RIYADH: Saudi Contractor, Umm Al Qura for Development and Construction Co. is going ahead with its IPO to support its Masar Destination project in Makkah worth $26.6 billion. The company’s application has been accepted by the Capital Market Authority, allowing to issue over 130 million new shares, showing 9.09% of its post-capital increase shares.
The 3.5 km mixed-use project, Masar, will have hospitality, residential, retail, and commercial spaces. It includes 41,000 hotel and service apartment keys and 9,000 residential units. The development will also hold a shopping mall, retail centers, a hospital, a mosque, office spaces and enhanced transport infrastructure.
The IPO funds will be used for land settlements, infrastructure, project financing, and general corporate expenses, including sales, marketing, and administration. Abdullah Saleh Kamel, Chairman stated the significance of Masar in supporting Vision 2030 by increasing Makkah’s capacity for pilgrims and visitors. He stated the IPO to be a significant investment opportunity for institutional and retail investors.
CEO Yasser Abuateek stated that the company was established in 2012 to improve Makkah’s urban and investment landscape. He mentioned IPO as evidence of Umm Al Qura’s growth and dedication to creating new urban destinations.
Public Investment Fund, the General Organization for Social Insurance, and Dallah Al-Baraka Holding are the key shareholders of the company. The IPO is expected to raise investors’ interest as almost 99.8% of the work has been completed, along with strong financial backing, positioning Makkah as a global religious and tourism hub.
