CGS creeps up on main market debut: Saudi cold-chain manufacturer ConsolidatedGrünenfelder Saady Holding (CGS) inched up 0.8% on debut to close its first day of trading on Tadawul at SAR 10.08 per share, according to market data. The stock swung between a high of SAR 10.79 and a low of SAR 9.70, with around 19.2 mn shares changing hands across 16.7k trades worth SAR 192.5 mn.

IN CONTEXT- The gain, modest as it is, puts CGS alongside Almasar Education as one of the rare IPOs to post a positive first day performance in 3Q, defying a broader run of weaker debuts (think Cherry Trading and Marketing Home Group) amid liquidity strains. “Everyone will adjust to the idea that not all IPOs will perform 30-40% on day one,” Mostafa Gad, EFG Hermes’ head of investment banking, told Bloomberg. “We’re becoming a mature market,” he added.

REFRESHER- The cold-chain manufacturer, which holds around 41% of the Kingdom’s automotive refrigeration and vehicle-body solutions market, took a 30% stake to market in a fully secondary offering. Shares priced at SAR 10 apiece, valuing the company at around SAR 1 bn at listing and handing selling shareholders some SAR 300 mn in gross IPO proceeds.

ADVISORS- Aljazira Capital acting as financial advisor, lead manager, underwriter, and joint bookrunner alongside Arqaam Capital; Himmah Capital as advisor to the selling shareholders; Latham & Watkins as law-related counsel to the company; PwC as financial due diligence advisor; Ernst & Young as auditor; and Euromonitor International as market consultant.

ALSO- CGS secured two contracts worth SAR 195.5 mn from Aramco and Almarai, it said in two separate disclosures to the exchange yesterday. The company inked a SAR 166 mn contract with Aramco Nabors Drilling for a customized solutions project, while signing another contract worth SAR 29.5 mn with Almarai to provide a stationary refrigeration solution for one of its food processing facilities in the Kingdom.

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