PIF divests 3.3% stake in Masar in $253m transaction

27/11/2025 02:38 AST

Saudi Arabia's Public Investment Fund has completed the sale of part of its stake in Umm Al Qura for Development and Construction Co., also known as Masar, valued at more than SR950 million ($253.2 million).

The transaction included 48 million shares, representing 3.3 percent of Masar's share capital, and was priced at SR19.8 per share, according to a press release.

Masar is a major urban development company linked to large-scale infrastructure and real estate initiatives, making it a strategic asset for institutional investors seeking exposure to the country's long-term growth programs.

The sale was conducted through an accelerated bookbuild offering, a fast-track process in which large blocks of shares are sold directly to institutional investors, allowing the seller to complete the deal quickly without putting downward pressure on the stock price through gradual selling.

The offering attracted demand from both local and international institutional investors and was oversubscribed, reflecting continued confidence in Masar's development strategy and the broader appeal of the Saudi capital market.

Saad Al-Kroud, head of the Local Real Estate Investment Division at PIF, said: "By creating opportunities for institutions to invest in Masar, PIF is further broadening the company's investor base."

He added: "The offering aligns with PIF's investment strategy, which focuses on deploying capital and income into the domestic PIF ecosystem, to further strengthen Saudi Arabia's private sector and deepen Saudi capital markets. This mandate allows PIF to continue to drive the sustainable development and diversification of the country's economy."

The deal increases the company's free float and expands its institutional investor base, a key objective of recent market reforms aimed at deepening liquidity and strengthening foreign participation.

Following the transaction, PIF retains 234.3 million shares in Masar, equivalent to a 16.3 percent stake.

The fund said that the sale supports its broader mandate to diversify its holdings while reinforcing investment channels within the Kingdom.

It is the developer behind the SR100 billion Masar redevelopment project in Makkah. The company listed in March after raising $523 million through its initial public offering.

Earlier this year, Saudi Arabia's market regulator permitted foreign investors to buy shares in listed companies that own real estate in Makkah and Madinah, a move aimed at attracting greater capital inflows into the Kingdom.

Arab News