#Saudi Developer Umm Al Qura Draws $126 Billion in Orders for IPO - Bloomberg

Saudi Developer Umm Al Qura Draws $126 Billion in Orders for IPO - Bloomberg

Saudi Arabian firm Umm Al Qura for Development & Construction Co. has drawn about $126 billion in orders for its initial public offering in Riyadh, signaling continued robust demand for new listings in the kingdom.

The group, backed by Saudi Arabia’s sovereign wealth fund, is set to raise $523 million via the first-time share sale, Umm Al Qura said in a statement on Thursday. The demand implies an oversubscription of 241 times by local and international institutional investors.

The final price for the offering was set at 15 riyals ($4) per share, the top end of a marketed range, indicating a market capitalization of around $5.75 billion, the group said.

IPO activity in Saudi Arabia is off to a strong start this year after more than $4 billion in first-time share sales in 2024. Offerings for online broker Derayah Financial Co. and the Arabian Co. for Agricultural and Industrial Investment are already underway, while the regulator has greenlit listings for tech firm Ejada Systems Ltd. and packaging firm United Carton Industries Co.

Umm Al Qura is developing one of the largest projects in the Muslim holy city of Mecca, which is one of Saudi Arabia’s main draws to grow its tourism industry and diversify its economy away from oil. The kingdom aims to accommodate 30 million foreign worshippers a year by 2030.

The group unveiled its plans to go public shortly after Saudi Arabia started allowing foreigners for the first time to invest in listed companies with real estate in Mecca. Umm Al Qura’s main development is expected to include more than 50,000 hospitality and residential units and has an estimated value of about $27 billion.

The company said it had a cash position of about $244 million as of June 30 and total assets of around $6.6 billion.

Albilad Investment Company, GIB Capital, Al Rajhi Capital and Alinma Investment Company are among those handling the IPO process for Umm Al Qura. Lazard Inc. is acting as financial adviser.

#Saudi bourse extends losses on weak earnings; ENBD lifts #Dubai | Reuters

Saudi bourse extends losses on weak earnings; ENBD lifts Dubai | Reuters

Saudi Arabia's stock market in the Gulf ended lower on Thursday, extending losses for a third session amid a slowdown in corporate earnings, while top lender Emirates NBD helped the Dubai index.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1%, hit by a 1% fall in Al Rajhi Bank (1120.SE), opens new tab, while ACWA Power Company slid 2.7%.

ACWA Power on Tuesday reported annual profit ahead of analysts' estimates but missed on revenue.

Elsewhere, Saudi Basic Industries Corp (2010.SE), opens new tab closed 3.1% lower, extending losses from the previous session when it reported a slightly wider loss in the fourth quarter.

However, Company for Cooperative Insurance (8010.SE), opens new tab rose 1.8%, after the insurer met analysts' estimates.

Dubai's main share index (.DFMGI), opens new tab added 0.2%, helped by a 1.9% rise in Emirates NBD Bank (ENBD) (ENBD.DU), opens new tab.

Earlier this week, ENBD, Dubai's top lender, made a mandatory cash offer to buy Emirates Islamic Bank (EIB.DU), opens new tab at 11.95 dirhams ($3.25) per share.

In Abu Dhabi, the index (.FTFADGI), opens new tab fell 0.3%, pressured by a 1.2% fall in ADNOC Gas (ADNOCGAS.AD), opens new tab.

Separately, UAE investment platform 2PointZero is targeting a stock market listing in Abu Dhabi this year, CEO Mariam bint Mohammed Almheiri said on Wednesday.

However, oil prices rose more than 1% on Thursday as supply concerns resurfaced after U.S. President Donald Trump revoked a license granted to U.S. oil major Chevron (CVX.N), opens new tab to operate in Venezuela.

The Qatari index (.QSI), opens new tab slipped 0.5%, hit by a 2.1% fall in Qatar Islamic Bank (QISB.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.1%, with Commercial International Bank (COMI.CA), opens new tab retreating 1.1%.

Meanwhile, Egypt will increase the minimum wage for public sector workers to 7,000 Egyptian pounds ($138.50) per month from July, aligning it with the private sector's minimum wage established in early February, Finance Minister Ahmed Kouchouk announced during a press conference on Wednesday.

Kuwait was closed for a public holiday.