listing.

How to

Subscribe

SNB Capital Company

The regional building of the
Saudi National Bank

King Saud Road  

Molding. 22216 

Riyadh 11495 

Kingdom Saudi Arabia
Tel: +966 9200 9200 00232

Website: www.alahlicapital.com  

Email: snbc.cm@alahlicapital.com 

If you are interested to invest in Retal, please contact one of the Receiving Banks listed below which are collaborating with the Company in order to help investors and shareholders.

Saudi National Bank

King Fahd Road – Al Okeik District– King Abdullah Financial Center      

P.O. Box 3208, Unit: 778  

Riyadh 6676 – 13519 

Kingdom of Saudi Arabia 

Tel: +966 92000 1000 
Website: www.alahli.com   

Email: contactus@alahli.com   

Riyad Bank 

Eastern Ring Road 

P.O. Box 22622 

Riyadh 11614 

Kingdom of Saudi Arabia  

Tel: +966 (11) 4013030

Fax: +966 (11) 4030016

Website: www.riyadbank.com 

Email: customercare@riyadbank.com 

Bank Albilad

King Abdullah Road  

P.O. Box 140   

Riyadh 11411 

Kingdom of Saudi Arabia  

Tel: +966 (11) 479 8888

Fax: +966 (11) 479 8505

Website: www.bankalbilad.com 

Email: customercare@bankalbilad.com

Brunswick Group

Brunswick Group
Jade Mamarbachi / Joudi Issa
Tel: +971 4 560 9600
Email:  retal@brunswickgroup.com

Retal Co.

Abdullah AlShuwayer 
Tel: +966 54 226 0013
Email: a.alshuwayer@retal.com.sa

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DISCLAIMER

The following pages contain information relating to a proposed transaction for Retal Urban Development Company (the “Company”). This information may not be accessed by residents of certain countries based on the applicable securities law regulations.
Access to the information and documents on this portion of the website is restricted for regulatory reasons. Please read the following notice carefully before deciding whether to click on the link below to view the information on the following web pages. The information furnished on the following web pages is not to be furnished or made available to any person outside the Kingdom of Saudi Arabia or to any person to whom it is unlawful to furnish or make available such information. The information on the following web pages is intended solely to provide information on the initial public offering and listing of Retal Urban Development Company and does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any jurisdiction. The information on the following web pages does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any securities in any jurisdiction other than the Kingdom of Saudi Arabia. The information is current only as of its date and shall not, under any circumstances, create any implication that the information contained therein is correct as of any time subsequent to the date thereof or that there has been no change in the financial condition or affairs of the Company since such date. Neither the Company, nor any of its agents, employees or advisors accept any responsibility for any contravention of applicable securities laws and regulations by individuals as a result of false information provided by such individuals. By clicking on the link below to view the information on the following web pages and other information in this website, you will be deemed to have represented and warranted that: (i) you are not currently located in any jurisdiction where distribution of the information on this website is prohibited or restricted; (ii) it is lawful for you to receive a copy of the information contained on this website; and (iii) you have read, understand and agree to comply with all of the restrictions set forth above. **Not for publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Canada, Australia or Japan, South Africa or in any other jurisdiction in which such publication or distribution would be prohibited by applicable law or regulation.**

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