(Bloomberg) -- Saudi Arabian firm Umm Al Qura for Development & Construction Co. has drawn about $126 billion in orders for its initial public offering in Riyadh, signaling continued robust demand for new listings in the kingdom.
Most Read from Bloomberg
-
Cuts to Section 8 Housing Assistance Loom Amid HUD Uncertainty
-
The Trump Administration Takes Aim at Transportation Research
-
Shelters Await Billions in Federal Money for Homelessness Providers
-
NYC’s Congestion Pricing Pulls In $48.6 Million in First Month
-
New York’s Congestion Pricing Plan Faces Another Legal Showdown
The group, backed by Saudi Arabia’s sovereign wealth fund, is set to raise $523 million via the first-time share sale, Umm Al Qura said in a statement on Thursday. The demand implies an oversubscription of 241 times by local and international institutional investors.
The final price for the offering was set at 15 riyals ($4) per share, the top end of a marketed range, indicating a market capitalization of around $5.75 billion, the group said.
IPO activity in Saudi Arabia is off to a strong start this year after more than $4 billion in first-time share sales in 2024. Offerings for online broker Derayah Financial Co. and the Arabian Co. for Agricultural and Industrial Investment are already underway, while the regulator has greenlit listings for tech firm Ejada Systems Ltd. and packaging firm United Carton Industries Co.
Umm Al Qura is developing one of the largest projects in the Muslim holy city of Mecca, which is one of Saudi Arabia’s main draws to grow its tourism industry and diversify its economy away from oil. The kingdom aims to accommodate 30 million foreign worshippers a year by 2030.
The group unveiled its plans to go public shortly after Saudi Arabia started allowing foreigners for the first time to invest in listed companies with real estate in Mecca. Umm Al Qura’s main development is expected to include more than 50,000 hospitality and residential units and has an estimated value of about $27 billion.
The company said it had a cash position of about $244 million as of June 30 and total assets of around $6.6 billion.
Albilad Investment Company, GIB Capital, Al Rajhi Capital and Alinma Investment Company are among those handling the IPO process for Umm Al Qura. Lazard Inc. is acting as financial adviser.
Most Read from Bloomberg Businessweek
-
Warner Bros. Movie Heads Are Burning Cash, and Their Boss Is Losing Patience
-
Walmart Wants to Be Something for Everyone in a Divided America
-
China Learned to Embrace What the US Forgot: The Virtues of Creative Destruction
-
OXO Fought Back Against the Black Spatula Panic. People Defected Anyway
©2025 Bloomberg L.P.