Riyadh, Kingdom of Saudi Arabia – United Carton Industries Company (the “Company”, or “UCIC”, along with its subsidiaries, the “Group”), the largest corrugated carton manufacturer in the Middle East and North Africa region (the “Region”), today announces its intention to proceed with the initial public offering (the “IPO” or “Offering”) and the listing of its ordinary shares (the “Shares”) on the Main Market of the Saudi Exchange.

On 15/06/1446H (corresponding to 16/12/2024G), the CMA approved the Company’s application for the registration and offer of 12,000,000 Shares (the "Offer Shares", and each an "Offer Share"), representing 30% of the Company’s total issued share capital, by way of the sale of existing shares by the Company’s selling shareholders ("Selling Shareholders").[1] The Company also received the Saudi Exchange’s conditional approval on 7/06/1446H (corresponding to 8/12/2024G) to list on the Main Market of the Saudi Exchange.

The final price of the Offer Shares will be determined following the book-building period, which will commence on Tuesday 24/10/1446H (corresponding to 22/04/2025G), and will end on Monday 30/10/1446H (corresponding to 28/04/2025G).

The Offering proceeds shall be distributed to the Selling Shareholders after deduction of the Offering expenses in proportion to the number of Offer Shares to be sold by each of them. The Company shall not receive any part of the Offering Proceeds.

Offering overview

  • ·         The Company’s IPO comprises an offering of 12,000,000 Offer Shares representing 30% of the Company’s total issued share capital.
  • ·         The Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with the CMA and the Saudi Exchange.
  • ·         The Company has appointed Al Rajhi Capital as its financial advisor, lead manager, bookrunner, and underwriter in connection with the Offering (the “Financial Advisor”).
  • ·         The final price of the Offer Shares will be determined following the book-building process, and prior to commencement of the subscription period for Individual Investors.
  • ·         Any Offer Shares that are not subscribed for by Individual Investors or Participating Parties shall be purchased by the Financial Advisor, in its capacity as underwriter.

Group overview

  • Established in 1988G, UCIC has four owned subsidiaries—Integrated Packaging Industries Company (IPIC), United Paper Industries Company (UPIC), Ras Al Khaimah Packaging Company Ltd (RAKPCO), and Integrated Paper Industry Company (IPC).
  • The Group is the largest corrugated carton manufacturer in the region and the market leader in the Kingdom.
  • The Group manufactures a diverse array of paper-based packaging solutions, catering to the needs of top domestic and multinational clients.
  • The Group operates 8 manufacturing plants across the Kingdom and the UAE, producing corrugated cartons, folding cartons, recycled containerboard paper, and moulded pulp products.
  • The Group focuses on horizontal and vertical integration, geographic expansion, and adopting global best practices.
  • The Group is committed to achieving the highest quality standards and is ISO certified for quality management, safety, legal compliance, and environmental management.

Group in numbers

  • Holding a 37%-40% market share in corrugated carton products in KSA, the Group leads the region as one of the largest corrugated carton manufacturers, demonstrating its market dominance.
  • Operating 8 strategically located manufacturing plants with a combined manufacturing capacity of about 491 thousand Metric Tons, the Group ensures seamless production to serve its expanding customer base.
  • Sustainability is at the core of the Group’s operations. In 2023G, 85% of raw materials used in corrugated carton plants were sourced from recycled materials, and Over 98% of the Group’s manufacturing waste was recycled, aligning with global environmental standards and corporate responsibility.
  • A dedicated workforce of 1,500+ employees drive innovation and efficiency.
  • In FY 2024G, the Company generated SAR 1,344 million in revenue, reflecting its significant scale and industry impact.
  • Strong profitability margins with a Gross Profit Margin 17.9% (Gross Profit: SAR 240 million), EBITDA margin 16.3% (EBITDA: SAR 219 million), and Net Profit Margin 9.3% (Net Profit: SAR 125 million), in FY 2024.
  • Robust returns on investment, with 22.9% ROE and 12.5% ROA in FY 2024G, showcasing efficient resource utilization and shareholder value creation.

Mohnish Rikhy, CEO of United Carton Industries Company, said: "The Company has established itself as the Kingdom’s premier one-stop paper packaging solutions provider, driven by a commitment to innovation, sustainability, and customer excellence. Our recent expansion into the UAE underscores our ambition to lead across the GCC, aligning with Saudi Vision 2030 by supporting industrial growth, localizing resources, and fostering economic diversification. This IPO represents a transformative moment for the Company, empowering us to scale operations, expand our product portfolio, and further our mission to be the preferred partner for packaging solutions in the region, delivering enduring value to stakeholders and contributing to the Kingdom’s vision for a sustainable future."

He added: "By leveraging our robust operational capabilities, market leadership, and strategic focus on innovation, we aim to further drive profitability and efficiency. Our strategy encompasses vertical and horizontal integration, the development of sustainable and innovative product lines, and investments in advanced technologies like AI and automation to optimize production processes. Through these measures, we are poised to maintain our leadership in the region while delivering consistent value to our existing and new shareholders."

For more information, please visit our IPO microsite at ipo.ucic.com.sa or explore our corporate website at www.ucic.com.sa.

CONTACT DETAILS 

Company

Email

Role

Al Rajhi Capital

UCICIPO@alrajhi-capital.sa

Financial Advisor, Lead Manager, Bookrunner and Underwriter

FGS Global

ucicIPO@fgsglobal.com

Media and Communications Advisor