Umm Al Qura for Development and Construction has made a remarkable entrance into the Saudi Exchange’s Main Market, with its shares surging 30% on the first day of trading. The stock opened at SAR15 ($4) per share and quickly climbed to SAR19.5 ($5.2), following a highly successful initial public offering (IPO) that raised $523 million.
A Strong Market Debut
As the owner, developer, and operator of Masar Destination—one of the largest urban redevelopment projects in Makkah—Umm Al Qura attracted significant investor interest. The IPO was oversubscribed 241 times in the institutional tranche and 20 times in the retail tranche, demonstrating strong demand and market confidence in the company’s vision and growth potential.
The retail subscription process, which ran from March 5 to March 9, offered 13.1 million shares (10% of the total offering). More than 1 million individual investors participated, generating a demand of SAR3.93 billion ($1.05 billion). Each subscriber received a minimum allocation of 10 shares, with the remaining shares distributed on a pro-rata basis. 
With the final offer price set at SAR15 per share, Umm Al Qura debuted with an initial market capitalization of SAR21.6 billion ($5.75 billion).
Strategic Growth and Vision 2030 Alignment
CEO Yasser AbuAteek expressed enthusiasm for this milestone, stating, “This IPO marks a transformational moment for Umm Al Qura as we establish ourselves on the Saudi Exchange. The overwhelming response from investors reinforces our commitment to shaping the future of Makkah with Masar Destination, a world-class multi-use development.”
He further emphasized the company’s dedication to aligning with Saudi Arabia’s Vision 2030, enhancing the experience for residents, pilgrims, and visitors while driving economic and infrastructural development.
Masar Destination: A Landmark Redevelopment
Founded in 2012, Umm Al Qura has been at the forefront of urban transformation in Makkah, particularly with the development of King Abdulaziz Road, which previously contained six unplanned settlements. Today, Masar Destination is a sprawling, strategically located project featuring 205 investment plots over 641,000 square meters, with a total gross floor area (GFA) of 5.7 million square meters. Designed to serve both residents and visitors, Masar aims to redefine Makkah’s urban landscape with modern infrastructure, hospitality, retail, and cultural spaces.
Financial Partners and Market Confidence
Umm Al Qura’s IPO success was supported by a consortium of financial advisors and bookrunners. Albilad Capital led the process as joint financial advisor, lead manager, bookrunner, and underwriter. GIB Capital, AlRajhi Capital, and Alinma Invest also played key roles as joint financial advisors, bookrunners, and underwriters.
With its strong IPO performance and long-term strategic vision, Umm Al Qura is now well-positioned to drive further development in Makkah and contribute to Saudi Arabia’s broader economic transformation.
