20-05-2025
United Carton tests strength of Saudi retail demand: IFR
Appetite for IPOs among Saudi retail investors proved as robust as ever with individual demand for United Carton Industries well in excess of the entire SR600m (US$160m) deal.
The deal was the first main market listing on Tadawul since the Eid al-Fitr holiday and the broader market volatility following US president Donald Trump's April 2 tariff announcements.
The retail offer of 20% of the IPO attracted SR1.07bn of demand from 396,601 subscribers covering the public tranche 8.9 times.
Institutional demand proved equally strong with SR75bn of demand covering the 80% going to institutions more than 150 times. The institutional bookbuild led to pricing at the top of a SR47–SR50 range valuing the company at SR2bn off a 30% free-float.
Al Rajhi Capital ran the deal.
More Tadawul retail offers are due this month for Specialized Medical Company and Flynas, which will open their books to the public on May 28.
Pricing is still to be announced for those deals, which completed institutional bookbuilding on May 15 and May 18, respectively.
