Saudi Arabia’s Public Investment Fund (PIF) has sold a part of its stake in Mecca developer Umm Al Qura for Development and Construction (Masar) for SAR 950.4 million ($253.4 million).
A huge block of shares amounting to 3.3 percent of the issued share capital of Masar was sold to local and institutional investors at a final offer price of SAR 19.8 per share in a fast-moving transaction, soon after its launch on Tuesday.
The sovereign wealth fund had declared on the Saudi Stock Exchange (Tadawul) late Tuesday an accelerated bookbuild offering (ABO) to divest up to 48 million shares in the Saudi company, which I estimated at around SAR 100 billion ($26.6 billion) mixed-use real development project, the Masar Destination in Makkah (Mecca).
Therefore, it was oversubscribed at the time of offering, just before midnight. After the sale, the remaining 16.3 percent shareholding of PIF in Masar will have a 90-day contractual lock-up undertaking.
The substantial block of shares will be sold via off-market negotiated deals on November 26, 2025. Citigroup and SNB Capital are the new joint global coordinators and bookrunners to the offering.
PIF will own approximately 16.3 percent of Masar following the transaction. The Masar redevelopment project in Mecca at Umm Al Qura is estimated to be 100 billion riyals ($26.66 billion). The company was listed in March following a raise of $ 523million in its IPO.
