Saudi Arabia’s Public Investment Fund acquired a 30% stake in Saudi Tabreed in 2022.
The company intends to Saudi Cooling “Cooperating with Citigroup and SNB Capital to explore the possibility of an initial public offering in Riyadh,” according to a report published by Bloomberg.
Two informed sources, who requested anonymity due to the lack of publicity, said that the company “Saudi Cooling“, backed by Saudi Arabia’s Public Investment Fund and an Emirati company, may go public this year, but final decisions on details, including the size of the offering and the timetable, have yet to be made.
The largest shareholders in Saudi Tabreed Company
It is worth noting that Saudi Public Investment Fund He acquired a 30% stake in Saudi Tabreed in 2022, and the stake was valued at about $250 million at the time, according to a Bloomberg report.
Dubai-listed National Central Cooling Company, known as Tabreed, also owns a 21.8% stake in its Saudi subsidiary, according to its 2023 annual report.
PIF intends to offer stakes in other companies
The Saudi Public Investment Fund is the main entity responsible for implementing Crown Prince Mohammed bin Salman’s plans to diversify the Saudi economy away from dependence on oil.
With a deficit expected in the coming years, the fund has turned to bond markets, selling stakes in portfolio companies to raise money.
Besides the company Saudi Cooling The fund intends to list other companies for public subscription, including the largest medical procurement company in the kingdom, and a major port operator, according to Bloomberg.
$4 billion in IPOs in 2024
In 2024, Saudi Arabia witnessed IPOs exceeding $4 billion in value, with strong expectations for 2025.
The Saudi Capital Market Authority recently approved a number of planned IPOs, including technology services company Ejada, development company Umm Al-Qura Development and Construction, and financial services company Derayah.
As the climate change crisis escalates, the Middle East, where summer temperatures exceed 43 degrees Celsius, has become a major market for central cooling systems for buildings.
