RIYADH: Saudi contractor Umm Al Qura for Development and Construction Co. is proceeding with an initial public offering on the main market to fund its SR100 billion ($26.6 billion) Masar Destination in Makkah.
According to a statement, the Capital Market Authority approved the company’s IPO application, allowing it to issue 130,786,142 new stocks, representing 9.09 percent of its post-capital increase shares.
Spanning 3.5 km, Masar is designed as a multi-use destination that will offer a variety of hospitality, residential, retail, and commercial spaces. The project will feature 41,000 keys across hotels, serviced apartments, and 9,000 residential units for sale.
“The net proceeds of the offering will be utilized to fund costs associated with land settlements, infrastructure, activation of the Masar destination and project financing expenditures; in addition to other general corporate expenditures, such as those relating to sales, marketing, administrative, operating and financing,” the statement said.
Masar’s retail and commercial elements will cover over 330,000 sq. meters, including a major shopping mall and retail centers. Additionally, the development will include a hospital, a mosque, office spaces, and transport infrastructure to enhance mobility and accessibility within Makkah.
Chairman of Umm Al Qura, Abdullah Saleh Kamel, said: “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.”
He added: “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.”
Yasser Abuateek, CEO of Umm Al Qura, emphasized that the firm was established in 2012 to enhance Makkah’s urban and investment landscape 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,” he said.
Abuateek described the IPO as “a vote of confidence” in the company’s track record of growth to date, as well as its “commitment to building state-of-the-art urban destinations that create unparalleled experiences.”
Umm Al Qura’s major shareholders include the Public Investment Fund, the General Organization for Social Insurance, and Dallah Al-Baraka Holding.
Masar is set to become another major destination for residents and visitors, with 99.77 percent of the key infrastructure work already completed.
As of June 30, the company holds a strong financial position, with a capital base exceeding SR13.1 billion and additional bank facilities of over SR14 billion. The IPO is expected to attract significant interest from investors, given Makkah’s growing importance as a global religious and tourism hub.
