Saudi packaging manufacturer United Carton Industries Company (UCIC) attracted orders worth over $20 billion for its initial public offering (IPO), signaling that investor appetite for Middle Eastern listings continues despite market turbulence caused by new tariffs. The firm is set to raise 600 million riyals ($160 million) through its first-time share sale, according to an official statement. The final price of the offering was set at 50 riyals per share, at the top end of the marketed range, implying a market capitalization of around 2 billion riyals.
Middle East Remains an IPO Hotspot
The Middle East has been an IPO hotspot in recent years, even as global volumes faltered. Bankers focused on the region have said they’ve not seen a significant impact on their deal pipelines due to US tariffs, but have warned that lower oil prices pose a risk to growth.
United Carton is one of several regional firms pushing ahead with plans to list despite the turmoil. Saudi hospital operator Specialized Medical Co. also kicked off a Riyadh listing on Sunday, while low-cost carrier Flynas and tech firm Ejada Systems Ltd. are also planning to launch deals soon, as reported by Bloomberg News. In Dubai, an investment conglomerate controlled by the emirate’s ruler unveiled plans on Monday to list a residential property portfolio, to harness the city’s property boom.
UCIC Company Profile
Established in 1990, UCIC operates five advanced manufacturing plants across Saudi Arabia. The company produces a wide range of corrugated packaging products, including regular and pieced boxes, shelf-ready containers, graphic printed boxes, and digital printed cartons.
Key company information:
- Holds approximately 40% of the Saudi corrugated carton product market
- 2024 revenues amounted to 1.3 billion riyals
- Committed to achieving net-zero carbon emissions across all scopes by 2050, aligning with the Science Based Targets initiative (SBTi) framework
IPO Details
UCIC’s offering included 12 million shares, representing 30% of the company’s share capital. The company achieved full subscription demand within the first hours of opening subscriptions, as Bloomberg reported last month.
Offering specifics:
- Offering Size: 12 million shares (30% of share capital)
- Final Price: 50 riyals per share (top end of marketed range)
- Total Proceeds: 600 million riyals ($160 million)
- Market Capitalization: Approximately 2 billion riyals
- Subscription Demand: Over $20 billion in orders, full subscription achieved within hours
- Financial Advisor and Lead Manager: Al Rajhi Capital
The IPO was limited to qualified investors as defined by the Capital Market Authority (CMA) regulations. The CMA approved the offering on December 17, 2024, granting a six-month window to complete the listing.
Industry Context and Market Trends
UCIC’s IPO aligns with Saudi Arabia’s broader economic diversification efforts under Vision 2030, which aims to reduce dependence on oil revenues by fostering growth in other industries. The Saudi packaging industry is experiencing significant growth, projected to expand from 44.5 billion units in 2023 to 51.5 billion units by 2028.
In 2024, Saudi Arabia led the Gulf Cooperation Council (GCC) IPO market, raising $4.1 billion across 42 offerings. This trend is expected to continue, with EY projecting 27 potential listings in Saudi Arabia for 2025.
Strategic Outlook
UCIC’s successful IPO reflects strong investor confidence in Saudi Arabia’s industrial sector and the broader MENA region’s capital markets. The company’s dominant market position, robust financial performance, and commitment to sustainability position it well for future growth.
As Saudi Arabia continues to implement economic reforms and diversify its economy, companies like UCIC are poised to benefit from increased investment and expansion opportunities.
