Retail subscription to 13.08M UQDC shares starts on TASI today

Logo of Umm Al Qura for Development and Construction Co.

 Umm Al Qura for Development and Construction Co. (UQDC) launches today, March 5, a retail offering for 13.08 million shares on the Main Market (TASI) at SAR 15 each, as determined by the book-building process.

The shares allocated to individual subscribers represent 10% of total shares on offer.

For More IPOs

The subscription period continues for three days until March 9.

On Dec. 23, 2024, the Capital Market Authority (CMA) approved the company’s application to list and offer 130.79 million shares on TASI, representing 9.09% of its post-IPO capital.

Institutional offering ended last week, with a coverage ratio of 241 times.

UQDC will allocate 8.88 million shares, representing 0.62% of its post-IPO capital, to Takatuf Holding Group as a cornerstone investor.

MASAR’s developer will be the third to list on TASI this year following Derayah Financial and Arabian Company for Agricultural & Industrial Investments’ (Entaj) IPO on Feb. 20. and Feb. 26, respectively.

Tadawul witnessed 14 IPOs last year, following listings by  Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. on Nov. 19,  Almoosa Health Co. on Dec. 23 and Nice One Co. on Dec. 24.

Company info

UQDC is a closed joint-stock company in Saudi Arabia, established in 2012 by royal decree. It develops real estate assets along King Abdulaziz Road in Makkah, acquiring, managing, investing in, selling, and leasing properties under "Masar" brand.

The company’s activities include land acquisition, sales, subdivision, off-plan sales, and property management. It also handles residential and commercial construction, including schools, hospitals, hotels, roads, bridges, and tunnels.

UQDC’s pre-IPO capital stands at SAR 13.08 billion, divided into 1.31 billion shares at SAR 10 per share. Following the offering, capital will rise to SAR 14.39 billion with 1.44 billion shares.

MASAR

MASAR is one of the region’s largest urban redevelopment projects, located in western Makkah. It spans 3.65 km from the Third Ring Road and Umm Al-Qura Road to Jabal Omar, covering 1.25 million square meters across 205 land plots. The net built-up area is 460,900 square meters, excluding roads, open spaces, and service areas.

As of November 2024, 99.77% of core infrastructure work was complete, with full completion expected in H1 2025.

According to the prospectus, MASAR will include residential apartments, serviced apartments, hotels, retail centers, healthcare facilities, and office spaces.

The table below shows the percentage of each asset type within MASAR’s investment land:

With core infrastructure nearing completion, the development strategy focuses on four areas. The company will develop and retain 28% of investment land, either directly or through joint ventures, while 4% will be developed and sold.

Additionally, 14% will be leased, and 54% will be sold.

Superstructure development began in 2022 for select self-developed plots and is set to finish by 2026. The full MASAR Destination project is expected to complete by 2039.