Paper firm plans first Saudi IPO since global stock rout

30% of company for sale

$357m revenue in 2024

Saudi Arabia’s United Carton Industries Company (UCIC), the largest paper packaging company in the Middle East by sales, plans to sell shares to the public to fund expansion.

This is the first Saudi announcement of a planned IPO on the Saudi Exchange’s main market since a rout in global markets following Donald Trump’s near tripling in effective US import tariff rates on April 2. 

The Saudi stock market is down almost 4 percent so far this year.

UCIC plans to sell 12 million shares, equivalent to 30 percent of the company, it said in its prospectus. Its expansion plan includes widening its range of products.

CEO Mohnish Rikhy said in a statement that the IPO would allow it to scale operations and expand its product portfolio.

Al Rajhi Capital is the lead manager, bookwriter and underwriter for the IPO. 

The book-building process begins next week, with the retail subscription period to start on May 12. The final allocation of shares will be announced on May 18.

UCIC, which boasts over 1,100 clients, generated SAR 1.34 billion ($357 million) of revenue last year, and SAR 125 million of net income.

This will be the fourth IPO on the Saudi main market this year, after Derayah Financial, Entaj and Umm al Qura, which collectively raised $1 billion. Last year, 15 Saudi IPOs raised just over $4 billion.

Six other companies currently hold Capital Market Authority (CMA) approval to float on the main market.

Flynas, Specialised Medical Company, Sport Clubs Company, Dar Al Majed Real Estate Company and Marketing Home Group all received approval last month to list.

Ejada, a data and technology company, received approval in December to list a 45 percent stake.

CMA approval is valid for six months from issuance.

Register now: It’s easy and free

AGBI registered members can access even more of our unique analysis and perspective on business and economics in the Middle East.