Saudi Arabia’s Public Investment Fund (PIF) has sold a portion of its stake in Mecca developer Umm Al Qura for Development and Construction (Masar) for SAR 950.4 million ($253.4 million).

The large block of shares, representing 3.3 % of Masar’s issued share capital, was sold to local and institutional investors at a final offer price of SAR 19.8 per share during a rapid market transaction, just hours after its launch on Tuesday.

The sovereign wealth fund had announced on the Saudi Stock Exchange (Tadawul) late Tuesday an accelerated bookbuild offering (ABO) to divest up to 48 million shares in the Saudi firm, which is behind the SAR 100 billion ($26.6 billion) mixed-use real development project, the Masar Destination in Makkah (Mecca).

The offering was oversubscribed just before midnight. Following the completion of the sale, PIF’s remaining 16.3 % shareholding in Masar will be subject to a 90-day contractual lock-up undertaking.

The sale of the large block of shares is to be finalised through off-market negotiated deals on November 26, 2025.

Citigroup and SNB Capital have been appointed joint global coordinators and bookrunners for the offering.

PIF will retain around 16.3% of Masar after the transaction. Umm Al Qura's Masar redevelopment project in Mecca is valued at 100 billion riyals ($26.66 billion). The company listed in March after raising $523 million in its IPO.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com