Umm Al Qura to launch IPO on Saudi Exchange to fund $26.7bn Makkah project

RIYADH: Umm Al Qura for Development and Construction said on Sunday it will proceed with an initial public offering (IPO) and list its shares on the Saudi Exchange’s main market.

The IPO proceeds will fund infrastructure, land settlements, and development of the MASAR Destination, a major Mecca redevelopment project valued at 100 billion riyal ($26.66 billion).

The developer of the MASAR Destination in Mecca, one of the holiest sites in Islam, said it plans to offer 130.8 million new shares, or 9.09% of its post-increase capital.

Spanning 1.2 million square meters, MASAR aims to enhance Mecca’s infrastructure with hotels, residential units, retail spaces, and cultural centers, according to its website.

The Saudi Exchange granted conditional approval on Dec. 8, 2024, while the Capital Market Authority (CMA) approved the company’s IPO on Dec. 24, 2024, allowing it to raise funds for land settlements, infrastructure, and project expansion.

Umm Al Qura was established in 2012, and is backed by major Saudi entities, including the Public Investment Fund of Saudi Arabia (PIF) and the General Organization for Social Insurance (GOSI).