IPO – RETAL BONUS

Shaping the future of Saudi Arabia

Retal announces
its intention to float
on the Saudi Stock
Exchange

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.

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.

Retal
Chairman’s message

In support of the Kingdom’s Vision 2030, we have taken steps to make us the ideal future destination for living, working and tourism.

“I am delighted to announce
our intention to list on the Saudi
Exchange through an IPO.

“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 highquality developments
in desirable destinations

“We are already witnessing a huge demand for highquality 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

IPO Retal numbers

Total projects
executed

+ 0

Total units executed
& under construction

+ 0 .000

Billion SAR
Value of Total Projects

+ 0

Million SAR
in Revenur FY2020

+ 0

Million SQM Total
build up area

+ 0

Retal Employees

+ 0 K

Million SAR
in Net Profit FY2020

+ 0

Million SQM Total
build up area

+ 0

Retal
Employees

+ 0 K

Million SAR
in Net Profit FY2020

+ 0

INVESTEMENT
HIGHLIGHTS

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.

INVESTEMENT HIGHLIGHTS

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

Strategically focused on premier locations in Saudi Arabia, which has strong economic and favorable demographics long-term.

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 provides customers, partners, and individuals with a full-service integrated platform. It delivers solutions beyond construction.

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 is a next generation real estate development company.

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.

Retal offers a premium portfolio of diversified assets to a wide variety of customer types.

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.

Industry leading return on equity, with superior earnings and strong balance sheet.

- 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%

An engaged and experienced leadership team, with a strong track record in homebuilding.

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 management’s biographies and details on corporate governance in the Prospectus.

INVESTMENT HIGHLIGHTS

IPO Milestones

09 May 2022

Intention to float
and precuts

31-25 May 2022

Offering Period for Participating
Parties and Book-Building Period

05 June 2022

Deadline for submission of Subscription Forms by Participating Parties based on the initial allocation of Offer Shares

06-05 June 2022

Submission Period for
Individual Investors

07 June 2022

Deadline for payment of subscription money by Participating Parties based on their initially allocated Offer Shares

12 June 2022

Announcement of final Offer Shares allotment

15 June 2022

Refund of excess subscription monies

Expected trading commencement date for the Shares
To be confirmed

*Trading of the Offer Shares on the Exchange is expected to commence after all relevant legal requirements and procedures have been fulfilled. Trading will be announced in local newspapers and on the Saudi Exchange website (www. saudiexchange.sa).