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AlMajal AlArabi considers listing on Saudi Arabia’s Tadawul

The Saudi facilities management market is expected to grow at a 10 percent compound annual growth rate, expanding to about $56 billion by 2032 Alamy via Reuters
The Saudi facilities management market is expected to grow at a 10% compound annual growth rate, expanding to about $56bn by 2032
  • AlMajal AlArabi explores IPO
  • Growth of facilities management
  • Riyad Capital appointed adviser

Saudi Arabia’s AlMajal AlArabi Group (MAG) is considering an initial public offering on the Tadawul main market and has appointed Riyad Capital as an adviser, people familiar with the plans told AGBI.

The Riyadh-based facilities management and construction company is exploring a share sale as Saudi Arabia’s infrastructure and services sectors expands, driven by multi-billion-dollar government-led projects under Vision 2030.

MAG and Riyad Capital did not respond to requests for comment.

Founded in 1991, MAG has evolved into a strong player in Saudi Arabia’s facilities management sector, operating across 13 regions with more than 40,000 employees, according to its website.

The company provides facilities management, construction, operations, maintenance, security and catering services to more than 250 public and private sector clients.

MAG has been involved in several high-profile projects, including the Two Holy Mosques in Mecca and Medina, the Riyadh Metro, Neom, Diriyah and the Red Sea developments.

MAG reported 15 percent year-on-year revenue growth in the first half of 2024, reflecting rising demand for facilities management and infrastructure services in the kingdom.

The Saudi facilities management market is expected to grow at a 10 percent compound annual growth rate, expanding from roughly $26 billion in 2024 to $56 billion by 2032, according to research consultancy Fortune Business Insights.

Sources suggested that companies like MAG can expect to see growth opportunities due to the increased demand for sports and entertainment infrastructure linked to Saudi Arabia’s hosting of the World Expo 2030 and 2034 Fifa World Cup.

A potential listing would also align with Vision 2030, which seeks to broaden capital markets, attract private investment and expand non-oil sectors.

Saudi IPOs

Saudi Arabia has been one of the busiest IPO markets in the Middle East, with about 50 companies expected to list on Tadawul in 2025, according to analysts.

Since early 2024, 14 IPOs in Saudi Arabia have raised more than $100 million, with an average deal size of $271 million, according to data compiled by AGBI and the London Stock Exchange Group.

Eleven of these companies were trading above their IPO price as of market close on January 12.

Nice One, a beauty and personal care ecommerce platform, surged 55 percent in its first week of trading after its recent Tadawul debut, highlighting strong investor appetite for Saudi listings.

Five companies have approval to go public this year, including Derayah Financial, technology business Ejada Systems, animal feed maker Arabian Agricultural Investments and packaging company United Carton Industries. 

About 30 more are awaiting the regulatory nod to do likewise including low-cost carrier Flynas.

Historically, the petrochemicals and banking sectors have dominated Saudi Arabia’s bourse. 

Yet recent IPOs have provided investors with exposure to previously unrepresented economic sectors, with about two-thirds of flotations by companies that are protagonists in – and beneficiaries of – Vision 2030, Aqib Elahi Mehboob, head of sell-side research at BSF Capital in Riyadh, told AGBI earlier this month.

“The 2025 IPO pipeline is very strong, with some interesting transactions due to come to market,” he said. 

“If oil prices perform better this year, that will help IPOs.”