Saudi-based Umm Al Qura for Development and Construction today (February 18) announced it has issued a supplementary prospectus and signed a binding investment undertaking agreement for its Initial Public Offering (IPO) with Takatuf Holding Group Company - a limited liability company wholly owned by Abdullah Sulaiman Al Rajhi Holding Company (ASAQ) - as its cornerstone investor.
As the cornerstone investor, Takatuf has committed to a subscription of 8.87 million shares, representing 6.8% of the offer shares, it stated.
A specialist in financial investments, Takatuf is also involved in the development of large-scale, multi-use projects in the kingdom through its subsidiaries. Takatuf Holding Group is a key investor in the Saudi markets.
According to Umm Al Qura, the Cornerstone Commitment represents approximately 0.62% of the company’s share capital after the Offering.
A key Saudi-based group, Umm Al Qura was established in 2012 for undertaking the development of King Abdulaziz Road in Makkah which originally contained six unplanned settlements neighbourhoods; the project site area is known as Masar Destination.
The Saudi group had recently announced the price range for its IPO as well as the commencement of the institutional book-building period for participating parties.
The company had set SAR14 to 15 per share price range for the Offering.
On December 24 last year, the Capital Market Authority had given the go-ahead to Umm Al Qura for the registration of its share capital and the offering of 131 million shares.
Speaking on the occasion, CEO Yasser Abdulaziz Abu Ateek said: "We are pleased to welcome Takatuf Holding Group Company, a wholly owned subsidiary of Abdullah Sulaiman Al Rajhi Holding Company, as a cornerstone investor for our IPO."
"This step reaffirms the attractiveness of the investment opportunities Umm Al Qura offers and its ability to attract investors. It also reflects Takatuf’s confidence in the company’s business model and growth strategy. We are delighted to collaborate with such a distinguished partner to create sustainable value for our shareholders," he added.
Umm Al Qura said the institutional book building period will end on February 20 and the final offering price will be determined at the end of the book-building process.
For the key listing, Umm Al Qura has signed up Albilad Capital as joint financial advisor, lead manager, bookrunner and underwriter; GIB Capital and AlRajhi Capital as joint fnancial advisors, bookrunners and underwriters as well as Alinma Invest as joint bookrunner and underwriter.
Lazard has taken up the role of company advisor and FGS Global that of media and communications advisor.-TradeArabia News Service