IPO Monitor | Today is The Day! UCIC IPO (SAR 50/Share) Now Open to You – Institutions See 126x Oversubscribed
Tadawul IPO Index TIPOC.SA | 4044.46 | -0.94% |
Tadawul All Shares Index TASI.SA | 11343.17 | +0.04% |
Riyadh, Saudi Arabia – May 12, 2025 – Attention investors: The retail subscription period for the Initial Public Offering (IPO) of United Carton Industries Company (UCIC) commences today, May 12, 2025.
This follows the successful completion of the institutional book-building process, which saw overwhelming demand and resulted in the setting of the Final Offer Price.
Key IPO Information:
- Retail Subscription Starts: Today, May 12, 2025; and closing at the end of Tuesday, May 13, 2025
- Final Offer Price: SAR 50 per share (Set at the upper limit of the initial range)
- Total Shares Offered: 12 million ordinary shares (representing 30% of the company's issued share capital)
- Implied Market Capitalization: SAR 2.0 billion (approximately USD 533 million) upon listing
- Institutional Book-Building: Heavily oversubscribed, with orders totaling approximately SAR 75.8 billion (USD 20.2 billion), indicating coverage of over 126 times.
Company Snapshot & Investment Highlights:
United Carton Industries Company (UCIC), established in 1988, stands as the largest corrugated carton manufacturer in the Middle East and North Africa (MENA) region and holds a dominant market leadership position within Saudi Arabia (37%-40% market share in corrugated cartons).
- Integrated Operations: Through its subsidiaries (IPIC, UPIC, RAKPCO, IPC), UCIC operates 8 manufacturing plants across Saudi Arabia and the UAE. Its business spans corrugated cartons, folding cartons, recycled containerboard paper, and moulded pulp products, showcasing significant vertical and horizontal integration.
| Company Products | ||||
| Product | Description | End Uses | Producing Entity | Revenue Contribution |
| Corrugated Cartons | Rigid cardboard boxes | Shipping, storage, general packaging | UCIC, RAKPCO | 86% |
| Folding Cartons (Duplex) | Foldable cardboard boxes and cartons | Food & beverage packaging – cheese, etc. | IPIC | 7% |
| Pulp Products | Recycled paper materials | Paper, tissue production – cup holders | IPIC | 0.8% |
| Containerboard Paper | Testliner paper | Outer layer for cardboard manufacturing | UPIC | 8% |
| Fluting paper | Inner corrugated layer in cardboard | |||
- Market Leadership: 37-40% KSA market share in corrugated cartons.
- Diverse Portfolio & Blue-Chip Clients: The company serves as a one-stop shop for paper-based packaging needs across various sectors (FMCG, F&B, Agriculture, Industrial). It boasts long-standing relationships (15-20+ years) with major local and multinational clients like Almarai, Nestlé, and PepsiCo, underpinned by high satisfaction (95% in 2023) and retention rates (98% for top 50 clients mid-2024).
- Strong Financial Profile: UCIC demonstrated robust financial performance in FY 2024, generating SAR 1.34 billion in revenue with healthy profitability margins (17.9% Gross, 16.3% EBITDA, 9.3% Net) and strong returns (22.9% ROE, 12.5% ROA). The company maintains a low leverage profile (9.8% bank debt-to-equity as of Dec 2024).
| Product Revenue & Profit Performance (SAR Million) | ||||
| Product | Revenue | Profit | ||
2023 | 2024 | 2023 | 2024 | |
| Corrugated Cardboard | 1,214.7 | 1,151.8 | 168.9 | 137.0 |
| Folding Cartons & Pulp Products | 108.6 | 87.2 | -0.5 | 5.5 |
| Packaging Materials | 42.2 | 112.8 | -1.5 | -2.6 |
- Growth & Efficiency: UCIC is well-positioned to capitalize on favorable market trends, including the growth of e-commerce, the increasing demand for sustainable packaging, and Saudi Arabia's Vision 2030 initiatives promoting manufacturing and diversification. The company utilizes advanced technology, automation, and efficient production processes benchmarked against global standards.
- Commitment to Sustainability: Sustainability is central to UCIC's strategy. In 2023, 85% of raw materials for corrugated cartons were recycled, and over 98% of manufacturing waste was recycled. The company holds key certifications (ISO, BRC, FSC) and invests in initiatives like solar energy.
- Experienced Leadership: A seasoned leadership team and Board of Directors guide the company's strategy, driving growth and innovation.
