Saudi Red Sea developer weighs public offering as soon as 2026

Saudi Red Sea developer weighs public offering as soon as 2026

The company behind a major tourism destination on Saudi Arabia’s Red Sea coast, a cornerstone of the kingdom’s push to attract tourists and diversify its economy, is considering a possible public market offering as soon as 2026. “There will be some kind of public market event, whether it’s an initial public offering, whether it’s an establishment of a REIT, those are things that we’re currently studying,” John Pagano, chief executive of , said in an interview in Dubai. The firm is in early talks with banks and stakeholders, Pagano said, without disclosing details on advisers, banks or valuation. An offering is likely by 2026 or 2027 once the hotels have been operational for about two years, with a track record of occupancy, cash flow and profitability. The main focus now is to establish a revenue stream that helps underpin value, he said. “If you look at real estate markets around the world, the idea of public real estate companies has disappeared to a large extent,” Pagano said. “Everybody’s converted into REITs, in large part because of tax efficiency, but also because it gives you access to a broader universe of investors.” The Red Sea project, first announced in 2017, covers