Umm Al Qura for Development issues prospectus for IPO on TASI

Umm Al Qura for Development and Construction Co., the owner and developer of MASAR destination, issued today, Feb. 2, its IPO prospectus to offer 130.79 million shares on the Main Market (TASI).
 

The shares represent nearly 9.09% of the company’s post-IPO capital and 10% of its pre-IPO capital.
 

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The share sale will run for three working days from Feb. 5-9, 2025 According to the prospectus, the book-building process and subscription period for participating entities will run from Feb. 16 to Feb. 20.
 

Last December, the Capital Market Authority (CMA) approved the company's application to list its shares on TASI.

The subscription is limited to two categories of investors:
 

Tranche (A): Participating parties: This tranche includes the parties entitled to participate in the book-building process in accordance with the book-building instructions, including investment funds, companies, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to swap agreements.
 

The Non-Saudi Real Estate Ownership and Investment Law prohibits non-Saudis from acquiring ownership rights or the right of usufruct over real estate located within the boundaries of the cities of Makkah and Madinah. This includes natural persons who do not hold Saudi nationality, unlisted companies, and Saudi companies founded, co-founded or in which any natural or legal person who does not hold Saudi nationality is a shareholder, with some limited exceptions.

However, under the controls for exempting Tadawul-listed companies from the meaning of the term non-Saudi, according to the Non-Saudi Real Estate Ownership and Investment Law issued on January 27, 2025, foreigners are allowed to invest in Saudi companies listed on the Saudi Exchange, which own permanent or temporary real estate within the borders of the cities of Makkah and Madinah, subject to the following conditions:
 

First: The foreign strategic investor does not own shares in the listed company.
 

Second: The ownership of natural and legal persons who do not hold Saudi nationality collectively does not exceed 49% of the shares of the listed company at all times.
 

Tranche (B): Individual subscribers: This tranche comprises Saudi nationals, including and any non-Saudi natural person who is a resident in the Kingdom and any GCC national, who holds a bank account with one of the receiving entities, and are allowed to open an investment account.

Company Info:
 

Umm Al-Qura for Real Estate Development and Construction Co. was established in 2012, and is headquartered in Makkah. The company's objectives are to develop and construct King Abdulaziz Road in Makkah, own real estate in the region, develop it into plots, manage, invest in, sell and lease them, own plots of land for urban development, and carry out all necessary construction, maintenance, demolition and surveying works.
 

The company's main activities are focused on the real estate sector, as it is specialized in developing the Masar Destination project, and supervising all technical, planning, administrative and operational details of the project.
 

The company's activities consist of the following: Purchase, sale and partitioning of land and real estate, off-plan sales activities, management and leasing of residential owned or leased properties, management and leasing of non-residential owned or leased properties, general construction of residential and non-residential buildings such as schools, hospitals and hotels, construction of roads, streets, sidewalks and road supplies, construction of bridges and tunnels.