Umm Al Qura for Development and Construction share price jumped the maximum 30% on its Tadawul debut yesterday, to close at SAR 19.50 apiece on its first day of trading up from its final IPO price of SAR 15 per share, according to market data. Some 9.99 mn shares were traded, signalling strong investor interest and high liquidity.

The company’s shares are allowed to fluctuate within a ±30% band, with a static fluctuation band of ±10% on the first three days of trading. Starting from the fourth day, shares will be allowed to trade at ±10% as circuit breakers take effect, and the static fluctuation limit will be removed.

REFRESHER- The PIF-backed developer took a 9.1% stake to the main market in a SAR 2 bn IPO that was 241x oversubscribed by institutional investors and 20x oversubscribed by retail investors.

The company also published its first post-IPO earnings: Umm Al Qura reported a 57.3% y-o-y rise in net income to SAR 498.6 mn in 2024, it said in an earnings release (pdf). Meanwhile, revenue rose 84.6% y-o-y to SAR 1.82 bn, backed by the sale of nine land plots and lease revenues from three plots.

ADVISORS- Albilad Capital quarterbacked the transaction as lead manager, while also being joint financial advisor, joint bookrunner, and co-underwriter alongside GIB Capital, and AlRajhi Capital. Alinma Investment was also joint bookrunner and co-underwriter. Lazard was appointed as advisor to Umm Al Qura. Receiving agents included SNB Capital, SAB Invest, BSF Capital, ANB Capital, and Derayah Financial, among others.

THE IPO PIPELINE AHEAD-

Key Tadawul listings to watch out for in 2025:

  • The PIF’s Saudi Global Ports tapped banks including Goldman Sachs and HSBC to arrange an upcoming IPO;
  • PIF-backed Tabreed District Cooling reportedly hired Citigroup and SNB Capital to manage a potential IPO;
  • Medical procurement firm Nupco — a unit of the PIF — tapped Rothschild & Co as financial advisor for its potential IPO;
  • Budget airline Flynas is reportedly looking to go public this year;
  • BNPL platform Tabby plans to IPO during the 2025-2026 window;
  • Local tech services firm Ejada Systems secured approval from the Capital Markets Authority (CMA) to take a 45% stake to market;
  • Marketing Home Group got the thumbs up from CMA to go public with a 30% stake;
  • Sport Clubs Company received CMA approval to debut a 30% stake on Tadawul.

Zooming out: A total of 38 companies and 22 funds are planning to list across the region this year, signaling continued investor confidence in MENA markets. Saudi Arabia is set to lead the charge with 26 upcoming public offerings.

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