Saudi Printing mulls plan to float stake in UAE’s ENPI

Saudi Printing and Packaging Co. (SPPC) is studying a plan to float part of its equity stake in its Sharjah-based wholly-owned subsidiary, Emirates National Factory for Plastic Industries (ENPI) through an initial public offering (IPO) or a private placement, the company revealed in an annual board report.

No details were disclosed about the percentage of the potential stake sale, but a decision will be taken this year in consultation with the financial advisor, Abu Dhabi Islamic Bank (ADIB), according to the report.

ENPI, which SPPC acquired in 2013, specializes in plastic products and has eight factories in Sharjah, Abu Dhabi and Riyadh.

SPPC is also planning to bolster its printing segment with SAR 11 million in capital assets to enhance its technical capabilities.

SPPC is among the largest printing and publishing companies in Saudi Arabia. It prints all the newspapers and magazines published by the Saudi Research and Marketing Group (SRMG), a major shareholder with a 42 percent stake in SPPC, according to Argaam data.

According to the report, the board of directors also approved setting up a 13,000 square meter packaging plant in Jeddah at a cost of SAR 65 million. The new facility is expected to start operating in January 2017 with an expected return of 25 percent per year.

SPPC reported a 52 percent drop year-on-year in net profit to SAR 21.65 million for FY15, according to the data compiled by Argaam.

Other planned investments include a new production line at the company’s UAE plant and the addition of manufacturing molds for the production of plastic bottles.