In Saudi Arabia, water company Miahona is latest to go for an IPO

Dubai: Another Saudi company is going public - the water and water infrastructure company Miahona has just confirmed such a plan and list on the Tadawul. A book-building exercise will start April 28 and run until May 2, and the final offer price set at that time. 

On March 20, the Saudi Capital Market Authority had approved the company’s application to offer 48.27 million shares, which make up 30 per cent of the issued share capital. This will be done by the current shareholder, Vision Invest.

Vision Invest is a Saudi investment holding company with a focus on public and private sector partnerships.

"In the event that there is sufficient demand by individual investors, the number of shares initially allocated to participating parties will be reduced to 38.62 million shares, representing 80 per cent of the total offer," said a statement.

“Private sector participation in the water and wastewater sector is one of the main pillars of economic transformation in Saudi Arabia," said Awaadh Al Otaibi, CEO of Miahona. "Over the past few years, Miahona has succeeded in achieving remarkable growth, enhancing its ability to benefit from the tremendous growth and development process witnessed by the Kingdom.

"Based on our leading position in the sector, we are confident in our ability to contribute to the development of new projects in the water and wastewater sector as part of this transformation and continued growth.”

What's Miahona into?

The Saudi company operates two main business segments - concessions and operation & maintenance.

The first involves long-term contracts for the development and rehabilitation of water and wastewater treatment plants. Here, the company is responsible for designing, constructing and operating the plant. This category made up 92 per cent of its revenues in 2023.

The operation and maintenance involves short- to medium-term contracts for the operation and management of Miahona's own and third-party projects.