First 2026 Saudi IPO: SAR Retail Starts Today – 67x Oversubscribed by Institution, 28% Riyadh Leader
SALEH ALRASHED 1324.SA | 64.85 | -1.82% |
Tadawul IPO Index TIPOC.SA | 4006.45 | -0.25% |
Tadawul All Shares Index TASI.SA | 11272.78 | +0.04% |
SAR IPO Overview
Saleh Abdulaziz Al Rashed & Sons Company (SAR), a leading Saudi provider of integrated construction materials, mining, and industrial spare-parts solutions, has finalized pricing for its initial public offering ahead of retail subscription, which starts today.
- Retail Subscription Starts: Thursday, February 12, 2026
- Retail Subscription Ends: Tuesday, February 17, 2026
- Final Offer Price: SAR 45 per share (top of the range)
- Total Shares Offered: 5,580,000 shares
- Offering Percentage: 30% of total issued share capital
- Implied Market Capitalization: SAR 837 million
- Total Offering Size: SAR 251 million
Institutional Demand
The institutional book-building process concluded successfully on February 9, 2026, with overwhelming investor interest. Total applications reached SAR 16,991 million, representing a coverage ratio of 67.7 times the offering size.
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
IPO Summary
| Category | Details |
|---|---|
| Company Name | Saleh Abdulaziz Al Rashed & Sons |
| Market | Main Market (TASI) |
| Core Activities | Building materials and spare parts |
| Company’s Capital | SAR 186 Million |
| Total Shares | 18.6 Million |
| Par Value | SAR 10 per share |
| Issue Percentage | The Offer Shares represent thirty per cent. (30%) of the Company’s share capital |
| Number of Offered Shares | 5.58 Million |
| Qualified Subscribers | Participating institutions & Retail investors |
| Total Number of Shares Offered to Retail Investors | 1.674 Million shares (30% of the offering size) |
| Minimum Number of Offer Shares to be Applied for by Individual Investors | 10 shares |
| Maximum Number of Offer Shares to be Applied for by Individual Investors | 250,000 shares |
| Minimum Number of Offer Shares to be Applied for by Institutional Investors | 100,000 shares |
| Maximum Number of Offer Shares to be Applied for by Institutional Investors | 929,999 shares |
About SAR:
With over five decades of proven industry experience, SAR has established itself as a key player in Saudi Arabia's mining and construction materials sector. The company operates through three main business lines:
Aggregates: SAR holds a 28% market share in Riyadh, supplying essential materials for road building, concrete manufacturing, and large-scale infrastructure projects.
Asphalt: The company delivers high-quality asphalt mixtures for road construction and major infrastructure works through advanced production capabilities.
Spare Parts: SAR specializes in trading high-performance spare parts for crushers and material handling systems, complementing its core materials business.
Competitive Advantages
End-to-End Vertical Integration: SAR operates across the entire value chain—from exploration and production to supply chain management and after-sales support. This integrated approach delivered a 30% reduction in transportation costs in 2024, while enhancing operational efficiency and product quality.
The company's infrastructure includes 17 strategically located sites, a fleet of 560+ trucks, and over 700 heavy equipment units, positioning it to maintain sector leadership.
Strong Financial Performance
SAR has demonstrated consistent growth with revenue expanding at an 18.3% CAGR from SAR 429.5 million in 2022 to SAR 599.6 million in 2024.
For the nine months ended September 30, 2025:
- Revenue: SAR 545.4 million
- Gross Profit: SAR 118.6 million
- Net Income: SAR 66.1 million (12.1% margin)
- EBITDA: SAR 115.6 million
The company's operational efficiency is reflected in strong returns, with ROAA of 16.3% and ROAE of 23.2% for the trailing twelve months as of September 2025. SAR maintains a solid liquidity position with SAR 18.6 million in cash and a prudent debt-to-equity ratio below 0.1x.
Company Revenue Since 2022 (SAR mln)
| Revenue Source | 2022 | 2023 | 2024 |
| Construction Materials | 332.52 | 383.60 | 491.62 |
| Spare Parts | 96.94 | 115.09 | 107.96 |
| Total | 429.46 | 498.69 | 599.58 |
Growth Drivers
Favorable Market Dynamics: SAR is well-positioned to benefit from Saudi Arabia's Vision 2030 infrastructure initiatives. The Kingdom's aggregate market grew at 17.1% CAGR from 2020 to 2024, reaching SAR 8.5 billion, and is projected to expand to SAR 14.0 billion by 2030. The asphalt market surged at 27.1% CAGR to SAR 14.5 billion in 2024, with further growth expected to SAR 19.9 billion by 2030.
The government has allocated SAR 40 billion to infrastructure and transport in 2024, with over 1,000 projects valued at SAR 608 billion underway.
Strategic Expansion: Between 2022 and Q1 2025, SAR significantly expanded its operational capacity:
- Asphalt mixing plants increased from 2 to 4
- Active quarries grew from 3 to 7
- Transportation fleet expanded by 278% (149 to 563 trucks)
- Crushers increased by 63% (8 to 13 units)
- Heavy equipment fleet grew by 92% (365 to 700 units)
The company's growth roadmap includes expanding market share through new quarries and asphalt plants, introducing high-quality silica sand and calcium carbonate production, and enhancing distribution and logistics capabilities.
Experienced Management: SAR's success is underpinned by experienced leadership with proven industry expertise and a skilled workforce. The company maintains strong governance policies and risk frameworks, while investing in technical training and Saudization programs aligned with Vision 2030 objectives.
Information above is sourced and summarised from the company's Prospectus.
