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Shares of Umm Al Qura for Development and Construction rose by the maximum 30% on Monday's Tadawul debut following its SR1.96bn (US$523m) IPO.
Institutional demand for the IPO was more than US$125bn, while retail demand topped US$1bn. Shares priced at the top of the SR14–SR15 range and retail received 10% of the deal.
The deal is novel in comprising only primary shares but, reassuringly for the development of the Saudi market, demand was just as strong as secondary share sales.
The stock opened on Monday at SR16.50 and quickly hit the SR19.50 maximum, where it closed. Just under 10m shares changed hands, approximately 7.6% of the 130.8m shares offered for a 9.1% free-float.
Proceeds will be used for a real estate development in Mecca, including accommodation, retail outlets and public amenities.
Albilad Capital was lead manager, and joint bookrunner with Alinma Investment Company, Al Rajhi Capital and GIB Capital. Lazard advised.
Source: IFR
