MGC Scraps $799 Million IPO Amid Market Conditions

Mutlaq Al-Ghowairi Contracting has withdrawn plans for a Three billion riyal ($799 million) initial public offering, scrapping what would have been one of Saudi Arabia’s largest equity offerings this year.

The offering was withdrawn due to market conditions, Bloomberg reported, citing people familiar with the matter. The company will continue evaluating the appropriate timing for a future listing, according to a statement issued on Tadawul by the offering’s financial advisers, Al Rajhi Capital and Morgan Stanley Saudi Arabia.

The IPO was structured as a sale of 240 million shares, representing a 30% stake in the company. At the top end of the range, MGC would have been valued at 10 billion riyal. The advisers said the offering had attracted strong demand from institutional investors, with orders exceeding the number of shares available.

Founded in 1977, MGC is one of Saudi Arabia’s largest contractors, operating across water, transport and urban infrastructure projects. The company reported net profit of 819 million riyal in 2025, compared with 1.2 billion riyal a year earlier. First-quarter profit this year stood at 202 million riyal.

The withdrawal comes as investors assess regional market conditions amid ongoing geopolitical uncertainty, while Saudi Arabia continues to advance a pipeline of public offerings linked to its economic diversification programme. MGC said it will continue evaluating strategic growth opportunities and may revisit a public offering at a later date.