Mutlaq Al Ghowairi seeks SAR 3 bn from Tadawul listing

Mutlaq Al Ghowairi kicked off its institutional bookbuilding yesterday, with orders accepted through 4 June. The contractor set the price range at SAR 11-12.5 per share, seeking to raise up to SAR 3 bn (USD 800 mn) at the top of the range. That would imply a valuation of SAR 10 bn for the construction company.

REMEMBER- The secondary sale will be split into two tranches targeting institutional and retail investors. Institutional investors will initially get first dibs on all 240 mn shares. However, financial advisors can scale that back to 168 mn shares (70% of the offering) if retail demand warrants it. Institutional investors can subscribe for anything between 25k-40 mn shares.

Why it matters: This is the Gulf’s first big IPO this year, coming after the Iran War erupted in late February. Higher oil prices led Tadawul to outperform most regional peers since March, and the two newly-listed companies this year — Saleh Abdulaziz Al Rashed and Dar Al Balad — are trading above their debut prices.

The broader picture: The primary market is showing fresh signs of life. Shares in IT services firm Dar Albalad for Business Solutions surged 28.21% on their first trading day on Tadawul last month, after floating 21 mn shares and raising SAR 205 mn. Delivery app Ninja is preparing for a potential IPO that could raise USD 1 bn by late 2026 or early 2027 and Arabian Dyar is eyeing a listing before CMA approvals expire in June.

The updated timeline:

• Institutional book-building: 31 May-4 June;
• Final offer price announcement: 8 June;
• Retail subscription: 15-17 June;
• Final allocation: 21 June;
• Refunds (if any): by 23 June;
• Listing on Tadawul: shortly after, pending the usual regulatory box-ticking.

ADVISORS- Al Rajhi Capital and Morgan Stanley Saudi Arabia are acting as joint financial advisors, global coordinators, bookrunners, and underwriters. ANB Capital and Emirates NBD are also serving as joint bookrunners and underwriters, while Albilad Capital and Arqaam Capital are additional joint bookrunners. Al Rajhi Capital is acting as lead manager.

ALSO- Gulf Insulation Group files for a listing: Senaat subsidiary Gulf Insulation Group submitted an application to the Capital Market Authority to list its shares on Tadawul and offer a stake to the public, according to a disclosure out yesterday.