United Carton Industries’ IPO sees muted debut on Tadawul

United Carton Industries’ (UCIC) shares dropped 1.5% on their debut trading session to close at SAR 49.3 apiece, despite a solid order book that saw the institutional tranche 126x oversubscribed and the retail component 8.9x oversubscribed.

The company did look a little overvalued, which could have caused the dent in its debut price, Chiro Ghosh, vice president for sell-side research at Sico Bank, told Bloomberg.

REFRESHER- The SAR 600 mn IPO is the first on the main market since tariff-driven volatility rattled global markets. The carton-maker floated a 30% stake in a secondary offering on Tadawul, which saw its selling shareholders rake in all proceeds.

What’s next: The company’s shares are allowed to fluctuate within a 30% band, with a static fluctuation band of 10% on the first three days of trading. Starting from the fourth day, shares will be allowed to trade at a 10% volatility as circuit breakers take effect, and the static fluctuation limit will be removed.

ADVISORS- Al Rajhi Capital quarterbacked the transaction as lead manager, financial advisor, bookrunner, and underwriter, with Stat Law Firm providing counsel. Meanwhile, Gibson, Dunn, and Crutcher Law Firm acted as counsel for Al Rajhi Capital.

ALSO IN THE PIPELINE-

• Specialized Medical Company (SMC) is set to price its IPO on Tuesday, 3 June;
• Budget air carrier Flynas priced its IPO at SAR 80 per share;
• Companies that have yet to move to the step beyond receiving CMA approval include Ejada Systems, Marketing Home Group, Sport Clubs Company, and Dar Al Majed ;
• Companies that tapped banks for potential IPOs include the PIF’s Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby ;
• Alramz Real Estate and Al Othaim Investment announced plans to float a 30% stake on Tadawul this year;
• F&B players Barns, Half Million, Deemah, and Hashi Bashi are said to be sounding out banks for potential debuts on the main market;
• Almosafer is preparing for a public listing on Tadawul by late 2025 or early 2026;
• PIF-backed CloudKitchens is reportedly eyeing an IPO in the Kingdom or the UAE (or both);
• Meal subscription startup Calo is also said to be eyeing an IPO here at home by 2027.