(KHAMEIS AL HEFAITY)
Mohammad Al Mojil Group (MMG), Saudi Arabia’s premier industrial construction and construction services company, said yesterday that it had appointed HSBC Saudi Arabia as lead manager on its initial public offering (IPO).
Timothy Gray, Chief Executive Officer of HSBC Saudi Arabia Limited, confirmed that the preparation work for MMG’s IPO is proceeding smoothly.
“The share price will be determined based on the institutional bookbuilding process and will be announced soon afterwards,” he said.
The Saudi Capital Market Authority (CMA) has already approved the company’s application in this regard. According to the announcement, a portion will be offered to selected institutional investors.
Osama As’ad, Director of Investment Banking at HSBC Saudi Arabia Limited, added, “This IPO represents significant quality in the initial public offerings in the Saudi stock market as MMG will be the first specialised industrial construction company to make an initial public offering in the Kingdom.
“MMG is a leader in a sector that has been witnessing escalating demand for specialised construction companies capable of executing projects of building and maintaining onshore and offshore oil and gas and petrochemical facilities in the Kingdom.”
Fahad Al Raqtan, Managing Director of MMG, said: “This IPO announcement is a significant step for the company and will allow the Saudi public to participate in the success of the company. Last year our revenues approached SAR2 billion (Dh1.96bn), while our net profit has grown at an average annual rate of 95 per cent in the last three years.”
He added, “These results were due to MMG’s continued efforts to develop its projects and strengthen its position as a contractor specialised in industrial construction in key sectors of the economy such as oil, gas, petrochemicals and water desalination.”
Established more than 50 years ago, MMG has grown to become one of Saudi Arabia’s largest industrial construction companies, with 24,000 employees working on significant projects across the Kingdom.
With a track record of delivering results on time, on budget and to the exact specifications of its clients, MMG is the construction and construction services provider of choice for many of the Kingdom’s largest companies, including, among others, Saudi Aramco, currently the world’s leading producer of energy solutions.
BCI To Float
Saudi Arabia-based Basic Chemical Industries (BCI), which says it is the largest private chemical firm in the Kingdom, will offer 30 per cent of its capital, or 6.6 million shares, from May 24 to June 2, it said on the bourse website.
Both will reserve some shares on offer for investment funds, the bourse statement said, giving no more details. (Reuters)
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