Umm Al Qura for Development and Construction (Umm Al Qura), the developer of Masar, a mixed-use project in Mecca, expects to raise between SAR1.8 and SAR2 billion ($480-$533 million) through an initial public offering (IPO) on the Saudi stock exchange.
The company has set the IPO price range between SAR14 and SAR15 per share.
This month the company announced plans to float just over 9 percent of its capital, or 130.8 million shares, on the Saudi bourse.
The net proceeds will cover costs associated with land settlements, infrastructure and project financing expenditures.
Funds will also be allocated for general corporate expenditures, such as sales, marketing, administrative, operating and financing.
The SAR100 billion ($26.7 billion) Masar project is one of the largest redevelopment projects in the region, stretching more than 3.5km along Mecca’s western border. It will consist of 205 investment plots, covering a total area of 64 hectares and a total gross floor area of 5.7 million sq m.
The project will have 18,000 serviced apartments, 23,000 hotel keys, 9,000 residential units and a retail leasable area of 216,000 sq m.
Leave a Reply