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IPO Summary
| Category | Details |
|---|---|
| Company Name | United Carton Industries Co. (UCIC) |
| Market | Main Market (TASI) |
| Core Activities | Carton products |
| Capital | SAR 400 million |
| Total Shares | 40 million |
| Par Value | SAR 10 per share |
| Issue Percentage | 30% |
| Number of Offered Shares | 12 million |
| Qualified Subscribers | Participating institutions & Retail investors |
| Total Number of Shares Offered to Retail Investors | 2.4 million shares (20% 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 | 400,000 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 | 1.99 million shares |
Investor Groups
Tranche (A): Participating Parties: This group includes entities involved in the book-building process, such as investment funds, companies, Qualified Foreign Investors (QFIs), GCC Corporate Investors, and certain other foreign investors through swap agreements.
- They will initially be allocated 12,000,000 Offer Shares (100% of the total).
- The final allocation may be reduced to 9,600,000 shares (80% of the total) if there is sufficient demand from Individual Subscribers.
- The final allocation will occur after the Individual Subscribers' subscription period ends, using a discretionary allocation mechanism, meaning some Participating Entities might not receive any shares.
Tranche (B): Individual Investors: This group includes:
- Saudi Arabian natural persons.
- Saudi female divorcees or widows with minor children from a non-Saudi marriage (subscribing for themselves or their children, with proof of status).
- Non-Saudi natural persons residing in the Kingdom or GCC natural persons, all requiring an investment account and active portfolio with a Receiving Agent.
- A maximum of 2,400,000 Offer Shares (20% of the total) will be allocated to Individual Subscribers.
- If Individual Subscribers do not fully subscribe to their allocated shares, the Financial Advisor, in coordination with the Company, may proportionally reduce their allocation based on the subscribed amount.
- Subscriptions made in the name of a divorced wife are invalid and will result in legal sanctions. Duplicate subscriptions will render the second subscription void, with only the first accepted.
Substantial Shareholders of the Company Pre- and Post Offering
| Shareholder | Pre-Offering | Post-Offering | Direct Ownership | Indirect Ownership | ||||
|---|---|---|---|---|---|---|---|---|
| Number of Shares | Ownership (%) | Number of Shares | Ownership (%) | Number of Shares | Ownership (%) | Number of Shares | Ownership (%) | |
| Zamil Group Holding Company (1) | 12,000,000 | 30.0% | 2,000,000 | 5.0% | 8,400,000 | 21.0% | 1,400,000 | 3.5% |
| Omar Kassem Alesayi and Company | 12,000,000 | 30.0% | - | - | 8,400,000 | 21.0% | - | - |
| Frimex Investment LLC | 12,000,000 | 30.0% | - | - | 8,400,000 | 21.0% | - | - |
| Zamil Group Investment Company | 2,000,000 | 5.0% | - | - | 1,400,000 | 3.5% | - | - |
| Eastern Industrial Investment Company (2) | 2,000,000 | 5.0% | 120,000 | 0.3% | 1,400,000 | 3.5% | 84,000 | 0.21% |
| Total | 40,000,000 | 100% | 2,120,000 | 5.3% | 28,000,000 | 70.0% | 1,484,000 | 3.71% |
Source: The Company.
(1) Zamil Group Holding Company owns 100 percent. of the capital of Zamil Group Investment Company.
(2) Eastern Industrial Investment Company owns 1 percent. of the capital of Zamil Group Holding Company.
Expected Offering Timetable
| Expected Offering Timetable | Date |
|---|---|
| Offering Period for Participating Parties and Book Building Period | A period of seven [7] days, starting from Tuesday 24/10/1446H (corresponding to 22/04/2025G) and closing at the end of Monday 30/10/1446H (corresponding to 28/04/2025G). |
| Deadline for submission of Subscription Forms by Participating Parties based on the initial allocation of Offer Shares | On Wednesday 09/11/1446H (corresponding to 07/05/2025G). |
| Submission Period for Individual Investors | A period of two [2] days, starting from Monday 14/11/1446H (corresponding to 12/05/2025G) and closing at the end of Tuesday 15/11/1446H (corresponding to 13/05/2025G). |
| Deadline for payment of subscription money by Participating Parties based on their initially allocated Offer Shares | On Sunday, 13/11/1446H (corresponding to 11/05/2025G). |
| Deadline for submission of Retail Subscription Forms and payment of the subscription monies by Individual Investors | On Tuesday, 15/11/1446H (corresponding to 13/05/2025G). |
| Announcement of final Offer Shares allotment | On Sunday, 20/11/1446H (corresponding to 18/05/2025G). |
| Refund of excess subscription monies (if any) | On Sunday, 20/11/1446H (corresponding to 18/05/2025G). |
| Expected trading commencement date for the Shares | Trading of the Offer Shares on the Exchange is expected to commence after all relevant legal requirements and procedures have been fulfilled. Trading will be announced in local newspapers and on the Saudi Exchange website (www.saudiexchange.sa). |
Read the full Prospectus, click here.
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
Further updates regarding this IPO will be provided as more information becomes available.
- Reporting by Zaid, Sahm News team