Mutlaq Al-Ghowairi Contracting has decided not to proceed with its planned IPO, halting the process after completing the institutional book-building phase despite strong investor demand that saw the offering multiple times oversubscribed.

The decision was announced on Tuesday by Al Rajhi Capital and Morgan Stanley Saudi Arabia, the financial advisers on the transaction.

The move followed a comprehensive review of its strategic objectives and those of its selling shareholders, conducted in consultation with the advisers. “While we remain confident in our growth strategy and expansion plans, we have opted to pause the IPO process for now,” the company said, adding that it will continue to assess various expansion opportunities and may revisit a public listing in the future.

The IPO had been expected to raise around SAR 3 billion ($800 million), potentially marking the region’s first major listing of 2026. Sources previously indicated that around 30% of the company’s shares would be sold, implying a valuation of up to SAR 10 billion at the top end of the price range.

Recent trading performance of newly listed companies paints a mixed picture. Dar Albalad, the latest entrant to the main market, is trading around 41% above its debut price. In contrast, mining firm Saleh Abdulaziz Al Rashed & Sons is trading roughly flat at its IPO price of SAR 45 per share.

(Writing by Ahmad Mousa; editing by Daniel Luiz)
Ahmad.mousa@lseg.com