Saudi developer Umm Al Qura sets price range for IPO
MAKKAH, 6 days ago
Umm Al Qura for Development and Construction today (February 16) announced the price range for its upcoming initial public offering (IPO) as well as the commencement of the institutional book-building period for participating parties.
A key Saudi-based group, Umm Al Qura was established in 2012 for undertaking the development of King Abdulaziz Road in Makkah which originally contained six unplanned settlements neighbourhoods; the project site area is known as Masar Destination.
Its current majority shareholders comprise state-owned entities and Saudi private sector including the Saudi sovereign wealth fund PIF, the General Organization for Social Insurance (GOSI) and Dallah Al Baraka Holding.
Masar is one of the largest redevelopment projects in the region, located directly on Makkah's western border. It stretches for more than 3.5km from the 3rd Ring Road intersection with Prince Mohammed bin Salman bin Abdulaziz Road (formerly Umm Alqura Road) to 550m away from Al Haram’s King Fahad Gate, said the company in a statement.
It consists of 205 investment plots, with a total area of approximately 641,000 sq m and a total gross floor area (GFA) of 5.7 million sq m, comprising various uses, which the company seeks to transform into a global multi-use destination to serve the residents and visitors of Makkah, it stated.
Umm Al Qura said the institutional book-building period began today and will run until February 20. The company has set SAR14 to 15 per share price range for the Offering.
On December 24 last year, the Capital Market Authority gave the go-ahead to Umm Al Qura for the registration of its share capital and the offering of 131 million shares.
This accounts for 9.09% of the company’s stake post the capital increase, by way of the issuance of new shares.
The company also received the Saudi Exchange’s conditional approval on December 8 to list on the Main Market of the Saudi Exchange.
The Saudi developer 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, it will also 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.-TradeArabia News Service
