DalipalHoldings’ export-oriented manufacturing hub in Dammam is expected to go live in 2027, Founder and Chairman of the Hong Kong-listed oil and gas pipes manufacturer Meng Fanyong told EnterpriseAM Saudi on the sidelines of the Capital Markets Forum in Riyadh last week.

Distribution + production capacity: The company plans to earmark 50% of the facility’s production capacity to cover shortages in the local market, Fanyong said, adding that the new facility’s first phase will have an estimated annual capacity of 300k tons. Dalipal plans, at a later stage, to move all of its export-earmarked production to the Dammam facility, Fanyong said.

ICYMI- The company tapped homegrown BMG Financial Group as financial advisor for its upcoming private offering, whereby it is looking to raise USD 600 mn from strategic investors to support the first phase of its Saudi expansion. Dalipal is also planning a dual listing on the Saudi Exchange to raise an additional USD 1.5 bn by 4Q for the second phase of its Saudi expansion.

First mover advantage: Dalipal is set to become the first producer of hydrogen and drilling pipes in the region, giving it a competitive edge in the market, Fanyong said. The company is also planning to launch an R&D center in the Kingdom.

Why Saudi Arabia? Fanyong attributed the choice of Saudi Arabia to the country’s openness to international investors, economic incentives for localization and knowledge transfer, and political and currency stability.

What’s next? The manufacturer is looking to attract the attention of big family offices and anchor investors like Aramco and the PIF to participate in its upcoming private offering, he said.

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