PIF-backed Umm Al Qura for Development and Construction is taking a 9.1% stake to Tadawul’s main market, according to its intention to float (ITF) (pdf). Some 130.79 mn newly-issued shares will be up for grabs. No details were provided on the timeline or potential value of the IPO, although previous reports had suggested an IPO “could raise a few hundred mn USD.” Bloomberg also had the story.

The IPO will initially be limited to institutional investors, including investment funds, companies, qualified foreign investors, GCC corporate investors, and some foreign investors under swap agreements. Following that, retail investors will be able to subscribe to 10% of the offering, provided there is sufficient demand.

IN CONTEXT- The Makkah-based developer’s IPO comes on the heels of a recent regulatoryupdate allowing foreign investors to directly buy shares and convertible debt instruments in Tadawul-listed real estate companies with assets in Makkah and Madinah. The move unlocks the option for non-Saudi investors to directly gain exposure to the high-demand property investment market in the holy cities.

Pre-IPO structure: Government entities own 60.8% of Umm Al Qura’s capital, while the remaining shares belong to private institutions and individuals, the document reads.

Financials: The company boasted a cash position of SAR 914.8 mn, with SAR 24.6 in total assets as of 30 June 2024, in addition to “an acceptable debt-to-equity ratio.” The ITF did not provide further details on Umm Al Qura’s revenues or net income.

ADVISORS- Albilad Capital is quarterbacking the transaction as lead manager, while also being joint bookrunner and underwriter alongside GIB Capital, AlRajhi Capital, and Alinma Invest.

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