CMA OKs Umm Al Qura for Development’s 130.8M-share IPO

Logo of Umm Al-Qura Development and Construction Co.

The Capital Market Authority (CMA) approved on Dec. 23 the application of Umm Al Qura for Development and Construction Co., (the owner of Masar Destination) to register and float 130.79 million shares, or 9.09% of its capital, in a public offering.

The prospectus will be published within sufficient time prior to the start of the subscription period.

An investment decision without reading the terms and conditions (T&Cs) carefully or fully reviewing its content may involve high risk. Therefore, investors should carefully read the T&Cs, which include detailed information on the company, offering, and risk factors, the market regulator said in a statement today, Dec. 24.

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If the T&Cs prove difficult to understand, it is recommended to refer to the financial advisor for more information.

The CMA stressed that its approval should never be considered as a recommendation to subscribe to the company and merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

The CMA’s approval is valid for six months and will be cancelled if the offering and listing are not finalized within this period.

Umm Al Qura for Development was established in 2012, and its head office is based in Makkah. The company focuses on developing King Abdulaziz Road, and owns properties in the area, converting them into organized plots. In addition, the company manages, invests in, sells, leases, and owns land plots to develop them. It also handles the construction, demolition, and maintenance works, according to Argaam’s data.

The King Abdulaziz Road project is one of Makkah’s largest developments, spanning 3,500 meters in length from the Third Ring Road intersection with Jeddah Highway to the First Ring Road in Jabal Omar.

It features a pedestrian-only path leading to the Grand Mosque, stretching southward from Umm Al-Qura Road to span over some slums that cover an area of 345 hectares, including proposed public parking at the western roundabout.