Investor Groups
The IPO is divided into two tranches with specific allocation mechanisms:
Tranche A: Participating Parties (Institutional Investors)
This tranche is designated for parties entitled to participate in the book-building process, including:
- Investment funds
- GCC corporate investors
- Foreign corporate investors
Initial Allocation: 5,580,000 Offer Shares (100% of total offering)
Potential Adjustment: The Financial Advisor (ANB Capital Company) has the right, if there is sufficient demand from Individual Subscribers and in coordination with the Company, to reduce institutional allocation to 3,906,000 Offer Shares (70% of total offering).
Final allocation will be determined after the Individual Subscriber subscription period ends, using a discretionary allocation mechanism. Some participating entities may not receive any allocation.
Tranche B: Individual Subscribers (Retail Investors)
This tranche is open to:
- Saudi Arabian natural persons, including Saudi divorced women or widows with minor children from a marriage to a non-Saudi person (who can subscribe for their own benefit or in the names of their minor children, provided they prove their status)
- GCC natural persons
- Foreign natural persons (whether residing in the Kingdom or not)
Maximum Allocation: 1,674,000 Offer Shares (30% of total offering)
Important Subscription Rules
- Subscriptions made by a person in the name of their divorced wife will be deemed invalid, and the applicant will be subject to legal sanctions
- Duplicate subscriptions are prohibited—only the first subscription will be accepted; any second subscription will be considered void
- If Individual Subscribers do not fully subscribe to their allocated shares, the Financial Advisor may reduce the allocation proportionally in coordination with the Company
Shareholder Structure
The table below shows the ownership structure of SAR's substantial shareholders before and after the IPO:
| Shareholder | Pre-Offering | Post-Offering | ||||
|---|---|---|---|---|---|---|
| Number of Shares | Shareholding (%) | Overall Nominal Value (SAR) | Number of Shares | Shareholding (%) | Overall Nominal Value (SAR) | |
| Abdulaziz Saleh Abdulaziz Al Rashed | 6,664,380 | 35.8% | 66,643,800 | 4,665,066 | 25.1% | 46,650,660 |
| Abdullah Saleh Abdulaziz Al Rashed | 3,875,124 | 20.8% | 38,751,240 | 2,712,587 | 14.6% | 27,125,868 |
| Abdulaziz Saad Saleh Al Rashed | 1,395,000 | 7.5% | 13,950,000 | 976,500 | 5.3% | 9,765,000 |
| Saud Saad Saleh Al Rashed | 1,395,000 | 7.5% | 13,950,000 | 976,500 | 5.3% | 9,765,000 |
| Nourah Saleh Abdulaziz Al Rashed | 1,007,748 | 5.4% | 10,077,480 | 705,424 | 3.8% | 7,054,236 |
| Sara Saleh Abdulaziz Al Rashed | 1,007,748 | 5.4% | 10,077,480 | 705,424 | 3.8% | 7,054,236 |
| Shareholder Acting in Concert | 2,029,500 | 11.3% | 20,925,000 | 1,464,750 | 7.9% | 14,647,500 |
| Total | 17,437,500 | 93.7% | 174,375,000 | 12,206,251 | 65.8% | 122,062,500 |
Notes:
- Ownership percentages are rounded to the nearest decimal place
- Saud Saad Saleh Al Rashed is both a Substantial Shareholder and the minor son of Areej Saud Hamoud Al Dhaban (the Shareholder Acting in Concert). His shares are counted only once in the total to avoid double counting
- Shareholder Acting in Concert: Areej Saud Hamoud Al Dhaban holds 697,500 shares (3.8% pre-offering). As the legal guardian and mother of Saud Saad Saleh Al Rashed (7.5% pre-offering), Norah Saad Saleh Al Rashed (3.8% pre-offering), and Danah Saad Saleh Al Rashed (3.8% pre-offering), she disposes of their shares by agreement
Expected Offering Timetable
| Event | Date |
|---|---|
| Bidding and Book-Building Period for Participating Entities | A period of five business days commencing on Sunday, 13 Sha'ban 1447H (corresponding to 1 February 2026G), until the end of Thursday, 17 Sha'ban 1447H (corresponding to 5 February 2026G). |
| Deadline for Submission of Subscription Application Forms Based on the Number of the Offer Shares Provisionally Allocated for the Participating Entities | Wednesday, 23 Sha'ban 1447H (corresponding to 11 February 2026G). |
| Subscription Period for Individual Subscribers | A period of four business days commencing on Thursday, 24 Sha'ban 1447H (corresponding to 12 February 2026G) until the end of Tuesday, 29 Sha'ban 1447H (corresponding to 17 February 2026G). |
| Deadline for Payment of the Subscription Amount by Participating Entities Based on their Provisionally Allocated Offer Shares | Sunday, 27 Sha'ban 1447H (corresponding to 15 February 2026G) |
| Deadline for Submission of Subscription Application Forms and Payment of the Subscription Amount by Individual Subscribers | Tuesday, 29 Sha'ban 1447H (corresponding to 17 February 2026G). |
| Announcement of the Final Allocation of the Offer Shares | No later than Tuesday, 7 Ramadan 1447H (corresponding to 24 February 2026G). |
| Refund of Excess Subscription Monies (if any) | No later than Thursday, 9 Ramadan 1447H (corresponding to 26 February 2026G). |
| Expected Commencement Date for Trading the Shares on the Exchange | Trading of the Company's Shares on the Exchange is expected to commence after the completion of all of the relevant legal requirements and procedures. The trading commencement date of the Shares will be announced in local newspapers and Tadawul's website (www.saudiexchange.sa). |
Note: The above timetable and dates therein are indicative and subject to change. Actual dates will be communicated on the websites of Tadawul (www.saudiexchange.sa), the Financial Advisor (www.anbcapital.com.sa) and the Company (www.salrashed.com.sa).
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO