IPO Monitor | The 48-Year Firm Behind Saudi Arabia's Roads, Water Systems & Urban Projects Files for Tadawul Listing
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MGC IPO Overview
Mutlaq Al-Ghowairi Contracting Company — known as MGC — has officially announced its intention to go public on the Main Market of the Saudi Exchange (Tadawul). The Capital Market Authority (CMA) approved the offering on 31 December 2025.
MGC is one of Saudi Arabia's leading contractors in infrastructure engineering, procurement, and construction (EPC), and also provides operations and maintenance (O&M) services. Its work focuses on large-scale, complex infrastructure in three sectors: water, transport, and urban development.
Key IPO Information
| Total Shares Offered | 240,000,000 shares (30% of total share capital) |
| Final Offer Price | To be determined at the end of the book-building period |
| New Shares Issued? | No — all shares sold are existing shares from current shareholders |
| Company Receives Proceeds? | No — all net proceeds go to the Selling Shareholders |
| Retail Subscription Dates | 15-17 June 2026 |
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IPO Summary
| Category | Details |
|---|---|
| Company Name | Mutlaq Al-Ghowairi Contracting Co. |
| Market | Main Market (TASI) |
| Core Activities | Construction, operation and maintenance works related to infrastructure projects in the water, transportation and urban development sectors. |
| Company’s Capital | SAR 800 Million |
| Total Shares | 800 Million |
| Par Value | SAR 1 per share |
| Issue Percentage | The Offer Shares represent 30% of the Company’s total Shares |
| Number of Offered Shares | 240 Million |
| Qualified Subscribers | Participating institutions & Retail investors |
| Total Number of Shares Offered to Retail Investors | 72 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 | 2.5 Million shares |
| Minimum Number of Offer Shares to be Applied for by Institutional Investors | 25,000 shares |
| Maximum Number of Offer Shares to be Applied for by Institutional Investors | 40 Million shares |
About MGC: Who Is This Company?
MGC has been building Saudi Arabia's essential infrastructure since 1977 — nearly five decades of continuous operation in the Kingdom. Its work sits at the heart of everyday life: water systems, roads and transport networks, and urban development projects.
The company operates across two service models:
- EPC (Engineering, Procurement & Construction): MGC designs, sources materials for, and builds infrastructure projects end-to-end.
- O&M (Operations & Maintenance): MGC also runs and maintains infrastructure after it's built — meaning it can stay involved throughout an asset's entire lifespan, not just during construction.
By the numbers (as of 31 December 2025):
| Years in operation | ~48 years (since 1977) |
| In-house engineers | 450+ |
| Total workforce | 4,700+ |
| Projects delivered (last 5 years) | 80+ |
Why Does This Matter to Investors?
Management points to Vision 2030 as the core demand driver — the Kingdom's ongoing push to expand public infrastructure and services is expected to generate a sustained, multi-year pipeline of funded projects, particularly in water and transport, where MGC already has an established track record.
The CEO noted that MGC is entering public markets "from a position of strength," citing a robust backlog of contracted work already scheduled for execution — which provides near-term revenue visibility rather than relying purely on future wins.
Looking ahead, MGC's stated strategy is to:
- Deepen its position in its existing core sectors (water, transport, urban development)
- Expand selectively into power and energy — but only in high-value areas where profitability is expected and risks appear manageable
The company also describes its financial model as asset-light and low-leverage — meaning it doesn't rely heavily on owning expensive equipment or carrying large debts to operate, which is generally considered a more resilient and flexible structure.
Information above is sourced and summarised from the company's Prospectus.
Who Can Subscribe
The IPO is open to two groups of investors:
Tranche A — Institutional Investors Large professional investors (funds, banks, financial institutions) who participate in the book-building process — a period where institutions bid for shares to help determine the final price.
- Initial allocation: up to 240 million shares (100% of offer shares)
- If retail demand is strong: allocation can be reduced to a minimum of 168 million shares (70%)
- Final allocation within this tranche is at the discretion of the financial advisors — some institutional investors may receive no shares at all
Tranche B — Individual (Retail) Investors Any individual person who holds an active investment account with a licensed broker in Saudi Arabia, or is eligible to open one.
- Maximum allocation: 72 million shares (30% of offer shares)
- If retail demand is weaker than expected: the retail allocation can be scaled down proportionally to match actual subscriptions
Important Rules for Retail Subscribers
Two specific warnings worth knowing before applying:
| Rule | What It Means |
|---|---|
| No subscribing in someone else's name | Applying under a divorcee's name is explicitly invalid and may trigger legal consequences for the applicant |
| No duplicate applications | If you submit two applications, only the first counts — the second is automatically void |
Shareholder Structure
Substantial Shareholders and Shareholders Acting in Concert and Their Direct Ownership Percentages in the Company Pre- and Post-Offering
| Shareholder | Pre-Offering (Directly) | Post-Offering (Directly) | ||||
|---|---|---|---|---|---|---|
| Number of Shares | Shareholding (%)¹ | Total Nominal Value (SAR) | Number of Shares | Shareholding (%)¹ | Total Nominal Value (SAR) | |
| Mutlaq Damouk Mutlaq Al-Ghowairi Al-Otaibi | 420,000,000 | 52.500% | 420,000,000 | 256,000,000 | 32.000% | 256,000,000 |
| Terad Damouk Mutlaq Al-Ghowairi | 180,000,000 | 22.500% | 180,000,000 | 125,760,000 | 15.720% | 125,760,000 |
| Moudi Ajmi Sanhat Al-Otaibi² | 15,000,000 | 1.875% | 15,000,000 | 15,000,000 | 1.875% | 15,000,000 |
| Abdulmajid Mohamed Damouk Al-Ghowairi² | 18,896,000 | 2.362% | 18,896,000 | 18,896,000 | 2.362% | 18,896,000 |
| Abdulmohsen Mohamed Damouk Al-Ghowairi² | 18,896,000 | 2.362% | 18,896,000 | 18,896,000 | 2.362% | 18,896,000 |
| Total | 652,792,000 | 81.599% | 652,792,000 | 434,552,000 | 54.319% | 434,552,000 |
Source: The Company.
(1) The ownership percentages are rounded.
(2) The guardianship of Moudi Ajmi Sanhat Al-Otaibi over her minor children has been considered as acting in concert.
Expected Offering Timetable
| Event | Date |
|---|---|
| Bidding and Book-Building Period for Participating Parties | A period of five (5) days, commencing on 14/12/1447H (corresponding to 31/05/2026G), until the end of Thursday 18/12/1447H (corresponding to 04/06/2026G). |
| Deadline for Submission of Subscription Application Forms Based on the Number of the Offer Shares Provisionally Allocated to Each of the Participating Parties | Wednesday 24/12/1447H (corresponding to 10/06/2026G). |
| Subscription Period for Individual Subscribers | A period of three (3) days, commencing on Monday 29/12/1447H (corresponding to 15/06/2026G) until the end of Wednesday 02/01/1448H (corresponding to 17/06/2026G). |
| Deadline for Payment of Subscription Amounts by Participating Parties Based on the Offer Shares Provisionally Allocated to Each of Them | Sunday 28/12/1447H (corresponding to 14/06/2026G). |
| Deadline for Submission of Subscription Application Forms and Payment of Subscription Amounts by Individual Subscribers | Wednesday 02/01/1448H (corresponding to 17/06/2026G). |
| Announcement of the Final Allocation of the Offer Shares | No later than 07/01/1448H (corresponding to 22/06/2026G). |
| Refund of Excess Subscription Monies (if any) | No later than 08/01/1448H (corresponding to 23/06/2026G). |
| Expected Commencement Date for Trading of the Shares on the Exchange | Trading of the Company's Shares on the Exchange is expected to commence after the fulfillment of all requirements and completion of all relevant legal procedures. The commencement date for trading of the Shares will be announced in Tadawul's website (www.saudiexchange.sa). |
Note: The above timetable and the dates therein are indicative and subject to change. Actual dates will be communicated through the websites of Tadawul (www.saudiexchange.sa), the Financial Advisors (www.alrajhi-capital.com and www.morganstanley.com) and the Company (www.mgc.com.sa).
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Further updates regarding this IPO will be provided as more information becomes available.