Several firms eye IPOs in Saudi market: Report

Tadawul trading screen

Several companies are pursuing potential listings on the Saudi stock market, including Health Water Bottling Co. Ltd. (HWB), an subsidiary of Olayan Group, in addition to telecom services provider Etihad Salam Telecom Co, Bloomberg reported, citing sources.

According to the report, Olayan Financing Co. is working with Lazard Saudi Arabia Ltd on a initial public offering (IPO) for Water Bottling and recently sent requests for proposals to banks. Etihad Salam Telecom is also seeking firms for secondary banking roles in its planned listing.

Sources said ArcelorMittal Tubular Products Jubail Co. appointed JPMorgan Chase & Co. and HSBC Holdings plc as advisers, while Alkhorayef Petroleum Co. is preparing to seek regulatory approval after appointing banks earlier this year, with both firms backed by the Public Investment Fund as a shareholder.

The sources added that Ejada co. is seeking renewed regulatory approval for its planned listing, while delivery company Ninja has selected banks for a potential $1 billion IPO.

Bloomberg reported in February that several companies in sectors including oilfield services, manufacturing, telecommunications, and contracting are preparing for Saudi market listings, according to Argaam’s data.

The report added that the companies include Alkhorayef Petroleum, ArcelorMittal Tubular Products Jubail, backed by the PIF and steelmaker ArcelorMittal, and Etihad Salam Telecom, while Mutlaq Al-Ghowairi Contracting Co. (MGC) is considering a share sale.