Saudi IPO woes continue as contractor withdraws offering

Saudi contractor Mutlaq Al-Ghowairi Contracting Company (MGC) has withdrawn an initial public offering that could have raised $800 million.

The IPO, which stood to be the third on the main market this year, would have been easily the largest so far.

The number of new offerings has slumped following the outbreak of the Iran war.

In a statement released on Tuesday, MGC said that the withdrawal came after “careful consideration of the objectives and strategic priorities of the company and its selling shareholders” and that it would “continue to evaluate the most appropriate timing to proceed with the Offering”.

The company was approached for further comment.

It is the second time in six months that a company has pulled an IPO on the main market. Property manager EFSIM Facilities Management also withdrew its offering in December, saying it could return to the market “at an optimal time”.

Only two companies have listed on the Saudi Exchange this year, mining and construction company Saleh Abdulaziz Al Rashed & Sons and IT company Dar Albalad For Business Solutions.

Two more companies, developer AlDyar AlArabia Real Estate Development Company and bottled water company Berain, currently have CMA approval to list but have not yet released prospectuses.

The two completed IPOs have raised just $122 million between them. By comparison, the first half of 2025 saw six companies raise $2.8 billion.

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