Saudi property developer to list in London

Saudi property developer to list in London

A Saudi real estate business is spinning out its international luxury development operations through one of the largest listings in London so far this year.

The new company, DarGlobal, will raise $72mn through a direct listing on the main market in London, which is expected to value the business at about $600mn.

A direct listing works differently from a standard initial public offering by allowing the company’s existing private backers to sell their shares to the public and trade on the exchange rather than issue new stock.

The decision by the company to list in London will be a rare fillip for an otherwise moribund market for IPOs. The combination of stalling economic conditions, the slump in tech valuations and concerns caused by the war in Ukraine has damped investor interest in backing new public companies.

Ziad El Chaar, chief executive of DarGlobal, said: “London [is] the best location for us as we look to access new capital and build our global visibility with development and luxury brand partners.”

London-based bankers say there have been renewed conversations in recent weeks about potential future IPOs, which could lead to more activity in the second and third quarters of this year in the city.

DarGlobal said its shares