Mutlaq Al-Ghowairi (MGC) aims to raise SAR 3bn in Riyadh IPO debut

Shareholders of Mutlaq Al‑Ghowairi Contracting Company (MGC) are seeking to raise up to SAR 3 billion (about $799 million) through an initial public offering in Riyadh, a move that could mark the Gulf region’s first major IPO of 2026.

The company published its offering prospectus on May 14, 2026, proposing a secondary sale of 240 million ordinary shares representing 30% of issued capital; the Capital Market Authority (CMA) had previously approved the company’s registration and offering. The transaction is structured primarily as a sale by existing shareholders.

MGC operates in engineering, procurement and construction (EPC) and in operations & maintenance (O&M); it reported contract revenues of about SAR 3.2 billion and a net profit of SAR 1.20 billion for 2024. Lead managers on the offering are Al Rajhi Capital and Morgan Stanley Saudi Arabia, and the prospectus indicates proceeds would support growth investments and working capital.

Market participants say the IPO could renew investor interest on the Saudi Exchange (Tadawul), given the company’s exposure to strategic water and infrastructure projects which benefit from long-term public spending plans. However, regional geopolitical tensions and global risk appetite are potential headwinds for valuation and subscription levels.

The next steps will focus on bookbuilding and gauging institutional demand; final pricing will depend on the indicated price range, order book composition and investor allocation. The offering will be watched as an early test of Saudi Arabia’s capital markets' ability to attract large listings in 2026.