Umm Al Qura's IPO Priced At SAR 15 Amidst Overwhelming Demand

Umm Al Qura for Development and Construction, the developer behind Makkah's transformative Masar Destination project, has set its initial public offering price at SAR 15 per share. This pricing, at the upper limit of the anticipated range, reflects robust investor interest, with institutional orders surpassing expectations.

The IPO's institutional tranche witnessed an oversubscription rate of approximately 241 times, amassing orders totaling around SAR 473 billion from both local and international investors. This substantial demand underscores the market's confidence in Umm Al Qura's strategic vision and the potential of the Masar Destination project.

Retail investors are slated to participate in the subscription process from March 5 to March 9, 2025. The offering comprises 130.79 million shares, representing 9.09% of the company's post-offering capital of SAR 14.39 billion and 10% of its pre-offering capital. Notably, 13.08 million shares, equating to 10% of the offering, are allocated specifically for retail investors.

Yasser Abdulaziz Abu Ateek, CEO of Umm Al Qura, expressed satisfaction with the IPO's reception, stating,“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.”

The Masar Destination project, spanning approximately 3.65 kilometers in length and about 320 meters in width, is poised to redefine Makkah's urban landscape. Strategically located at the city's center, the development covers over 1.2 million square meters and aims to enhance the quality of life for both residents and visitors. The project seamlessly blends Islamic aesthetics with contemporary design, offering a diverse range of facilities including hospitality, retail, cultural, and entertainment venues. Upon completion, Masar is expected to accommodate up to 30 million Umrah pilgrims annually by 2030, aligning with Saudi Arabia's Vision 2030 objectives.

The project's master plan emphasizes sustainable mobility and the preservation of Makkah's cultural heritage. A central pedestrian boulevard, stretching 3.65 kilometers, will provide a safe and comfortable passage for pilgrims and visitors to the Grand Mosque. This boulevard will be adorned with trees, fountains, and public art installations, featuring various amenities such as prayer areas, restrooms, and food and beverage outlets.

Financially, the net proceeds from the IPO are earmarked to support various facets of the Masar Destination project. These include land settlements, infrastructure development, activation of the destination, and project financing expenditures. Additionally, funds will be allocated for general corporate purposes encompassing sales, marketing, administrative, operational, and financing activities.

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