Saudi contractor MGC seeks up to $799 million in Riyadh IPO

Saudi Arabia’s Mutlaq Al-Ghowairi Contracting Co. (MGC) is seeking to raise as much as 3 billion riyals ($799 million) through an initial public offering in Riyadh, according to a statement cited by Bloomberg on Sunday.

The company’s shareholders are offering 240 million shares, representing a 30% stake, at a price range of 11 riyals to 12.5 riyals per share.

At the top end of the range, MGC would be valued at about 10 billion riyals ($2.67 billion).

The offering is set to become the Gulf region’s first major IPO of 2026 and the first large listing since the outbreak of the U.S.-Iran conflict, which disrupted regional trade and energy markets.

Saudi Arabia’s stock market has outperformed several regional peers during the conflict, supported by higher oil prices and the kingdom’s diversified oil export infrastructure.

The IPO comes as Saudi Arabia’s capital markets show signs of recovery after a slow start to the year.

Only two companies have been listed on the Saudi main market so far in 2026. Information technology services firm Dar Albalad for Business Solutions and mining company Saleh Abdulaziz Al Rashed & Sons have both traded above their IPO prices since listing.

The latest offering contrasts with conditions earlier this year, when valuation concerns weighed on Saudi listings and slowed IPO activity across the kingdom.

Regional uncertainty has also affected neighboring markets. In the United Arab Emirates, several planned listings have faced delays amid concerns over the impact of geopolitical tensions.

Founded in 1977 and headquartered in Riyadh, MGC specializes in water and transportation infrastructure projects across Saudi Arabia.

According to its prospectus, the company generated a profit of 420 million riyals during the six months ended 2025, with a net profit margin of 28.1%.

Bloomberg previously reported that MGC was considering an IPO last year.

Al Rajhi Capital and Morgan Stanley are serving as financial advisers on the transaction.