Saudi Arabia's MMG plans public offering

Dubai: Mohammad Al Mojil Group (MMG), a Saudi Arabian industrial construction and construction services company, yesterday said the Saudi Capital Market Authority (CMA) has approved the company's application to hold an initial public offering (IPO).

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 adviser and lead manager for the IPO.

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.

MMG provides services to some of Saudi Arabia's largest companies, including Saudi Aramco, the world's leading producer of energy. To date, MMG has completed projects worth more than 37.5 billion riyals.

Fahad Al Raqtan, managing director of MMG, said: "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 two billion riyals, while our net profit has grown at an average annual rate of 95 per cent in the last three years."

Timothy Gray, chief executive of HSBC Saudi Arabia, confirmed that the preparation work for the IPO is proceeding. "The share price will be determined based on the institutional bookbuilding process and will be announced soon afterwards," he said.