First #Saudi IPO Since Tariff Turmoil Draws $20 Billion in Orders - Bloomberg

First Saudi IPO Since Tariff Turmoil Draws $20 Billion in Orders - Bloomberg

Saudi packaging manufacturer United Carton Industries Co. drew more than $20 billion in orders for its initial public offering, a sign that investor appetite for Middle Eastern listings continues despite tariff-induced market turmoil.

The firm is set to raise 600 million riyals ($160 million) via the first-time share sale, according to a statement.

The final price of the offering was set at 50 riyals per share, the top end of a marketed range, which implies a market capitalization of around 2 billion riyals. The company had demand for all shares within the first hours of opening subscriptions, Bloomberg reported last month.

The Middle East has been an IPO hotspot in recent years, even as global volumes faltered. Bankers focused on the region have said they’ve not seen a significant dent to their deal pipelines because of US tariffs, but have warned that lower oil prices pose a risk to growth.

United Carton is one of several regional firms pushing ahead with plans to list despite the turmoil. Saudi hospital operator Specialized Medical Co. also kicked off a Riyadh listing on Sunday, while low-cost carrier Flynas and tech firm Ejada Systems Ltd. are also planning to launch deals soon, Bloomberg News has reported.

In Dubai, an investment conglomerate controlled by the emirate’s ruler unveiled plans on Monday to list a residential property portfolio, to harness the city’s property boom.

United Carton’s 2024 revenues amounted to 1.3 billion riyals, with the firm holding as much as 40% of the Saudi corrugated carton product market, according to its IPO prospectus.

Al Rajhi Capital is financial adviser and lead manager on the deal.