Saudi-based Umm Al Qura for Development and Construction today (March 13) announced the successful completion of the offering period for retail investors for the company’s initial public offering (IPO).

 

Umm Al Qura is the owner, developer and operator of Masar Destination, one of the largest redevelopment projects in Makkah city.

 

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.

 

Announcing this, the Saudi developer said the retail subscription process, which involved a maximum of 13 million shares (representing 10% of the total offer shares) kicked off on March 5 and ended on March 9. 

 

It saw participation from 1,048,530 subscribers, indicating a coverage of 20 times, with a total demand of SAR3.93 billion ($1.05 billion. 

 

Individual subscribers will receive a minimum of 10 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 1.03%, it stated.

 

According to Umm Al Qura, the ffinal offer price for the Offering was set at SAR15 per share, pricing at the top of the range, implying a market capitalization of approximately SAR21.58 billion ($5.75 billion) at listing.

 

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. 

 

One of the largest redevelopment projects in the region, Masar is located directly on Makkah's western border. 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..

 

The company seeks to transform it into a global multi-use destination to serve the residents and visitors of Makkah.

 

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