Red Sea eyes IPO of subsidiary First Fix

Logo of Red Sea International Co. (RSI) 

Red Sea International Co. (RSI) announced today, June 25, it plans for an initial public offering (IPO) of its subsidiary Fundamental Installation for Electric Work Co. Ltd. (First Fix).

In a statement to Tadawul, RSI said the board, on June 23, agreed on a material deal, which remains subject to the shareholders’ approval.

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The company pointed out that although it will not sell any of its shares in First Fix in the IPO, the transaction is considered material due to the significance of the subsidiary to RSI’s operations and the expected impact of the offering on this key subsidiary.

The company confirmed that shareholder approval is a prerequisite for obtaining the Capital Market Authority’s (CMA) approval on the transaction.

On June 3, the board formed a specialized committee of three independent members, namely Mohammed Al-Munajjed, Lama Al-Sulaiman and Hans-Martin Stockmeier, to advise shareholders regarding the material transaction.

The company will publish an invitation to its shareholders to attend a general assembly to vote on the significant transaction upon obtaining regulatory approval, in addition to a shareholders’ circular with more details on the transaction.

The IPO will be subject to regulatory procedures and requirements, which include, but are not limited to, obtaining the approvals of Red Sea shareholders, the CMA and Tadawul.

Any material developments will be announced later in due course, the statement added.

In June 2023, RSI acquired a 51% stake in First Fix for SAR 544.2 million.

First Fix was established as a limited liability company in 2015 with more than 190 world class projects delivered through end-to-end solutions that offered integrated design, engineering and construction disciplines of mechanical, electrical & plumbing (MEP).

With a human capital of over 8,000 employees across the Saudi Arabia, First Fix has operated as a leading contractor across the GCC and has been a consistent performer financially and operationally.