Latest news with #UnitedCartonIndustriesCompany
Zawya
05-05-2025
- Business
- Zawya
United Carton Industries to raise $160mln from Saudi listing
United Carton Industries Company (UCIC), a Saudi-based cardboard packaging producer, has set the final IPO price at SAR 50 per share, raising 600 million Saudi riyals ($159.98 million). The company will have a market capitalisation of SAR 2 billion ($533 million) at listing. The order book during the institutional book-building reached nearly SAR 75.8 billion ($20.2 billion), oversubscribed 126 times. The company received the Capital Market Authority's approval to sell 12 million shares, representing 30% of its share capital, in December 2024. The retail subscription period will last for two days, starting May 12. The final allocations are expected to be announced on May 18, with any refunds of excess subscription monies to be made on the same day. Trading on the Main Market (TASI) is expected to commence after regulatory approvals. Established in 1988, UCIC has four owned subsidiaries and operates eight manufacturing plants across Saudi Arabia and the UAE. The company generated SAR 1.34 billion in revenues in 2024 and a net profit of SAR 125 million. (Editing by Seban Scaria
Zawya
22-04-2025
- Business
- Zawya
Saudi carton firm UCIC sets price range for IPO on Tadawul
Saudi Arabia's United Carton Industries Company (UCIC) has set the price range of its Tadawul IPO between 47 and 50 Saudi riyals ($12.53 - $13.33) per share. The offering comprises 12 million shares, representing 30% of the company's total issued share capital. The book building has commenced on Tuesday, April 22, and will end on Monday, April 28. The final offer price will be announced on May 5. The retail offering will run for two days from May 12-13. The corrugated carton manufacturer has appointed Al Rajhi Capital as its financial advisor, lead manager, bookrunner, and underwriter for the offering. Established in 1988, UCIC has four owned subsidiaries, with eight manufacturing facilities across Saudi Arabia and the UAE. The company reported a revenue of SAR 1,344 million in FY 2024. CEO Mohnish Rikhy said the IPO will allow UCIC to scale operations and expand its product portfolio. (Writing by Bindu Rai, editing by Seban Scaria)
Zawya
16-04-2025
- Business
- Zawya
Mideast Stocks: Gulf bourses end mixed on trade war worries
Stock markets in the Gulf closed mixed on Wednesday after U.S. President Donald Trump ordered a probe into potential new tariffs on U.S. critical mineral imports and amid concerns about the economic impact of the U.S.-China trade war. Trump's probe was viewed as an attempt to push back on leading critical minerals producer China, and comes on top of reviews into pharmaceutical and chip imports. Saudi Arabia's benchmark index added 0.2%, helped by a 0.5% rise in Al Rajhi Bank and a 1.5% increase in top lender Saudi National Bank. Separately, United Carton Industries Company on Tuesday announced plans to float a 30% stake on the Saudi Exchange's main market, in what would be the first initial public offering since trade tensions sparked a selloff in the kingdom's equity markets. Dubai's main share index dropped 0.5%, weighed down by a 1.2% slide in blue-chip developer Emaar Properties and a 2% decline in top lender Emirates NBD. Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession. In Abu Dhabi, the index eased 0.3%. On the other hand, oil prices rose 1%, reversing early losses as the market took a bullish view on China's stance on potential trade talks with the United States, though gains were capped by continuing fears that the trade war will curb energy demand. The Qatari index fell 0.2%, with Qatar Islamic Bank retreating 1%. Outside the Gulf, Egypt's blue-chip index lost 0.5%, with EFG Holding falling 2%. Meanwhile, Egypt's central bank is expected to cut overnight interest rates by 200 basis points on Thursday, but analysts say uncertainty about the impact of U.S. tariffs on the global economy is likely to make it move cautiously despite plunging Egyptian inflation, a Reuters poll shows. SAUDI ARABIA rose 0.2% to 11,634 Abu Dhabi lost 0.3% to 9261 Dubai dropped 0.5% to 5,053 QATAR eased 0.2% to 10,198 EGYPT was down 0.5% to 31,031 BAHRAIN rose 0.4% to 1,9110 OMAN gained 0.6% to 4,304 KUWAIT added 0.1% to 8,366 (Reporting by Ateeq Shariff in Bengaluru Editing by Bernadette Baum)
Reuters
16-04-2025
- Business
- Reuters
Gulf bourses end mixed on trade war worries
