Saudi Arabia’s Umm Al Qura for Development and Construction followed overwhelming demand from institutions with strong support from retail investors as more than 1 million individuals submitted orders totalling SR3.93bn (US$1.05bn), enough to cover the entire SR1.96bn deal more than twice.

The retail tranche is only 10% of the offering, making it more than 20 times covered.

Institutions showed strong conviction for the all-primary offer with the deal 241 times covered at the top of the SR14–SR15 range.

The capital raise supports the Masar Destination project involving the redevelopment of a 3.5km stretch of Mecca with accommodation, retail outlets and public amenities to capitalise on growing tourist numbers and pilgrims visiting the holy city.

Refunds of excess subscription money will be processed by Sunday and a trading date is still to be announced.

Albilad Capital was lead manager, and joint bookrunner with Alinma Investment Company, Al Rajhi Capital and GIB Capital. Lazard advised.

Also on Thursday, Arabian Company for Agricultural and Industrial Investment, known as Entaj, said its shares would debut on Tadawul on Monday after pricing at SR50 in its SR450m IPO.

Source: IFR