Saudi PIF-backed developer draws $126bn in IPO orders

28/02/2025 15:15 AST

Umm Al Qura, a leading developer backed by Saudi sovereign wealth fund PIF, today (February 27) announced the successful completion of the book-building process for participating entities and the final offer price for its initial public offering (IPO).

A leading player in the Saudi construction sector, Umm Al Qura is the owner, developer and operator of Masar Destination, one of the largest redevelopment projects in Makkah.

The final offer price has been set at SAR15 ($4) per share, which is the top end of the previously announced price range for the IPO, implying a market capitalisation of SAR21.58 billion ($5.75 billion) at listing, said the top developer.

The institutional offering was 241 times oversubscribed, with total orders amounting to SAR 473 billion ($126 billion) from local and international investors.

The retail subscription period will last for five calendar days, commencing on March 5 and ending on March 9.

On the solid response, CEO Yasser Abdulaziz Abu Ateek said: "We are extremely pleased with the strong investor demand for our IPO, which underscores the market's confidence in Umm Al Qura's vision and the transformative potential of Masar."

"As we take this important step, we remain committed to delivering on our mission to enhance Makkah's urban landscape, in alignment with Vision 2030, and provide long term value for our shareholders," he added.

On December 24 last year, Umm Al Qura won approval from the Saudi Capital Market Authority (CMA) for registration of its share capital and the offering of 130,786,142 shares, representing 9.09% of the company's stake post capital increase, by way of the issuance of 130,786,142 new shares through a capital increase.

The company also received the Saudi Exchange's conditional approval on December 08, 2024 to list on the Tadawul.

Umm Al Qura said the net proceeds of the IPO will be utilised to fund costs associated with land settlements, infrastructure, activation of the Masar destination and project financing expenditures.

In addition to this, the fund will be used for other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing.

For the key listing, Umm Al Qura has signed up Albilad Capital as joint financial advisor, lead manager, bookrunner and underwriter; GIB Capital and AlRajhi Capital as joint fnancial advisors, bookrunners and underwriters as well as Alinma Invest as joint bookrunner and underwriter.

Lazard has taken up the role of company advisor and FGS Global that of media and communications advisor.

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