Umm Al Qura for Development issues supplementary prospectus

Logo of Umm Al Qura for Development and Construction Co. 

Umm Al Qura for Development and Construction Co. issued today, Feb. 18, a supplementary prospectus related to its potential initial public offering (IPO) on the Main Market (TASI).

The Saudi company, which owns Masar Destination, stated that the supplementary prospectus was issued after receiving on Feb.5 a binding subscription commitment from Takatuf Holding Group, constituting material information warranted for pre-IPO disclosure.

Takatuf Holding committed to subscribing as a cornerstone investor to 8.88 million of Umm Al Qura for Development’s offer shares, representing approximately 0.62% of the latter’s post-IPO capital. The company agreed to allocate these shares to Takatuf Holding as part of the offering.

Takatuf Holding, a limited liability company established in 2011, is wholly owned by Abdullah Sulaiman Alrajhi Holding Co. (ASAC) and is headquartered in Riyadh. It specializes in financial investments and the development of large-scale, mixed-use projects in Saudi Arabia through its subsidiaries.

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Additionally, Takatuf Holding fully owns Erth Real Estate Development Co., which previously acquired three under-development land plots from Umm Al Qura for Development.

Service agreements were also signed between the two parties.

Given this existing relationship, potential future collaborations may include land acquisitions, joint ventures (JVs), or other strategic projects, subject to market conditions and economic trends.

As a key investor in Saudi markets, Takatuf Holding’s involvement is expected to drive Umm Al Qura for Development’s growth potential and long-term strategic objectives.

On another note, Umm Al Qura for Development entered into new material agreements and amended an existing financing deal. It also pledged certain land plots as collateral under a previously signed loan agreement.

According to data available on Argaam, Umm Al Qura for Development plans to offer 130.79 million shares on TASI, representing approximately 9.09% and 10% of its post- and pre-IPO capital, respectively. The IPO price range has been set between SAR 14-15 per share.

The company’s current capital stands at SAR 13.08 billion, divided into 1.31 billion shares, at a nominal value of SAR 10 per share.

To view Prospectus