Saudi Arabia's CPC plans IPO before June this year
Part of Saudi Binladin group to float 30% according to chief executive
Saudi Arabia's Construction Products Holding (CPC) is planning an initial public offering (IPO) within months.
The building materials and services company, which has annual sales of about 10bn riyals ($2.7bn), is part of the Saudi Binladin Group, the country's biggest construction company.
"The IPO is happening before June this year. The plan is to float 30 percent," Mutaz Sawwaf, CPC's chief executive, told Reuters late on the sidelines of the World Economic Forum in Davos.
There were only five IPOs in Saudi Arabia last year, raising $507mn. That was down from seven in the previous year, worth a combined $1.4bn.
CPC has been considering an IPO since 2011; the year that Standard Chartered's private equity arm bought a minority stake for $75mn.
"The delay was mainly because we're always buying companies and every time we do that we have to refile (IPO plans)," Sawwaf said, adding that GIB Capital and Samba Capital are advising CPC on the IPO.
Sawwaf did not indicate how the funds raised will be used, but said that it plans to develop the business across much of the Arab world.
"We are expanding hugely in Egypt," he said. "We are studying opportunities to buy factories there and we're opening four factories for building materials, which will be operational by July."
CPC is also negotiating the purchase of an industrial park in Iraq and has opened an office in Algeria, where it is in talks with the government to acquire industrial land. The company will open a third Qatari factory in June or July, Sawwaf added.