The initial public offering (IPO) of the Sharia-compliant Bonyan REIT Fund on the Saudi Stock Exchange (Tadawul) will begin today, April 15 and run until May 3, Saudi Fransi Capital, the fund manager, said in a statement on Sunday.
The fund size amounts to SAR 1.63 billion. Bonyan will offer 65.15 million units at SAR 10 per unit, accounting for 40 percent of its total units. The minimum subscription is SAR 1,000.
Bonyan aims to invest in real estate assets inside and outside the Kingdom, and to distribute semi-annual cash dividend of no less than 90 percent of fund's annual net profit. The payment will fall at the end of Q2 and Q4 of every year.
The fund's asset base includes ten properties -- four shopping malls, three hotels, two residential compounds and one apartment building at City Walk Dubai.
The REIT will invest at least 75 percent of its total assets in developed real estate assets and will not invest in vacant land, the statement added.
It may diverse its investments by investing a maximum of 25 percent of its total asset in real estate located inside the Kingdom.
Eligible investors are Saudis, as well as institutions, companies, investment funds and other government entities, which are owned by Saudis and are operating in the Kingdom.
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Bonyan REIT Profile |
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Fund |
Bonyan Real Estate Investment Traded REIT Fund, sharia-compliant REIT |
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Investment objectives |
Investing in income-generating real estate properties inside and outside where at eat 90% of the fund’s net profit shall be distributed to unit holders on a semi-annual basis |
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Fund size |
SAR 1.628 bln |
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IPO Percent |
40% of total units |
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In-kind subscriptions |
SAR 977.28 mln. The fund manager will issue 97.72 mln units representing 60% of the fund units for real estate properties sellers. |
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IPO monetary value |
SAR 651.52 |
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Number of IPO units |
65.15 mln units |
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Unit’s price |
SAR 10 |
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IPO period |
15 days from April 15 to May 3 |
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Receiving banks |
BSF, Al Rajhi, Riyad, Samaba, NCB and Saudi Fransi Capital |
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Minimum Subscription Limit |
SAR 1,000 (100 units at SAR 10 per unit) |
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Maximum Subscription Limit |
SAR 81 mln (8.1 mln units at SAR 10 per unit) |
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Subscription fees |
None |
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Management fees |
0.5% annually from total fund value after deducting expenses |
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Custodian fees |
- 0.025% annually from total fund value - SAR 30,000 annually for Zakat declaration and financial statements - SAR 60,000 one-time expense for establishing a facility with an objective |
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Fund manager |
Saudi Fransi Capital |
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Fund term |
99 yrs from the listing in Saudi market. The term is renewable to similar periods after obtaining approvals from the fund’s board and the CMA |
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Valuators |
Knight Frank, ValueStart and Tathmen |
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Cash dividend |
Semi-annual cash dividend of not less than 90% of fund annual net profit to be paid at the end of Q2 and Q4 of each fiscal year |
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Trading |
The same methodology of trading stocks within the Saudi Stock Exchange |
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