April 16 (Reuters) - Stock markets in the Gulf closed mixed on Wednesday after U.S. President Donald Trump ordered a probe into potential new tariffs on U.S. critical mineral imports and amid concerns about the economic impact of the U.S.-China trade war. Trump's probe was viewed as an attempt to push back on leading critical minerals producer China, and comes on top of reviews into pharmaceutical and chip imports. Separately, United Carton Industries Company on Tuesday announced plans to float a 30% stake on the Saudi Exchange's main market, in what would be the first initial public offering since trade tensions sparked a selloff in the kingdom's equity markets. Dubai's main share index (.DFMGI), opens new tab dropped 0.5%, weighed down by a 1.2% slide in blue-chip developer Emaar Properties ( opens new tab and a 2% decline in top lender Emirates NBD ( opens new tab. Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession. In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.3%. On the other hand, oil prices rose 1%, reversing early losses as the market took a bullish view on China's stance on potential trade talks with the United States, though gains were capped by continuing fears that the trade war will curb energy demand. The Qatari index (.QSI), opens new tab fell 0.2%, with Qatar Islamic Bank ( opens new tab retreating 1%. Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.5%, with EFG Holding ( opens new tab falling 2%. Meanwhile, Egypt's central bank is expected to cut overnight interest rates by 200 basis points on Thursday, but analysts say uncertainty about the impact of U.S. tariffs on the global economy is likely to make it move cautiously despite plunging Egyptian inflation, a Reuters poll shows.
Argaam
16-04-2025
- Business
- Argaam
United Carton Industries holds 40% of local corrugated carton market: CEO
Mohnish Rikhy, CEO of United Carton Industries Company (UCIC), said the carton industry in Saudi Arabia is poised for significant growth in the coming years, expecting demand to see a compound annual growth rate (CAGR) of 4-5% from 2026 to 2030. In an interview with Argaam, Rikhy explained that UCIC holds a leading position in the market, as the largest player in the field of cardboard and paper packaging in the Middle East and North Africa (MENA) region. It holds a market share ranging between 37% and 40% of the corrugated carton market in the Kingdom, significantly ahead of competitors. The group also has notable market shares in the folding carton market in Saudi Arabia and containerboard in the UAE. He pointed out that sustainability is a key pillar of the company's operations, noting that 85% of recycled materials were used in its corrugated carton factories in 2023, with more than 98% of industrial waste being recycled. Rikhy also spoke about the future of the carton industry in the Kingdom and the challenges it faces, outlining the group's production capabilities and financial performance. Here are details of the interview: * First, tell us about the operations of UCIC and its segments. How many factories and production lines does the company have? - UCIC is the largest manufacturer of corrugated cardboard in the MENA region. It offers a comprehensive and diverse range of carton packaging solutions. The group focuses on four main business segments: corrugated carton products, folding carton, molded pulp products, and containerboard (paper). The group operates through eight advanced factories in Saudi Arabia and the UAE, which provide high production capacity and enable the group to have wide geographical coverage. * How do you see the future of the packaging industry in the Kingdom? What factors will contribute to carton demand growth? - The cardboard industry in the Kingdom is expected to grow significantly, with demand forecast to rise at a CAGR of 4-5% from 2026 to 2030. This growth is driven by several factors, including the strong activity in e-commerce, sustainability initiatives, economic diversification targets under Vision 2030 through support for the industrial sector, ongoing urban expansion, population growth, and increasing tourist influx. Carton is considered a preferred and an indispensable component in the packaging industry due to its durability, recyclability, and versatility. * How do the packaging solutions offered by the company support vital sectors such as foods, pharmaceuticals, and e-commerce? - The group meets the needs of several leading local brands and multinational companies across various sectors such as consumer goods, foods and beverages, pharmaceuticals, agriculture, and e-commerce. The packaging solutions provided by the group offer many distinct competitive advantages, including the highest durability and product protection, as well as enhancing the brand image among consumers. This contributes to improved logistics efficiency