PIF raises $253m from stake sale in Mecca project developer

The Public Investment Fund (PIF) has raised nearly SAR950 million ($253 million) from the sale of 3.3 percent of its stake in Saudi-listed Umm Al Qura for Development and Construction Company through an accelerated bookbuild offering.

The final offer price was set at SAR19.8 per share, according to Citigroup, SNB Capital and EFG Hermes KSA, joint global coordinators and bookrunners.

The sale was executed through 136 negotiated deals before the Saudi stock market opened on Wednesday.

The Saudi sovereign wealth fund had offered up to 48 million shares in the builder of the SAR100 billion Masar, a mixed-use project in Mecca, to institutional investors.

Masar shares closed almost 3 percent lower at SAR21.98 on Tuesday, valuing the stake at nearly SAR1.1 billion. The developer’s share is up nearly 20 percent since its March listing.

PIF will continue to hold 16.3 percent of Umm Al Qura after the transaction.
Masar will not receive any proceeds from the offering. The transaction will not dilute the shareholdings of the company’s other investors, a statement said.

Further reading:

• Umm Al Qura to list on Saudi bourse next week
• More developers explore IPOs despite Tadawul turbulence
• Mecca project developer targets $533m from Saudi listing

Masar is one of the largest redevelopment projects in the region, stretching more than 3.5km along Mecca’s western border. It will comprise 205 investment plots covering a total of 64 hectares and a gross floor area of 5.7 million square metres.

The project will have 18,000 serviced apartments, 23,000 hotel rooms, 9,000 residential units and a retail leasable area of 216,000 square metres.

In November, the developer said net profit rose to SAR517 million in the third quarter of 2025, compared to SAR117 million a year earlier. Revenue surged 374 percent to SAR1.3 billion during the quarter.