Saudi sovereign wealth fund PIF has announced the completion of the sale of part of its stake in Umm Al Qura for Development and Construction Company (MASAR), through an accelerated bookbuild offering.

The offering comprised 48 million shares, representing 3.3% of Masar’s share capital.

The total value of the offering was more than SAR950 million ($253 million), with a final offer price of SAR19.8 per share.

Both local and international institutional investors participated in the offering. The offering was oversubscribed, reflecting investors’ confidence in Masar and the attractiveness of the Saudi capital market.

PIF’s remaining stake equates to 234.3 million shares in the company, representing 16.3% of Masar’s share capital. The offering contributes to increasing the Saudi developer’s free float and further broadens its institutional investor base.

Saad Alkroud, 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. The offering aligns with PIF’s investment strategy, which focuses on deploying capital and income into the domestic PIF ecosystem, to further strengthen Saudi Arabia’s private sector and deepen Saudi capital markets."

"This mandate allows PIF to continue to drive the sustainable development and diversification of the country’s economy," he added.-TradeArabia News Service