Red Sea International Company is planning to list its mechanical, electrical and plumbing subsidiary on the Saudi market.
The company’s board has endorsed the initial public offering proposal of Fundamental Installation for Electric Work Company, which will now need the approval of its shareholders.
In a disclosure issued to the Saudi stock exchange on Wednesday, Red Sea International clarified that it will retain its full ownership and will not divest any shares as part of the IPO process.
In October 2023, the company acquired a 51 percent stake in Fundamental Installation for SAR544 million ($145 million).
The purchase aimed at boosting its capabilities in the modular construction sector across the GCC region.
The statement did not specify the stake size to be offered and names of the selling shareholders.
The listing is still subject to regulatory approvals from the Capital Market Authority and the Saudi Exchange.
AGBI reported that Specialized Medical Company will list on the Saudi Exchange on Wednesday, concluding a delayed IPO that raised SAR1.9 billion ($500 million).
In the wake of US tariff announcements in April and recent hostilities between Israel and Iran, four out of five IPOs completed this year were trading below their initial offer price as of Tuesday.
