Three Saudi firms shelve IPOs on weak investor demand

August 30, 2026 at 04:41 PM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

Three Saudi companies have scrapped plans for initial public offerings scheduled over the next month, citing expectations of weak investor demand amid the Iran war. The decision, coordinated with the Capital Market Authority, signals foreign investors remain wary of new money into the kingdom's stock exchange. The move may delay other IPOs, including those planned by the Public Investment Fund.

Key Facts

Berain Water, Petrolube, and Facilities Management Company scrapped IPO plans in coordination with the Capital Market Authority.
The three firms have until the end of September to complete an offering or reapply for listing approval.
Saudi Arabia's stock market has risen almost 7% since the start of the year, after falling more than 12% last year.
Earlier this year, construction company Mutlaq Al Ghowairi pulled a share sale that would have valued it at $799 million.

IPO Postponements

The three companies — Berain Water, Petrolube, and Facilities Management Company — made the decision in recent days in coordination with the Capital Market Authority (CMA), the regulator. The CMA is keen to ensure the first IPOs under new chairman Mazen Al Sudairi are successful, according to one person familiar with the matter. Berain and Petrolube declined to comment, while CMA and Facilities Management did not respond to requests for comment. Under CMA rules, firms have a six-month window to complete a share sale after receiving approval, and the three firms have until the end of September to complete an offering or reapply.

Market Conditions

Gulf markets have been volatile since the Iran conflict began, with the Saudi bourse recovering initial losses to be up almost 7% since the start of the year. The Saudi bourse declined more than 12% last year, while the Dubai Financial Market is down nearly 3% over the same period and the main Abu Dhabi index is up 0.4%. Earlier this year, construction company Mutlaq Al Ghowairi pulled a share sale because of weak investor demand, in a deal that would have valued the company at $799 million. The Public Investment Fund had been considering a fresh wave of stock offerings in companies it controls this year and next, pinning hopes on a stock market revival to raise cash for new investments.

Regulatory Scrutiny

Saudi Arabia's stock market regulator is investigating the poor performance of recent IPOs, including looking into advice given by investment banks, as it tries to kickstart new listings, Semafor reported.