Home Industry Construction Saudi IPO: PIF-backed developer Umm Al Qura to list on Tadawul The Saudi Exchange granted conditional approval on December 8, 2024, for the listing of Umm Al Qura’s shares on Tadawul’s Main Market by Gulf Business February 4, 2025 Image: Getty Images/ For illustrative purposes Saudi’s PIF-backed Umm Al Qura for Development and Construction (Umm Al Qura), the owner, developer, and operator of the Masar Destination project, one of Makkah’s largest redevelopment initiatives, has revealed plans to proceed with an initial public offering (IPO) and list its ordinary shares on Saudi Arabia’s Tadawul Main Market. The company received approval from the Saudi Capital Market Authority (CMA) on December 24, 2024, to register its share capital and offer 130,786,142 new shares, representing 9.09 per cent of the company’s post-capital increase stake. The shares will be issued as part of a capital increase, with the IPO expected to raise funds for the continued development of Masar. The Saudi Exchange also granted conditional approval on December 8, 2024, for the listing of Umm Al Qura’s shares on Tadawul’s Main Market. Umm Al Qura IPO proceeds to fund development Umm Al Qura confirmed that the net proceeds from the IPO will be used to cover various costs related to land settlements, infrastructure development, activation of Masar, and other project financing expenditures. Additionally, the funds will support general corporate expenses, including sales, marketing, administrative costs, and operational financing. Masar is one of the largest redevelopment projects in the region, located on Makkah’s western border, stretching for over 3.5 kilometres. The project site spans approximately 641,000 square metres and features a total gross floor area (GFA) of 5.7 million square metres. Upon completion, the development will include a mix of hospitality, residential, and retail spaces aimed at transforming Makkah into a global multi-use destination for both residents and visitors. Masar will also include a range of additional facilities, such as a hospital, a large mosque at the centre of the site, office spaces, and other complementary services. Commitment to Vision 2030 Umm Al Qura’s chairman, Abdullah Saleh Kamel, emphasised the significance of the IPO, stating the step marked “a significant milestone as we announce our intention to list on the Saudi Exchange’s Main Market. 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 maximise shareholder value.” A $26.6bn development Upon completion, Masar is set to offer more than 50,000 hospitality and residential units, with the total estimated development value reaching approximately SAR100bn ($26.6bn). CEO Yasser Abdulaziz Abu Ateek commented: “Umm Al Qura was established to enhance the urban and investment landscape of Makkah 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.” “Our IPO is a vote of confidence in our track record of growth to date, as well as our commitment to building state-of-the-art urban destinations that create unparalleled experiences,” he added. For the Saudi listing, Umm Al Qura has appointed Albilad Capital as joint financial advisor, lead manager, bookrunner, and underwriter. GIB Capital and AlRajhi Capital will serve as joint financial advisors, book runners, and underwriters, while Alinma Invest will also act as a joint book runner and underwriter. Lazard is advising the company and FGS Global is providing media and communications advisory services. Read: Saudi Arabia’s PIF completes $4bn bond issuance Tags Construction IPO PIF Saudi Arabia tadawul Umm Al Qura for Development and Construction You might also like Tabby raises $160m, becomes MENA’s most ‘valuable’ fintech LEAP 2025: What tech leaders have to say about their participation Tech to make Riyadh MENA music hub by 2030, says Grammy head at DeepFest DeepFest 2025 showcases Saudi Arabia’s AI ambitions