Riyadh – Mubasher: Swicorp Wabel announced that it will implement an initial public offering (IPO) for Swicorp Wabel Real Estate Investment Traded Fund’s (Swicorp Wabel REIT) units starting from Monday, 19 March on the Saudi Stock Exchange (Tadawul).

The IPO will last for 15 working days until 8 April 2018.

The fund aims to distribute 7.7% net returns for shareholders in 2018, followed by 8.14% returns during 2019, and 8.30% in 2020, with 8.06% average for the three years, according to a statement to the Tadawul.

Swicorp Wabel will offer 35.40 million units, at SAR 10 per unit, with a total value of SAR 354 million, the statement added.

The offered units will represent 30% of the fund’s total amount which is SAR 1.18 billion, it said.

The minimum amount for investing in the fund is SAR 500, while the fund’s period will be 99 years since listing, the statement showed.

The fund’s investment portfolio consists of four commercial complexes which are named “Almakan Mall” that are distributed in Riyadh, Tabuk, Hafar Al-Batin, and Dawadmi governorates.

The sharia-compliant fund also aims to distribute not less than 90% of its net profits per annum.