Saudi Developer Umm Al Qura Draws $126 Billion in Orders for IPO

Umm Al Qura for Development and Construction Co. (Umm Al Qura) has drawn an overwhelming response from investors for its initial public offering (IPO), with total orders reaching $126 billion, according to a statement from Albilad Investment, the company's financial advisor. The final offer price was set at SAR 15 per share, with total demand covering 241 times the offered shares.

The IPO, which was completed on March 13, 2025, saw retail investors subscribing from March 5 to March 9, with a minimum subscription limit of 10 shares and a maximum of 2.5 million shares. Institutional investors, on the other hand, had a minimum subscription limit of 100,000 shares and a maximum of 71.93 million shares.

Umm Al Qura offered 130.79 million shares, representing 9.09% of post-offering capital (SAR 14.39 billion) and 10% of pre-offering capital. The company's current capital stands at SAR 13.08 billion, divided into 1.31 billion shares at SAR 10 each. A total of 13.08 million shares (10% of the offering) was allocated for retail investors.



The IPO proceeds will be allocated to project development, financial obligations, and corporate operations. Net proceeds will fund land settlements, infrastructure upgrades, and the activation of MASAR Destination, covering project financing expenditures, and supporting sales, marketing, administrative, and general operational costs.

Umm Al Qura's strategic location and project scale significantly influence its investment appeal and future growth prospects. The company's MASAR Destination project is strategically located along Makkah's western border, capitalizing on the city's globally significant real estate market and addressing future infrastructure, mobility, and hospitality demands. The project encompasses 205 investment plots (total area: 641,000 sqm) with a Gross Floor Area (GFA) of 5.7 million sqm, structured as a mixed-use global destination.

As of January 16, 2025, 61 plots (30% of total) were under agreements for sale, lease, or partnership-driven development, indicating the progress made in the project's development pipeline. Additionally, 99.77% of critical infrastructure was completed as of November 2024, demonstrating the company's commitment to delivering on its promises and transforming Makkah's urban landscape.

The overwhelming demand for Umm Al Qura's IPO can be attributed to several factors, including the company's strategic location, project scale, strong financial position, distinguished management team, and alignment with Saudi Arabia's Vision 2030 goals. The IPO proceeds are expected to have a significant impact on the development and activation of MASAR Destination, contributing to Makkah's urban transformation by addressing future infrastructure, mobility, and hospitality demands, and capitalizing on Makkah's globally significant real estate market.