Construction & Real Estate

Umm Al Qura surges 30pc on debut Saudi IPO

Saudi-based Umm Al Qura for Development and Construction has announced that its shares surged by 30% on the group's debut on the Saudi Exchange’s Main Market which hit SAR19.5 ($5.2) per share following a $523 million 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. 
 
Announcing the successful debut, the Saudi developer said the IPO was oversubscribed 241 times in the institutional tranche and 20 times in the retail tranche.
 
Within minutes of the IPO launch, the shares jumped SAR4.5 ($1.2) above the SAR15 IPO price.
 
The retail subscription process, comprising a maximum of 13.1 million shares, representing 10% of the total offer shares, commenced 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 1.0316%.
 
The Final Offer Price for the IPO was set at SAR15 per share at the top of the range, implying a market capitalisation of approximately SAR21.6 billion ($5.75 billion) at listing.
 
CEO Yasser AbuAteek said: "2024 was a transformational year for Umm Al Qura as we prepared to list on the Main Market of the Saudi Exchange. We are proud of the significant progress we have made, and the strong foundation we have built for the future of Makkah."
 
"The achievements of 2024 reinforce our commitment to delivering exceptional value to our stakeholders, and particularly the incoming public shareholders. Umm Al Qura is now positioned for continued success in the years ahead as we remain focused on the goals of Vision 2030 and our commitments to enhancing the experience of residents, pilgrims and visitors of Makkah while developing a world-class multi-use destination," he added.
 
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

Construction & Real Estate

L&T snaps up mega $1.7bn QatarEnergy LNG contract

India's top engineering and construction conglomerate Larsen & Toubro (L&T) has announced that its key unit - L&T Energy Hydrocarbon (LTEH) - has secured a ultra mega contract from QatarEnergy LNG for the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4).
 
Confirming the mega win, L&T said the contract, which is worth more than Rs150 billion ($1.7 billion), is the largest single order ever received by the company. 
 
The scope of work encompasses the engineering, procurement, fabrication, installation, and commissioning of two offshore compression complexes, each comprising large offshore platforms with compression and power generation facilities, living quarters, flare platforms, interconnected bridges, and other associated structures to be located 80 km off the northeast coast of Qatar. 
 
S N Subrahmanyan, Chairman & Managing Director - L&T, said: "Securing QatarEnergy LNG's ultra mega offshore contract - the largest single order in our history, is a landmark achievement. This prestigious project strengthens our global energy portfolio while supporting Qatar's energy security objectives."
 
"I thank QatarEnergy LNG for placing their trust in L&T to deliver this complex and strategically important project. We look forward to setting new benchmarks in project execution that will reinforce Qatar's position as a global LNG leader," he stated. 
 
Subramanian Sarma, Deputy Managing Director & President - L&T, said: "The award of a project of such nature is a reflection of the confidence and trust placed by QatarEnergy LNG in L&T’s expertise and its ability to deliver such large-scale projects for which L&T is very thankful."
 
"This collaboration not only strengthens our partnership but also reaffirms L&T's commitment to supporting Qatar's strategic energy objectives through innovative and reliable solutions," he added.-TradeArabia News Service

Construction & Real Estate

Sharjah Airport gears up for big Eid holiday rush

Sharjah Airport has announced its full operational readiness to efficiently manage the anticipated surge in air traffic during the Eid Al Fitr holiday period.
 
The airport is expected to receive over 500,000 passengers and operate 3,344 flights between March 27 and April 6.
 
The Sharjah Airport Authority (SAA) confirmed that all operational and logistical preparations have been completed in coordination with its strategic partners and all relevant entities, to ensure smooth operations and deliver an exceptional travel experience in line with the highest international standards.
 
The SAA has developed a comprehensive operational plan aimed at enhancing the efficiency of operations during peak travel periods. 
 
The plan includes deploying sufficient human resources across all work areas, with a particular focus on strengthening customer service teams to provide immediate support and assistance to passengers. 
 
All facilities and supporting services have also been fully prepared to ensure a smooth and seamless experience that reflects the airport’s position as a leading aviation hub, said senior SAA officials.
 
As part of its commitment to inclusive services, the SAA has also placed special emphasis on providing dedicated facilities and supportive services for senior citizens, children, and persons with disabilities, ensuring their comfort and meeting their unique travel requirements, they stated.
 
Sharjah Airport continues to enhance its digital journey by encouraging passengers to use smart technologies that enable fast and efficient check-in procedures. Also they have been advised to arrive at the airport at least three hours before their scheduled departure time.
 
"This contributes to quicker passenger flow and a more seamless experience overall," said the officials.
 
"These efforts are aligned with the airport’s broader digital transformation strategy and its ongoing commitment to adopting advanced technological solutions to improve service delivery and provide a fully integrated travel experience," they added.-TradeArabia News Service