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Saudi Arabia’s Mutlaq Al-Ghowairi Contracting Company (MGC) has postponed its planned initial public offering (IPO) on the main market of the Saudi Exchange (Tadawul).

The Riyadh-based contractor said it had decided to delay the offering after completing the institutional bookbuilding process and consulting with its financial advisers.

In a statement issued on 9 June, the company said the offering had attracted significant interest from international, regional and local investors.

However, it added: “Following the completion of the institutional book-building process and careful consideration of the objectives and strategic priorities of the company and its selling shareholders, the company has decided to postpone the offering and will continue to evaluate the most appropriate timing to proceed with the offering.”

MGC announced plans in May to float 240 million shares, representing 30% of its issued share capital, through the sale of existing shares by certain shareholders.

Following this, MGC set the price range for its IPO at between SR11 ($2.9) and SR12.5 ($3.3) a share, implying an offer size of SR2.64bn to SR3bn ($704m-$800m).

The transaction was structured as a secondary sale, with MGC not issuing any new shares or receiving proceeds from the offering. Net proceeds were due to be distributed to the selling shareholders.

The planned IPO followed approval from the Capital Market Authority (CMA), which was granted on 31 December last year.

Founded in 1977, MGC specialises in construction, operations and maintenance services. Its core activities include water infrastructure, transport and urban development projects.

The company said it had delivered more than 80 projects over the past five years and reported a backlog of SR10.57bn ($2.8bn) as of 31 March.

MGC said the postponement would not affect its operations or project delivery.

“MGC’s operational and financial fundamentals remain strong, and this decision does not impact the company’s day-to-day operations, client relationships, project delivery, or strategic priorities.”

The company added that it remains committed to its growth strategy and supporting infrastructure projects across Saudi Arabia in line with Vision 2030.

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Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes: