Tabreed Plans IPO Amid Saudi Arabia's Flotation Resurgence
Deal News | Jan 10, 2025 | Zawya
Saudi Tabreed District Cooling Co, a leading cooling services provider, controlled in part by the UAE-listed Tabreed, is strategizing a potential Initial Public Offering (IPO) and has engaged with financial giants Citigroup Inc and SNB Capital to assist in this venture. This move is in anticipation of a broader IPO wave anticipated in Saudi Arabia, where a resurgence in flotations is expected, predicting up to 56 IPOs over the next two years, according to Al Rajhi Capital. As of March 2024, the firm is financially backed with significant stakes held by the kingdom’s wealth fund, PIF, and the Dubai-listed Tabreed. While decision-making processes regarding the IPO are currently underway, a definitive conclusion has yet to be reached. This development is symptomatic of a larger trend in the Saudi financial market, highlighting renewed enthusiasm and confidence within the sector.
Sectors
- District Cooling
- Financial Services
Geography
- Saudi Arabia – The primary location where Tabreed is planning its IPO and where the company operates.
- United Arab Emirates – Tabreed, a significant owner of Saudi Tabreed, is UAE-listed and influences the IPO process.
Industry
- District Cooling – Relevant as Saudi Tabreed District Cooling Co specializes in providing centralized cooling services.
- Financial Services – Citigroup and SNB Capital are involved in the financial advisory and underwriting for the potential IPO.
Financials
- 20% ownership – Tabreed's stake in Saudi Tabreed.
- 20% ownership – Public Investment Fund's stake in Saudi Tabreed.
- 56 flotations – The number of IPOs forecasted in Saudi Arabia over the next two years.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi Tabreed District Cooling Co | Target Company | Company | A Saudi Arabian provider of district cooling services, considering a public listing. |
| Tabreed (National Central Cooling Co) | PE Owner | Company | A Dubai-listed company holding a 20% stake in Saudi Tabreed. |
| Citigroup Inc | Financial Advisor | Company | Engaged to advise on the potential IPO of Saudi Tabreed. |
| SNB Capital | Financial Advisor | Company | Working alongside Citigroup to assist Saudi Tabreed in its IPO plans. |
| Public Investment Fund (PIF) | PE Owner | Company | Saudi's sovereign wealth fund with a 20% stake in Saudi Tabreed. |