PIF-backed mega developer Umm Al Qura set for Saudi IPO
MAKKAH, 2 days ago
Umm Al Qura for Development and Construction, the owner, developer and operator of Masar Destination, one of the largest redevelopment projects in Makkah, today (February 2) announced its plan to proceed with an initial public offering (IPO) and also list its ordinary shares on the Saudi stock exchange Tadawul’s Main Market.
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.
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.
*Serviced apartments represent 31.6% of the total GFA, consisting of 18,000 keys and a total GFA of 1.8 million sq m that will be distributed across the length of the project.
*Hotels represent 31.1% of the total floor area, consisting of 23,000 keys and a total GFA of 1.8 million sqm.
*Residential units represent 29.3% of the total gross floor area, consisting of 9,000 units to be developed and sold.
*Retail elements constitute 5.7% of the total GFA, consisting of 330,000 sqm. This includes a shopping mall on the western side of the project, in addition to two retail centres on the Eastern side. Outlets, stores, and stalls will also be distributed along the pedestrian walkway.
According to Umm Al Qura, Masar also includes various other elements such as a hospital, a large mosque at the centre of the site as well as office spaces and other complementary services.
Chairman Abdullah Saleh Kamel said: "Today marks a significant milestone as we announce our intention to list on the Saudi Exchange’s Main Market. I am deeply grateful to our wise leadership for their efforts in supporting the development of Makkah in alignment with Vision 2030’s goals to accommodate the growing number of pilgrims and visitors."
"Our IPO offers institutional and retail investors a highly compelling opportunity to invest in the development of Masar, a landmark project in the Kingdom. As we look to the future, our listing will be a key step in executing our strategy to maximize shareholder value," he added.
Upon completion, Masar Destination will boast more than 50,000 hospitality and residential units. The total estimated development value is approximately SAR100 billion ($26.6 billion).
CEO Yasser Abdulaziz Abu Ateek said: "Umm Al Qura was established to enhance the urban and investment landscape of Makkah through Masar. As we prepare to list on the Saudi Exchange, we are ready to begin a new era of accelerated growth, delivering against the ambitions of Vision 2030 to transform the residents and visitor experience in Makkah."
"Our IPO is a vote of confidence in our track record of growth to date, as well as our commitment to building state of the art urban destinations that create unparalleled experiences," he added.
For the Saudi 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
