Saleh A. Al Rashed launches retail subscription for 1.67M shares at SAR 45

SAR’s retail offering will run for four days until Feb. 17

Retail investors start today, Feb. 12, subscribing to 1.67 million shares of Saleh Abdulaziz Al Rashed & Sons Co. (SAR) on the Main Market (TASI) at SAR 45 per share, based on the price determined through the book-building process.

The retail offering will run for four days until Feb. 17.

The retail tranche represents 30% of the total shares on offer.

In September, the Capital Market Authority (CMA) approved the company’s application to float 5.58 million shares on TASI, representing 30% of its SAR 186 million capital, divided into 18.6 million shares, at a par value of SAR 10 each.

The company’s institutional offering, which ended last week, was 67.7x covered.

 This is the first IPO on TASI this year.

TASI witnessed 13 IPOs last year, following listings by Derayah Financial Co. on Feb. 20, Arabian Company for Agricultural & Industrial Investments (Entaj) on Feb. 26, and Umm Al Qura for Development and Construction Co. (Masar) on May 5. This is in addition to United Carton Industries Co. (UCIC) on May 27, flynas Co. on June 18, Specialized Medical Co. (SMC) on June 25, Sport Clubs Co. on July 8, Dar Al Majed Real Estate Co. (Al Majdiah) on Aug. 14, Marketing Home Group for Trading Co. on August 19, Cherry Trading Co. on Nov. 12, Almasar Alshamil Education Co. on Nov. 18,  Consolidated Grünenfelder Saady Holding Co. (CGS)  on Nov. 26 and  Alramz Real Estate Co. on Dec. 7.

Key Company Information

Saleh Abdulaziz Al-Rashed & Sons Co. was established in 1975 as a sole proprietorship in Riyadh under the name Saleh Abdulaziz Al-Rashed Trading Establishment. In 2010, it converted into a limited liability company and changed its name the following year to its current name. In 2023, it transformed into a closed joint-stock company.

The company’s activities include quarry operations and the production of construction materials (aggregate and asphalt), the supply of crushers, spare parts and heavy machinery, as well as the provision of integrated infrastructure solutions.

SAR operates through two main segments: the sales of construction materials segment, which includes aggregate and asphalt, and the sales of spare parts segment, which includes crushers, heavy machinery, internal installation, assembly and technical support.

The company owns seven quarry sites comprising 13 crushers, in addition to four asphalt mixing plants, supported by a fleet of approximately 563 trucks and around 700 units of heavy machinery.

According to the prospectus, the firm employs 1,744 employees, including 204 Saudis and 1,540 non-Saudis.

Geographic Presence and Operations

The group operates across 17 locations within the Kingdom.

The following table outlines the group’s geographic footprint:

Company Market Share

The company holds a 6.2% market share in the Kingdom’s mining sector for aggregate (construction materials) based on its production volume, and 28% in the Riyadh market. It also contributes aggregate materials to projects valued at SAR 8 billion and has participated in executing projects with a total value exceeding SAR 18 billion.

SAR entered the asphalt production and supply segment in 2021 through the acquisition of an asphalt plant in Rumah. According to the prospectus, the group holds a 1% production market share of the total asphalt market in the Kingdom based on its 2024 output.

The group holds a 13.1% market share in crushers and spare parts in the Kingdom based on its 2024 revenues. During the past year, it also entered the silica production business as part of its five-year strategic expansion plan.

Aggregate Extraction Quarries

The group operates eight quarries, including six long-term and two short-term quarries, distributed across Riyadh, Madinah, Eastern Province, and Jeddah regions.

For short-term quarries, the group deploys mobile crushing units that can be easily relocated as needed.

As of March 31, 2025, the group’s mobile crushing units were operating at the following short-term quarry:

Dirab BSS Plant: The group operated one production crusher and one asphalt plant at the project site for aggregate extraction. The project was completed in June 2025.

Subsidiaries

The company has three wholly owned subsidiaries, in addition to an 80% stake in National Shield Mining Co.

* Owned by Noura Nasser Faisal Al Thebaity

Company Revenue

SAR recorded revenue growth of 20% in 2024 to SAR 599.6 million, compared to approximately SAR 498.7 million in 2023. The construction materials sector accounted for the vast majority of revenue at 82%, while the spare parts sector accounted for 18%, as detailed below:

The Central Region led in revenues with approximately SAR 346 million in 2024, representing about 58% of total revenues, followed by the Eastern Region with SAR 116.5 million, accounting for more than 19%. The Western Region reported revenues of SAR 112.8 million, while the Northern and Southern Regions recorded the lowest.