Saudi Arabia’s Red Sea Global, which is wholly owned by sovereign wealth fund, Public Investment Fund, is considering a public market offering, perhaps as soon as 2026, Bloomberg reported on Monday citing the company's CEO.
“There will be some kind of public market event, whether it’s an initial public offering, whether it’s an establishment of a REIT, those are things that we’re currently studying,” John Pagano, chief executive of Red Sea Global, told Bloomberg in an interview.
The firm is in early talks with banks and stakeholders, Pagano said, without disclosing details on advisers, banks or valuation. An offering is likely by 2026 or 2027 once the hotels have been operational for about two years, with a track record of occupancy, cash flow and profitability. The main focus now is to establish a revenue stream that helps underpin value, he said.
PIF created Red Sea Global by combining two state-controlled developers in 2021, with the Red Sea Development Co. taking over Amaala. The first phase of the project is expected to complete by the end of 2024 and will include hotels and an international airport.
(Writing by Brinda Darasha; editing by Mily Chakrabarty)