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IPO Monitor | UCIC IPO Alert: 30% Stake in MENA’s Top Carton Maker Now Open for Investor Review
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UCIC IPO Overview
United Carton Industries Company (UCIC), the largest corrugated carton manufacturer in the Middle East and North Africa (MENA) region, announced its intention to proceed with an Initial Public Offering (IPO) and the listing of its ordinary shares on the Main Market of the Saudi Exchange.
The Capital Market Authority (CMA) approved the Company’s application on 15/06/1446H (corresponding to 16/12/2024G) for the registration and offering of 12,000,000 ordinary shares, representing 30% of UCIC’s total issued share capital. The Offer Shares will be sold by existing shareholders, and the Company will not receive any proceeds from the Offering.
The final Offer Share price will be determined following the book-building period, scheduled to begin on 24/10/1446H (22/04/2025G) and conclude on 30/10/1446H (28/04/2025G).
Key Details:
- Offering Details: The IPO comprises 12,000,000 ordinary shares, equivalent to 30% of UCIC’s total issued share capital. These shares will be offered by the Selling Shareholders, with net proceeds (after deducting Offering expenses) distributed proportionally among them.
- Listing & Trading: Upon completion of the Offering and fulfillment of listing requirements, the Offer Shares will be listed and traded on the Saudi Exchange’s Main Market.
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
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 |
Overview of UCIC:
- Founded in 1988, UCIC operates through 4 subsidiaries (IPIC, UPIC, RAKPCO, IPC) and is the MENA region’s largest corrugated carton manufacturer.
- Produces diverse paper-based packaging solutions for multinational clients via 8 plants in KSA and UAE.
- Focuses on vertical/horizontal integration, geographic expansion, and global best practices.
- ISO-certified for quality, safety, compliance, and environmental management.
Group in Numbers
- Market Leadership: 37-40% KSA market share in corrugated cartons.
- Capacity: ~491k metric tons annually across 8 plants.
- Sustainability: 85% recycled raw materials (2023); 98% waste recycled.
- Workforce: 1,500+ employees.
- FY 2024 Financials:
- Revenue: SAR 1.34B
- Margins: Gross 17.9% (SAR 240M), EBITDA 16.3% (SAR 219M), Net 9.3% (SAR 125M).
- Returns: ROE 22.9%, ROA 12.5%.
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 on Company Website
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
