IPOs and offerings claimed the limelight over the past week amid a mix of other corporate and regulatory developments.
Growing influence
The Eurasian region is building on the strong commercial presence of large conglomerates from GCC region to become a key partner with the major GCC Islamic finance players.
The power wielded by Islamic investors in capital markets around the world and the influence of Gulf wealth continues to be underestimated and misunderstood.
Offerings
The Shariah compliant IPO of Madiran Electronic Industries in Iran saw 720 million shares offered to retail and institutional investors, representing 12% of the firm’s six billion share capital.
Saudi independent digital investment platform Derayah Financial’s IPO pricing was set at SAR30 (US$8) per share for the 49.94 million shares offering, representing 20% of the company’s share capital – pointing to a market capitalization at listing of SAR7.5 billion (US$2 billion).
Shariah compliant securities firm Aljazira Capital partnered with Target to launch a real estate fund valued at over SAR1 billion (US$266.67 million). GulfCap Investment Bank was approved by Kenya’s Capital Markets Authority to register the Ziidi Shariah Money Market Fund – which will target the M-PESA money market platform operated by telco Safaricom.
Fresh from the AED500 million (US$136.15 million) acquisition at the end of 2024 of Manrre REIT, a Dubai-based fund with assets across the UAE and the GCC region, new owner GFH Partners registered a fresh private offering for this REIT with the UAE Securities and Commodities Authority.
Apex Group announced the launch of its Riyadh regional headquarters to focus on capital raising, investment management advisory and related services within Saudi Arabia – aiming to support both local asset managers and foreign funds.
Real estate
A consortium comprising Dar Al Arkan Real Estate Development, Kenzi Al Arabiya Company and other investors won a Jeddah land auction worth SAR4.46 billion (US$1.19 billion) for the Orchid land plot marketed by Itqan Real Estate Company. Investcorp Capital bought another four student housing projects in the US with over 2,500 beds in total for a gross transaction value of over US$300 million.
Koperasi Sahabat Amanah Ikhtiar Malaysia’s 2019 entry into property development has resulted in the real estate sector becoming a major income contributor.
Results
The Shariah compliant REIT managed by Emirates NBD Asset Management recorded a net asset value of US$216 million at the end of Q3 2024 – marking a 13.1% higher year-on-year comparison. Pakistan’s Shariah compliant sustainable development impact TPL REIT Fund I reported PKR706.07 million (US$2.52 million) profit for the six months ended the 31st December 2024.
Yaqeen Capital reported a 74.13% rise in gross profit to SAR28.8 million (US$7.68 million) for the whole of 2024 from SAR16.54 million (US$4.41 million) before – buoyed by the increased pipeline of successful IPOs plus higher special commissions from Murabahah deals
Distribution of cash dividends to Jadwa REIT Saudi Fund’s unitholders for Q4 2024 was set at SAR20 (US$5.33), maintaining the REIT’s quarterly dividend payout trend since 2021. Cash dividends to unitholders of Alwaha REIT Fund was set at SAR0.35 (US$0.09) for H2 2024, same as that for H1 2024.
Regulatory matters
Stanbic IBTC Stockbrokers was appointed by Nigeria’s Debt Management Office to be the Federal Government of Nigeria (FGN)’s stockbroker with a key mandate to attract more investors to FGN securities, FGN savings bonds as well as Sukuk issued by the sovereign.
The Securities Commission Malaysia released its Regulatory Sandbox Guidelines and invites applications from the 15th April 2025.
Financial professionals with Islamic market experience will enjoy from the 1st March 2025 faster immigration approvals to work in Hong Kong.
