Red Sea to retain full 51% stake in First Fix during IPO

Logo of Red Sea International Co.

Red Sea International Co. (RSI) said it will not sell any portion of its 51% ownership stake in Fundamental Installation for Electric Work Co. Ltd. (First Fix), as part of the planned initial public offering (IPO).

In a statement to Tadawul today, Nov. 9, the company said it is not possible at this stage to confirm obtaining approval from the Capital Market Authority (CMA) or determine the timing of the IPO.

The company will announce any material developments in due course, the statement added.

First Fix recorded sales of SAR 2.6 billion in 2024, up from SAR 2.4 billion in 2023, while net profit increased to SAR 246 million from SAR 236 million a year earlier.

According to data available with Argaam, Red Sea shareholders approved a material transaction related to First Fix during the extraordinary general meeting (EGM). Other shareholders in the company have proposed offering 12 million shares (30% of capital) through an IPO on the Saudi market.

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

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, and plumbing (MEP).