Aljazira Capital is leading the deal as financial adviser and is joint bookrunner with Arqaam Capital
Consolidated Gruenenfelder Saady Holding Company has launched its IPO as new listing activity has picked up on Saudi Arabia's Tadawul ahead of year end.
An offer for 30m secondary shares, representing 30% of the company, was approved by the Capital Market Authority at the end of June with approval valid for six months.
The company, which provides refrigerated storage and transport, is majority owned by the families of founders Swiss engineer Albert Gruenenfelder and Saudi entrepreneur Esmat Al-Saady.
CGS describes itself as the market leader in the refrigeration sector, with a 41% market share in transport refrigeration based on 2023 revenues, and has operations in Saudi Arabia and Bahrain.
Among competitors in transport refrigeration, it cites Tadawul-listed Alshehili Metal Industries Company and among static refrigeration companies the local arms of international listed firms Johnson Controls, GEA Group and Daikin Industries.
Alshehili trades at a P/E of 11.4 times for the last twelve months. The international peers trade between 19.2 and 25.3 times P/E on 2026 numbers.
For the financial year to March 2025 CGS reported revenue of SR504m (US$144m) with net profit of SR66m. At Alshehili's multiple that would give a market cap of around SR750m and IPO of SR225m.
Between 2023 and 2025 it has achieved a revenue CAGR of 40%. The company is hoping to achieve further growth with the opening of a second manufacturing facility in central Saudi Arabia at an expected cost of SR150m over the next three years.
Bookbuilding runs from November 5-11 with a retail offer of up to 20% running from November 26-27. Final allocations will be announced on December 3 with refunds by December 4.
Expenses of the offer are expected at around SR22m.
Aljazira Capital is leading the deal as financial adviser and is joint bookrunner with Arqaam Capital.
The deal comes towards the end of bookbuilding for the IPO of car rental business Cherry Trading Company and will also join Amanat's spin-off Almasar Alshamil Education in the market. Al Ramz Real Estate Company is expected to launch an IPO before year end with its CMA approval due to expire at the end of December.
Source: IFR