United Carton Industries to Offer 12 Million Shares in Saudi IPO

United Carton Industries Company (UCIC), a leading Saudi Arabian cardboard packaging manufacturer, has secured approval from the Capital Market Authority (CMA) to proceed with an initial public offering (IPO) of 12 million shares, representing 30% of its share capital.

The CMA's resolution, dated December 16, 2024, grants UCIC a six-month window to complete the offering and listing of its shares on the Main Market. The approval will lapse if the process is not finalized within this period.

UCIC's IPO will be confined to qualified investors, as defined by CMA regulations. The company plans to publish a prospectus detailing its financial statements, activities, and management well in advance of the offering's commencement, enabling potential investors to make informed decisions.

Established in 1990, UCIC has grown to become a prominent player in the Middle East's packaging industry, specializing in the production of corrugated cartons and related products. The company's manufacturing facilities are equipped with advanced technology to meet the diverse packaging needs of various sectors, including food and beverage, pharmaceuticals, and consumer goods.

The decision to go public aligns with Saudi Arabia's broader economic diversification efforts under Vision 2030, which aims to reduce the kingdom's dependence on oil revenues by fostering growth in other industries. By listing on the Saudi Exchange, UCIC seeks to enhance its capital base, expand its market reach, and contribute to the development of the local capital market.

The Saudi IPO market has witnessed significant activity in recent years, with several companies across various sectors opting to list shares publicly. This trend reflects growing investor confidence and the effectiveness of regulatory reforms implemented by the CMA to streamline the listing process and protect investor interests.

UCIC's upcoming IPO presents an opportunity for qualified investors to participate in the growth of a well-established company within the kingdom's industrial sector. The company's strong market position, coupled with the increasing demand for packaging solutions driven by economic expansion and a burgeoning consumer market, underscores the potential attractiveness of this offering.

As the IPO process unfolds, UCIC is expected to engage in investor roadshows and other promotional activities to provide further insights into its operations, financial performance, and strategic plans. These efforts aim to build investor confidence and ensure a successful subscription to the offered shares.
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