and customer attraction. Through advanced, high-quality printing capabilities, customized designs, and ongoing investment in automation and digital solutions, the group supports its clients in boosting the reach and distinction of their brands while complying with sector-specific regulatory and functional requirements. * What is your estimated market share in the local carton market? - The group has a dominant position as the largest carton and paper packaging company in the MENA. According to a market study conducted in 2023, the company's share of the corrugated carton market in Saudi Arabia ranged between 37% and 40% - by far the market leader exceeding the combined share of the next four largest players in the Kingdom. The company also holds a share of 8-10% in the Saudi folding carton market, and a substantial share of 15-20% in the containerboard market in the UAE, where its paper mill is located. The group has strengthened its position as a leading player in the paper and packaging sector, thanks to its continuous focus on customer retention and excellence through delivering maximum value, customized solutions, and premium services that meet diverse customer needs. *How does UCIC address the challenges related to fluctuations in raw material prices or global supply chains? - The group addresses these challenges through a robust risk management framework that enhances its competitiveness by ensuring operational stability and protecting its market position. This is achieved through focusing on factors such as geographic, supplier, and product diversification, as well as a continued emphasis on local content utilization. Through building strong relationships with various global suppliers and working to achieve reverse integration of its operations, the group ensures cost stability, availability of raw materials, and flexibility in supply chains. Additionally, distributing operations across multiple factories enhances the group's ability to respond quickly to various market trends. * With several companies focusing on eco-friendly solutions, how is UCIC keeping up with this trend? - Sustainability is a key pillar at UCIC. In 2023, 85% of the paper used in the group's corrugated cardboard factories was made from recycled materials, and more than 98% of its industrial waste was recycled. Furthermore, the paper used in the group's UAE mill is completely recycled. UCIC also adopted several renewable energy initiatives and holds ISO 14001 certification as well as certifications from the Forest Stewardship Council (FSC), reflecting its leadership in applying the highest environmental responsibility standards in the sector. * What is the production capacity of the company's eight factories? How much do they contribute to meeting local demand for corrugated cardboard products? - The total production capacity of the group's eight factories is 491,000 tons per year. These factories are strategically located in Saudi Arabia and the UAE, ensuring the group's ability to meet local and regional demand. This aims to enable the group to provide high-quality services, reduce delivery times, and ensure the highest levels of operational efficiency. * How do you assess the company's financial performance over the past period? What are your expectations for its financial results? - The group showed strong financial performance, with revenues growing to SAR 1.34 billion in 2024. An EBITDA margin of 16.3% underscores the group's robust financial position and operational efficiency. Thanks to its solid financial position, continuous commitment to innovation, and technology-driven operations, the group is well-positioned to continue this growth and maintain strong financial performance. * Are there any expansion projects or new investments that UCIC plans to implement in the near future? - The group seeks to expand its operations in the region, including its recent entry into the UAE and growth plans for various GCC countries. The company continues to invest in achieving reverse integration, launching new product lines such as folding cardboard and containerboard paper, as well as investing in cutting-edge technologies. These efforts aim to diversify revenue sources and enhance the company's integrated operational model, with a continued focus on the corrugated packaging sector. Additionally, the group's proven track record of successful strategic acquisitions serves as a clear indicator of confidence in its ability to achieve growth, whether through acquisitions or development of core businesses. As a result, this will support the group's ambitions to consolidate its leadership in the regional packaging sector.
