Prime Highlights
- Saudi Arabia’s Public Investment Fund (PIF) sold a portion of its Masar shares, raising over SR950 million and attracting strong demand from institutional investors.
- The move broadens Masar’s investor base and supports PIF’s strategy to strengthen domestic investment and the private sector.
Key Facts
- After the sale, PIF retains 234.3 million shares in Masar, equivalent to a 16.3% stake.
- The sale increases Masar’s free float, enhancing market liquidity and encouraging foreign participation.
Background
Saudi Arabia’s Public Investment Fund (PIF) has sold part of its stake in Umm Al Qura for Development and Construction Co., also known as Masar, for over SR950 million ($253.2 million).
The sale included 48 million shares, or 3.3% of Masar’s total shares, at SR19.8 per share. The sale was carried out through a fast-track process, letting institutional investors buy shares quickly without lowering the stock price.
Masar is a leading urban development company working on big infrastructure and real estate projects, including the SR100 billion redevelopment in Makkah. The company went public in March, raising $523 million.
The offering attracted both local and international investors and was oversubscribed, reflecting confidence in Masar’s strategy and the broader Saudi capital market.
Saad Al-Kroud, head of the Local Real Estate Investment Division at PIF, said, “By creating opportunities for institutions to invest in Masar, PIF is further broadening the company’s investor base.”
After the sale, PIF still owns 234.3 million Masar shares, representing a 16.3% stake in the company. The sale also increases the company’s free float, supporting recent market reforms aimed at boosting liquidity and encouraging foreign participation.
Earlier this year, Saudi Arabia allowed foreign investors to buy shares in listed companies owning real estate in Makkah and Madinah, further enhancing the Kingdom’s capital market appeal.
