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Logo of Red Sea International Co.
Red Sea International Company announced that it has received approval from the Capital Market Authority to increase its capital by converting approximately SAR 476 million in existing debts into company shares.
In a press statement, the company explained that most of these debts stem from financial obligations related to acquiring First Fix Company for Electrical Works. Red Sea International holds a controlling 51% stake. The subsidiary is preparing for an Initial Public Offering (IPO) on the Saudi Exchange (Tadawul – TASI).
The company further noted that the debt includes a loan from one of its major shareholders, Al-Dabbagh Group Holding Company, valued at SAR 81 million, which carries no interest or profit margin. This loan, the company said, reflects Al-Dabbagh Group’s supportive stance toward Red Sea International — a partnership that has spanned over three decades — and underscores the Group’s commitment to the company’s stability and sustainable growth.
Al-Dabbagh Group expressed its belief that the debt-to-equity conversion will further empower Red Sea International’s growth journey, enabling it to achieve new levels of expansion that will serve the long-term interests of all shareholders.
Red Sea International added that the Extraordinary General Assembly, held on August 31, 2025, had previously approved the material transaction related to First Fix Company’s IPO, marking one of the most significant milestones in the group’s strategic expansion plan. The company expects the IPO to deliver positive financial outcomes and strengthen its asset base and balance sheet.
First Fix Company for Electrical Works Ltd., established in 2015, is a closed joint-stock Saudi company and a leading national player in the mechanical, electrical, and plumbing (MEP) contracting sector. The company has completed over 190 projects worldwide, offering integrated solutions across design, engineering, and execution. It employs over 8,000 people across the Kingdom and has a strong operational track record in the Gulf Cooperation Council (GCC) region.
According to the latest financial statements, First Fix achieved sales of SAR 2.6 billion in 2024, compared to SAR 2.4 billion in 2023. Net profit reached SAR 246 million, up from SAR 236 million the previous year — reflecting steady and growing financial and operational performance.
Red Sea International emphasized that the debt-to-equity conversion represents a strategic move aimed at strengthening the company’s financial structure, optimizing capital efficiency, and supporting operational expansion in both local and regional markets. The initiative aligns with Saudi Arabia’s Vision 2030 and the company’s commitment to sustainable growth.
The company added that further details regarding the capital increase will be published in the shareholders’ circular accompanying the invitation to the Extraordinary General Assembly, including all relevant information for investors and stakeholders.
The statement concluded by reaffirming the company’s commitment to transparency and sound governance, saying:
“We value the trust of our esteemed shareholders and look forward to sharing more details soon, which aligns with our commitment to disclosure and clarity in all our dealings.”
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