Umm Al Qura and Takatuf Holding sign major investment agreement for IPO
Umm Al Qura for Development and Construction (“Umm Al Qura”, the “Company” or the “Issuer”), the owner, developer and operator of MASAR Destination (“the Project” or “MASAR”) – one of the largest redevelopment projects in Makkah, today announces it has issued a supplementary prospectus and signed a binding investment undertaking agreement for its Initial Public Offering (“IPO” or “the Offering”) with Takatuf Holding Group Company (“Cornerstone Investor” or “Major Investor”), a limited liability company wholly owned by Abdullah Sulaiman Al Rajhi Holding Company (“ASAQ”).
The Cornerstone Investor has committed to a subscription of 8,875,740 Offer Shares, representing 6.8% of the offer shares (“Cornerstone Investor Shares”). The Cornerstone Commitment represents approximately 0.62% of the Company’s share capital after the Offering.
Yasser Abdulaziz Abu Ateek, CEO of Umm Al Qura commented on the occasion, “We are pleased to welcome Takatuf Holding Group Company, a wholly owned subsidiary of Abdullah Sulaiman Al Rajhi Holding Company, as a cornerstone investor for our IPO. This step reaffirms the attractiveness of the investment opportunities Umm Al Qura offers and its ability to attract investors. It also reflects Takatuf’s confidence in the company’s business model and growth strategy. We are delighted to collaborate with such a distinguished partner to create sustainable value for our shareholders.”
The price range for the Offering was announced earlier and set between SAR 14 – 15 per share (the “Price Range”). This implies an offering size between SAR 1,831,005,988 (USD 488,268,263) and SAR 1,961,792,130 (USD 523,144,568) reflecting a total market capitalization at listing between SAR 20,141,065,854 (USD 5,370,950,894) and SAR 21,579,713,415 (USD 5,754,590,244). The institutional book building period commenced on 16 February 2025G and ends on 20 February 2025G. The final Offering Price will be determined at the end of the book-building process.
It is also worth noting that the supplementary prospectus included amendments to the information contained in the preliminary prospectus to reflect material developments and clarify some of the information included in the preliminary prospectus.
