Riyadh Cables Group to list 22% stake in big Saudi IPO

Riyadh Cables Group to list 22% stake in big Saudi IPO

Saudi Arabia - Riyadh Cables Group, a regional pioneer in the wire and cable industry, has announced its intention to proceed with an initial public offering (IPO) and list ordinary shares equivalent to a 22% stake on the Saudi stock exchange (Tadawul).

The largest cable manufacturer in the Middle East and North Africa, Riyadh Cables Group operates 15 manufacturing facilities spread over 1,500,000 sq m area.

Its production infrastructure is integrated across the value chain including six factories to manufacture raw materials used in the cables industry to support the nine cable factories in Saudi Arabia, UAE and Iraq.

This makes it self-reliant while also improving RCGC’s manufacturing efficiency by being able to control the cost and quality of its manufacturing ingredients.

Unveiling the IPO plans, Riyadh Cables Group said it had obtained the approval of the Capital Market Authority (CMA) this month on its application to offer 33 million ordinary shares, representing 22% of its share capital of SR1.5 billion ($399.15 million) for public subscription.

The company’s financial performance has been outstanding during the past years. Revenues have consistently exceded SR4 billion and it has always remained profitable throughout its almost 40 year history.

In addition to the growth of its revenue, Riyadh Cables demonstrated