United Carton Industries Company (UCIC) on Tuesday announced plans to float a 30% stake on the Saudi Exchange's main market, in what would be the first initial public offering since trade tensions sparked a sell-off in the kingdom's equity markets.
The global IPO market has come under pressure in 2025, with rising geopolitical tensions, protectionist trade policies, and stock market volatility prompting many companies to delay listings or scale back fundraising plans.
The offering will consist of 12 million existing shares to be sold by current shareholders, with no new capital raised. Saudi Arabia's Capital Market Authority approved the IPO in December, and bookbuilding for institutional investors is scheduled to run from April 22 to April 28.
UCIC generated 1.34 billion Saudi riyals ($357.11 million) in revenue in full-year 2024. Its gross profit margin was 17.9% over the same period, while net profit came in at 125 million Saudi riyals.
"This IPO represents a transformative moment for the company, empowering us to scale operations, expand our product portfolio, and further our mission to be the preferred partner for packaging solutions in the region," CEO Mohnish Rikhy said in a statement.
Founded in 1988, UCIC is the largest corrugated carton manufacturer in the Middle East and holds a 37%-40% share of the Saudi market, according to the firm.
The company operates eight manufacturing plants across the kingdom and the UAE, producing a range of paper-based packaging products including corrugated cartons, folding cartons, recycled containerboard paper and moulded pulp.
Its customers include major corporates such as Starbucks, Pepsi and Pizza Hut, the company's website showed.
Al Rajhi Capital is acting as the financial advisor, lead manager, bookrunner and underwriter on the IPO.
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