Mutlaq Al-Ghowairi Contracting Co. (MGC), a Riyadh-based contractor focused on water and transportation infrastructure, is moving forward with plans to list on the Saudi stock market with an offering that could raise up to 3 billion riyals. The company said shareholders will offer 240 million shares, representing 30% of the firm, at a price band of 11 riyals to 12.5 riyals per share.
At the top of the stated range, the share sale would imply an enterprise value of about 10 billion riyals, equivalent to roughly $2.67 billion. If the deal reaches the maximum size, proceeds would total approximately $799 million.
The proposed IPO is notable in the regional calendar as it is positioned to be the first major public listing in the Gulf for 2026 and the first significant listing since the outbreak of the U.S.-Iran conflict. That geopolitical episode is cited as a factor that disrupted trade and energy flows across the region.
Saudi Arabia's equity market has, according to market commentary, outperformed several regional peers during the period of heightened tensions. Observers attribute that relative resilience to higher oil prices and the kingdom's diversified oil export infrastructure, which collectively have supported market performance.
The transaction comes at a moment when Saudi capital markets are showing signs of recovery after a slow start to the year. So far in 2026, only two firms have completed listings on the Saudi main market: information technology services company Dar Albalad for Business Solutions and mining firm Saleh Abdulaziz Al Rashed & Sons. Both of those newly listed companies have traded above their IPO prices since listing.
Those early-year listings contrast with the situation earlier in the year, when valuation concerns weighed heavily on Saudi listings and contributed to a broader slowdown in initial public offerings across the kingdom. Regional uncertainty has also affected neighboring markets; in the United Arab Emirates several planned listings have been delayed amid concerns about the impact of geopolitical tensions.
MGC was founded in 1977 and is headquartered in Riyadh. The company specializes in delivering water and transportation infrastructure projects within Saudi Arabia. According to its prospectus, MGC reported a profit of 420 million riyals for the six months ended 2025, with a net profit margin of 28.1% for that period.
The firm had been considering an IPO last year, and for the current transaction Al Rajhi Capital and Morgan Stanley are acting as financial advisers.
Contextual note - The offering highlights investor appetite returning to parts of the Gulf equity market, while also reflecting the sensitivity of IPO activity to valuation considerations and regional geopolitical developments.