AI Summary
UCIC production line
Retail investors will start today, May 12, subscription to 2.4 million shares of United Carton Industries Co. (UCIC) at SAR 50 each.
The shares offered to retail investors represent 20% of the total floated shares.
The retail offering will end on May 13.
The Capital Market Authority (CMA) approved the company's application to float 12 shares on the Main Market (TASI) last December, representing 30% of the company's capital.
The institutional offering ended last week, with a coverage ratio of 126x.
This is the fourth IPO on TASI this year after Derayah Financial on Feb. 20, Entaj on Feb. 26, and Masar on May 5.
Tadawul witnessed 14 IPOs last year, following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. on Nov. 19, Almoosa Health Co. on Dec. 23 and Nice One Co. on Dec. 24.
Company profile:
UCIC was established in 1988 as a Saudi closed-joint stock company in Jeddah.
The company operates with SAR 400 million capital, divided into 40 million shares at a par value of SAR 10 each.
Geographical Location of the Company:
Headquartered in Jeddah, the group operates from four locations in the Kingdom and two in the UAE.
The company owns 100% of its four subsidiaries. The most recent acquisition was Ras Al Khaimah Packaging Co. Ltd. (RAKPCO) in 2024.
By the end of 2023, revenues of these subsidiaries accounted for approximately 15% of the company’s overall topline, as shown in the table below:
|
Subsidiaries |
||||||
|
Subsidiary |
Subsidiary Ownership Percentage |
Production |
Revenue (SAR mln) |
Profit (SAR mln) |
||
|
2022 |
2023 |
2022 |
2023 |
|||
|
IPIC - KSA |
100% |
Folding cartons |
113 |
108.6 |
2.4 |
4.8 |
|
United Paper Industries Co. (UPIC) - UAE |
99.7% |
Corrugated cartons |
145.1 |
100.8 |
6.6 |
(1.5) |
|
RAKPCO - UAE |
100% |
Corrugated cartons |
- Acquired in July 2024, valued at SAR 13.7 million
- If the acquisition had occurred in January 2024, it would have contributed around SAR 16 million to group-wide revenue and a loss of SAR 3 million |
|||
|
Integrated Paper Industry Co. (IPC) - KSA |
100% |
Cardboard and corrugated paper products |
- Established in September 2024, with remaining assets purchased for SAR 10 million |
|||
The company offers four main product lines, primarily consisting of paper- and cardboard-based materials, each serving distinct end-use markets. These products are manufactured through UCIC and its wholly-owned subsidiaries, as detailed below:
|
Company Products |
|||||
|
Product |
Description |
End Uses |
Producing Entity |
Revenue Contribution |
|
|
Corrugated Cartons |
Rigid cardboard boxes |
Shipping, storage, general packaging |
UCIC, RAKPCO |
86% |
|
|
Folding Cartons (Duplex) |
Foldable cardboard boxes and cartons |
Food & beverage packaging – cheese, etc. |
IPIC |
7% |
|
|
Pulp Products |
Recycled paper materials |
Paper, tissue production – cup holders |
IPIC |
0.8% |
|
|
Containerboard Paper |
Testliner paper |
Outer layer for cardboard manufacturing |
UPIC |
8% |
|
|
Fluting paper |
Inner corrugated layer in cardboard |
||||
Corrugated cartons remain UCIC’s primary revenue and profit driver, accounting for 85% of total revenue by the end of 2024.
|
Product Revenue & Profit Performance (SAR mln) |
||||
|
Product |
Revenue |
Profit |
||
|
2023 |
2024 |
2023 |
2024 |
|
|
Corrugated Cardboard |
1,214.7 |
1,151.8 |
168.9 |
137.0 |
|
Folding Cartons & Pulp Products |
108.6 |
87.2 |
(0.5) |
5.5 |
|
Packaging Materials |
42.2 |
112.8 |
(1.5) |
(2.6) |
Corrugated cardboard production capacity is the highest among other products, reaching 381,000 tons by the end of December 2023. According to its strategic plans, the company expects this to increase to 416,000 tons annually by 2026.
Production Capacity as of Dec. 31, 2023
|
Products |
Production Capacity (‘000 tons) |
Average Usage |
Notes |
|
Corrugated Cartons |
381 |
80.1% |
Output capacity likely to rise to 416,000 tons by 2026 |
|
Folding Cartons |
20.2 |
77.7% |
The company expects to increase capacity or seek acquisitions |
|
Pulp Cartons |
2.2 |
69.7% |
-- |
|
Cardboard (Testliner & Fluting Paper) |
70 |
94.3% |
|
Company Profile |
|
|
Company |
United Carton Industries Co. (UCIC) |
|
Core Activities |
Carton products |
|
Capital |
SAR 400 mln |
|
Number of Shares |
40 mln |
|
Share Par Value |
SAR 10 |
|
IPO Summary |
|
|
Offering Percentage |
30% |
|
Offering Price |
SAR 50 |
|
Total No. of Shares Offered to Individual Investors |
2.4 mln shares (20% of the offering size) |
|
IPO Minimum Limit (Individual Subscribers) |
10 shares |
|
IPO Maximum Limit (Individual Subscribers) |
400,000 shares |
|
Offering period |
From May 12-13, 2025 |
|
Final allocation announcement |
May 18, 2025 |
|
Refund (if any) |
May 18, 2025 |
|
Company Shareholders |
||||
|
Shareholders |
Before IPO |
After IPO |
||
|
Number of Shares (mln) |
Ownership (%) |
Number of Shares (mln) |
Ownership (%) |
|
|
Zamil Group Holding* |
12.00 |
30.0 % |
8.40 |
21.0 % |
|
Omar Kassem Alesayi & Co. |
12.00 |
30.0 % |
8.40 |
21.0 % |
|
Frimex Investment |
12.00 |
30.0 % |
8.40 |
21.0 % |
|
Zamil Group Investment Co. |
2.00 |
5.0 % |
1.40 |
3.5 % |
|
Eastern Industrial Investment** |
2.00 |
5.0 % |
1.40 |
3.5 % |
|
Public |
-- |
-- |
12.00 |
30.0 % |
|
Total |
40.00 |
100 % |
40.00 |
100 % |
**Eastern Industrial Investment owns 1% of Zamil Group Holding
|
Additional Information |
|
|
Financial Advisor, Lead Manager, Bookrunner and Underwriter |
Al Rajhi Capital |
|
Receiving Banks |
Derayah Financial, Al Rajhi Capital, SNB Capital, BSF Capital, Alinma Investment, Riyad Capital, Albilad Capital, AlJazira Capital, ANB Capital, Alistithmar Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, and GIB Capital |
Be the first to comment
Comments Analysis: