Morgan Stanley Advises on $799M MGC IPO Valued at 10B Riyals
MS•Morgan Stanley is advising on Mutlaq Al-Ghowairi Contracting Co.'s proposed 3 billion riyal IPO to raise up to 799 million dollars and value the company at about 10 billion riyals. Shareholders are offering 240 million shares (30% stake) at 11–12.5 riyals per share in the Gulf’s first major 2026 IPO.
1. IPO Overview
Mutlaq Al-Ghowairi Contracting Co. (MGC) plans to raise up to 3 billion riyals ($799 million) through an initial public offering in Riyadh, marking the first major Gulf IPO of 2026. The offering will see existing shareholders sell a 30% stake via 240 million shares priced between 11 and 12.5 riyals each.
2. Valuation and Share Details
At the top end of the price range, the IPO values MGC at approximately 10 billion riyals ($2.67 billion). The 30% stake sale and price band reflect strong investor appetite amid recent outperforming trends in Saudi capital markets.
3. Morgan Stanley's Advisory Role
Morgan Stanley, alongside Al Rajhi Capital, is advising on the transaction, positioning itself to earn underwriting and advisory fees from the deal. The involvement underscores the bank’s focus on tapping into Middle East capital market activity.
4. Market Context and Implications
The IPO comes as Saudi Arabia’s stock market outpaces regional peers, bolstered by elevated oil prices and diversified export infrastructure. Successful execution could spur further listings after a slow start to 2026, enhancing deal flow for global advisers.
