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Saudi Arabia's Public Investment Fund (PIF) moved earlier this week to offload a 3.3% stake in Umm Al Qura for Development and Construction Co through an accelerated bookbuild aimed at institutional investors. The sale involves up to 48 million shares in the company responsible for the Masar Destination redevelopment in Mecca. The stake is valued at roughly 1.06 billion riyals (approximately USD 281.3 million), based on the company's latest closing price. Following the transaction, PIF is expected to retain about 16.3% in the developer as strong investor demand fully covered the offer.
Saudi Arabia's Public Investment Fund (PIF) moved earlier this week to sell a 3.3% stake in Umm Al Qura for Development and Construction Co through an accelerated bookbuild targeted at institutional investors. The proposed sale covers up to 48 million shares in the company, which is leading the Masar Destination redevelopment in Mecca-one of the most significant urban transformation projects in the kingdom. Advertisement
The pricing for the share sale was scheduled to be determined through the bookbuilding process, with results expected later the same day. According to the participating bookrunners, the offer had already been fully covered, with demand surpassing the size of the deal.
Masar's shares closed earlier this week at 21.98 riyals, valuing the divested stake at about 1.06 billion riyals, equivalent to roughly USD 281.3 million. Post-transaction, PIF is expected to hold around 16.3% of the company.
Umm Al Qura's Masar redevelopment project is valued at 100 billion riyals, or approximately USD 26.66 billion. The company had listed earlier this year after raising USD 523 million in its initial public offering. The project forms part of Saudi Arabia's broader efforts to reshape Mecca's urban landscape and enhance infrastructure for pilgrims and residents.
In a significant regulatory shift earlier this year, Saudi Arabia's market watchdog permitted foreign investment in listed companies owning real estate within Mecca and Medina. This policy adjustment aims to draw greater international capital into sectors previously restricted, aligning with the kingdom's wider economic diversification goals.
Source - Reuters
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