Jeddah-headquartered developer Umm Al-Qura for Development & Construction (UAQ) has signed a shareholding investment agreement with Takatuf Holding Group Company, a subsidiary of Riyadh-based Abdullah Sulaiman Al-Rajhi Holding Company. Takatuf Holding Group Company has committed to a subscription of 8,875,740 shares, which represents about 6.8% of the shares on offer. The agreement enables Takatuf Holding Group Company to become the cornerstone investor or major investor in UAQ, representing about 0.62% of the company’s share capital. The statement added that the price range for the initial public offering (IPO) is set at  $3.73-$4 a share. The offering size will be  $488m-$523m, reflecting a total market capitalisation of SR20bn-SR21.5bn $5.3bn-$5.7bn. "The final IPO price will be determined at the end of the book-building process," UAQ said in its official statement. UAQ announced plans for an IPO and listing on the Saudi Stock Exchange (Tadawul) in February. The firm is the main developer of the multibillion-dollar Masar destination in Mecca, a mixed-use development that is located in the vicinity of the Holy Mosque. Saudi Arabia's Capital Market Authority approved the registration of the company's share capital and the offering of about 130.8 million shares, equating to 9.09% of the company's post-capital increase shares, on 24 December 2024. The proposed IPO plan involves issuing new shares through a capital increase, with the proceeds being deployed for "funding land settlements, infrastructure and the activation of the Masar Mecca development, along with project financing and other general corporate expenditures", the statement added. Local financial firms including Albilad Capital, GIB Capital, AlRajhi Capital and Alinma Investment have been appointed as joint financial advisors, joint book runners and co-underwriters, with Lazard Saudi Arabia serving as an adviser to the company. Project background UAQ announced plans to develop Kaar Gateway in 2008, a multimodal transportation hub with King Abdulaziz Road as its core component. In 2012, the Jeddah office of Jordanian engineering consultancy Aces was awarded a contract to carry out geotechnical studies for the master-planned project. The local Nesma & Partners won a $1.75bn contract for Kaar Gateway in 2015. Its scope of work included: Bus rapid transit system infrastructure Bus terminals and stations Earthworks and rock excavation Geotechnical investigation Interchanges, bridges, underpasses and other highway structures Metro tunnel and station (core and shell) Parking and parking structures Pedestrian boulevard, landscape and hardscape Retaining walls Road construction Urban realm Utility networks The project’s infrastructure phase is understood to include pedestrian underpasses and service tunnels 3,650 metres in length and 320 metres wide across an area spanning 1.25 square kilometres. Masar is also understood to comprise direct links to the Haramain high-speed railway. (ICE RIYADH)

Fonte notizia: Meed