Saudi Arabia’s public wealth fund PIF plans to sell 3.3% of its stake in Umm Al Qura for Development and Construction Co through an accelerated bookbuild, one of the banks arranging the deal said on Tuesday.
The sale to institutional investors covers up to 48 million shares in the company, which is developing the Masar Destination in Mecca.
Pricing will be set through the bookbuilding process, with results due later on Tuesday, SNB Capital, one of the bookrunners, said.
Masar shares closed at 21.98 riyals, valuing the stake at about 1.06 billion riyals ($281.3 million).
PIF will retain around 16.3% of Masar after the transaction. The bookrunner said the offering was fully covered, with demand exceeding the deal size.
Umm Al Qura’s Masar redevelopment project in Mecca is valued at 100 billion riyals ($26.66 billion). The company listed in March after raising $523 million in its initial public offering.
Saudi Arabia’s market regulator this year allowed foreign investment in listed companies that own real estate within Islam’s two holiest sites of Mecca and Medina, as the Gulf country looks to attract more investment.
($1 = 3.7506 riyals)
Reuters
