Retail Investors Oversubscribe UQDC’s IPO by 20 Times
Umm Al Qura for Development and Construction Company (UQDC) has received an overwhelming response to its initial public offering (IPO). The retail portion alone attracted over $1 billion in orders, UQDC’s making it more than 20 times oversubscribed, according to International Financing Review (IFR). This strong demand reflects investor confidence in the company’s growth potential and strategic projects.
IPO Details and Share Allocation
The IPO consists of 130.79 million shares, representing 9.09% of UQDC’s total shares after listing. Each share is priced at SAR 15, valuing the company at approximately SAR 21.58 billion ($5.75 billion). Retail investors received 10% of the shares, equating to 13.08 million units. The subscription period for retail investors ran from March 5 to March 9, 2025.
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Institutional Investors Show Strong Interest
Before the retail offering, institutional investors demonstrated exceptional interest. The institutional tranche was oversubscribed 241 times, with total orders reaching SAR 473 billion ($126 billion). This high demand highlights investor trust in UQDC’s vision and its contribution to Makkah’s urban transformation, in line with Saudi Vision 2030.
Masar Project: A Game-Changer for Makkah
UQDC is leading the Masar project, a large-scale urban redevelopment spanning 3.65 kilometers in western Makkah. This ambitious initiative covers 1.25 million square meters across 205 plots. It aims to modernize infrastructure and accommodate over 42 million visitors expected by 2030. By November 2024, UQDC had completed 99.77% of the project’s core infrastructure, with full completion scheduled for mid-2025.
Use of IPO Funds
The funds raised will support land settlements, infrastructure development, and the activation of the Masar destination. UQDC will also use the proceeds for corporate expenses such as sales, marketing, operations, and financing.
Strong Backing and Future Trading Plans
UQDC has the backing of key government investors, including the General Organization for Social Insurance (GOSI) and the Public Investment Fund (PIF), which hold 26% and 21% stakes, respectively. This strong shareholder base, combined with oversubscription levels, reinforces confidence in UQDC’s ability to drive Makkah’s transformation.
The final allocation of shares is set for March 13, 2025, with refunds for surplus subscriptions processed by March 16, 2025. UQDC’s shares will start trading on the Saudi Exchange’s Main Market after completing regulatory approvals.
UQDC’s successful IPO marks a major milestone in its journey to modernize Makkah. The strong investor response highlights the market’s trust in the company’s vision and its alignment with Saudi Vision 2030.
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