Mohammad Al-Mojil Group (MMG), Saudi Arabia’s premier industrial construction and construction services company, will launch its Initial Public Offering (IPO) in May.

The Saudi Capital Market Authority (CMA) has approved the company’s application to hold the IPO, MMG said.

The offering consists of 30 million shares, representing 30 per cent of the company’s share capital. The IPO will open for retail subscription on May 3 and close on May 12.

HSBC Saudi Arabia Limited has been appointed the financial advisor and lead manager for the IPO.

“The share price will be determined based on the institutional bookbuilding process and will be announced soon afterwards,” said Timothy Gray, chief executive officer of HSBC Saudi Arabia Limited.

He said the preparation work for the IPO is proceeding smoothly. 

According to the announcement, a portion of the offering will be offered to selected institutional investors.

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 Saudi Aramco, the world’s leading producer of energy, a statement said.

To date, MMG has completed projects worth more than SR37.5 billion.

“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 SR2 billion, while our net profit has grown at an average annual rate of 95 per cent in the last three years,” said Fahad Al-Raqtan, managing director of MMG.

He added: “These results were due to MMG’s continued efforts to develop its projects and strengthen its position as a contractor specialized in industrial construction in key sectors of the economy such as oil, gas, petrochemicals and water desalination.”

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 specialized construction companies capable of executing projects of building and maintaining onshore and offshore oil and gas and petrochemical facilities in the kingdom.” –TradeArabia News Service