Umm Al Qura Enters Investment Agreement for IPO with Takatuf Holding
Deal News | Feb 18, 2025 | Zawya
Umm Al Qura for Development and Construction, renowned for its significant redevelopment project in Makkah, MASAR destination, has signed a pivotal investment undertaking agreement for its IPO with cornerstone investor Takatuf Holding Group Company. This agreement underscores Takatuf’s commitment to purchase 8,875,740 offer shares, representing approximately 6.8% of the offer shares, translating to about 0.62% of the company's share capital post-offering. The IPO price range is set between SAR 14 and 15 per share, indicating a likely market cap between SAR 20.1 billion and SAR 21.5 billion. The institutional book-building process is scheduled between 16 and 20 February 2025. The offering will be listed on Saudi Exchange post approvals from CMA and Saudi Exchange. Additionally, the IPO is orchestrated into two investor tranches: Participating Parties, which includes diverse investors qualified for the book-building, and Individual Investors. Noteworthily, certain restrictions are imposed by Saudi law on real estate ownership in Makkah and Madinah for non-Saudis. Consequently, foreign strategic investors are excluded from this offering. Supporting the IPO process are Albilad Capital, GIB Capital, and AlRajhi Capital as Joint Financial Advisors, among others. This monumental step not only highlights the attractiveness and growth potential of Umm Al Qura's business model but also signals a robust investment from major investors for future sustainable value creation.
Sectors
- Real Estate Development
- Financial Services
Geography
- Saudi Arabia – The activities revolve around Umm Al Qura's developments in Makkah, the investment operations by Takatuf Holding Group, headquartered in Riyadh, and the listing on the Saudi Exchange.
Industry
- Real Estate Development – Umm Al Qura for Development and Construction is engaged in large-scale redevelopment projects, specifically MASAR in Makkah, making this sector pivotal.
- Financial Services – The IPO process involves financial undertakings, investment agreements, and coordination with financial advisors, highlighting the relevance of the financial services industry.
Financials
- SAR 1,831,005,988 - SAR 1,961,792,130 – Estimated size of the offering, equivalent to USD 488,268,263 to USD 523,144,568.
- SAR 20,141,065,854 - SAR 21,579,713,415 – Projected total market capitalization at listing, equivalent to USD 5,370,950,894 to USD 5,754,590,244.
- 8,875,740 Offer Shares – Number of shares committed by Takatuf Holding as the Cornerstone Investor.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Umm Al Qura for Development and Construction | Target Company | Company | The developer and owner of MASAR, involved in the IPO process. |
| Takatuf Holding Group Company | Cornerstone Investor | Company | A financial investment company committed to purchasing a substantial share of Umm Al Qura's offering. |
| Abdullah Sulaiman Al Rajhi Holding Company (ASAQ) | Parent Company of Takatuf Holding | Company | Owns Takatuf Holding Group, involved in financial investments in Saudi Arabia. |
| Albilad Capital | Financial Advisor, Joint Bookrunner, Co-Underwriter | Company | One of the firms handling the advisory and underwriting processes for the IPO. |
| GIB Capital | Financial Advisor, Joint Bookrunner, Co-Underwriter | Company | Participating in advisory and underwriting for the IPO. |
| AlRajhi Capital | Financial Advisor, Joint Bookrunner, Co-Underwriter | Company | Involved in the advisory, bookrunning, and underwriting processes. |
| Alinma Investment | Joint Bookrunner, Co-Underwriter | Company | Facilitates the bookrunning and underwriting process. |
| Lazard Saudi Arabia | Advisor to the Company | Company | Provides advisory services to Umm Al Qura during the IPO process. |