Riyadh – Mubasher: Al Rajhi Capital and Morgan Stanley Saudi Arabia have announced the commencement of the institutional book-building period for the initial public offering (IPO) of Mutlaq Al Ghowairi Contracting Company (MGC) on the Saudi Exchange’s (Tadawul) Main Market.
The price range for the offering, which represents a 30% stake in the company, has been established between SAR 11 and SAR 12.50 per share, according to an official statement.
Mutlaq Al Ghowairi MGC is floating 240 million ordinary shares. This transaction is structured as a secondary offering, with the shares being sold by existing shareholders.
Consequently, the company will not receive any proceeds from the offering; instead, all net proceeds will be distributed to the selling shareholders on a pro-rata basis according to their current holdings.
The institutional book-building process, designed to determine the final offer price, began on 31 May 2026, and is scheduled to run until 24 June 2026 at 3:00 PM KSA time. Participation during this phase is limited to qualified institutional investors in accordance with the Book Building Instructions issued by the Capital Market Authority (CMA). During this window, participating parties may bid for a minimum of 25,000 shares, while the maximum limit for any single institutional bidder is set at approximately 39.99 million shares.
Following the conclusion of the book-building phase, the final offer price is expected to be announced on 8 June 2026.
This will be followed by the retail subscription period for individual investors, which is slated to take place from 15 to 17 June 2026.
While the entire 240 million shares are initially earmarked for institutional investors, a clawback mechanism may be triggered if there is sufficient demand from the retail sector. In such an event, the financial advisors, in coordination with the company, may reduce the institutional allocation to a minimum of 168 million shares, representing 70% of the total offering, thereby allocating up to 72 million shares (30%) to individual subscribers.
The offering is managed by a syndicate of high-profile financial institutions, with Al Rajhi Capital serving as the Lead Manager, and is joined by Morgan Stanley Saudi Arabia as joint financial advisors, bookrunners, and underwriters.
Additional support is provided by ANB Capital and Emirates NBD Capital KSA as joint bookrunners and underwriters, while Albilad Capital and Arqaam Capital Financial JSC are acting as joint bookrunners.
Moelis and Company Saudi Limited has been appointed as the independent advisor to the company.
To ensure market stability following the listing, MGC and its major shareholders have agreed to a statutory lock-up period. Major shareholders and those acting in concert with them are prohibited from disposing of their shares for six months from the date trading commences on the Saudi Exchange.
Similarly, the company has committed not to issue or list additional shares of the same class for a six-month period following the debut.
The final allocation of shares is scheduled for announcement on 21 June 2026, with the refund of any excess subscription monies expected by 23 June 2026.
Therefore, trading on Tadawul’s Main Market will begin once all regulatory requirements and listing procedures are finalized. This IPO is expected to enhance Mutlaq Al Ghowairi MGC's corporate profile and provide broader access to capital markets while increasing liquidity for investors on the Tadawul.
