Saudi Contractor MGC Targets Up to $800M in Landmark IPO

RIYADH, SAUDI ARABIA - Saudi Arabia’s Mutlaq Al-Ghowairi Contracting Co. (MGC) has announced the price range for its planned initial public offering (IPO), targeting proceeds of up to $800 million (SAR3 billion) in what is expected to be one of the region’s most significant listings of 2026.

The offering marks a notable development for Gulf capital markets, with MGC becoming the first major GCC company to launch a sizeable public offering since geopolitical tensions escalated earlier this year.

Under the proposed transaction, existing shareholders will offer 240 million shares, representing 30% of the company’s issued share capital, at a price range of SAR11 to SAR12.5 per share.

At the top end of the pricing range, MGC would achieve an implied market valuation of approximately $2.67 billion (SAR10 billion).

Bookbuilding Process Underway

The institutional bookbuilding period opened on Sunday and is scheduled to close on June 4, when the final offer price will be determined based on investor demand.

The transaction is being led by Al Rajhi Capital and Morgan Stanley, which are serving as financial advisers for the offering.

The IPO comes amid continued investor interest in Saudi Arabia’s infrastructure, construction, and development sectors, which remain central to the Kingdom’s Vision 2030 economic transformation agenda.

MGC operates as an engineering, procurement and construction (EPC) contractor and operations and maintenance (O&M) service provider, with a focus on large-scale infrastructure projects.

The company’s portfolio spans key sectors including water infrastructure, transportation networks, and urban development projects, supporting both public and private sector initiatives across Saudi Arabia.

As the Kingdom continues to accelerate investments in infrastructure, logistics, housing, and industrial development, contractors with established delivery capabilities are expected to play a critical role in executing major national projects.

Strong Financial Performance

MGC reported a net profit of $53.9 million (SAR202 million) during the first quarter of 2026, achieving a net profit margin of 21%.

The financial performance reflects continued activity across the company's project portfolio and highlights the strength of demand within Saudi Arabia’s infrastructure and construction sectors.

The planned listing is expected to provide investors with exposure to one of the Kingdom’s established infrastructure contractors while supporting the company’s long-term growth ambitions as Saudi Arabia continues to expand its development pipeline.