Retail investors will start today, May 12, subscription to 2.4 million shares of United Carton Industries Co. (UCIC) at SAR 50 each.
The shares offered to retail investors represent 20% of the total floated shares.
The retail offering will end on May 13.
The Capital Market Authority (CMA) approved the company’s application to float 12 shares on theMainMarket (TASI) last December, representing 30% of the company’s capital.
The institutional offering ended last week, with a coverage ratio of 126x.
This is the fourth IPO on TASI this year after Derayah Financial on Feb. 20, Entaj on Feb. 26, and Masar on May 5.
Tadawul witnessed 14 IPOs last year,following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30,Modern Mills for Food Products Co.on March5,MiahonaCo.and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28,Rasan Information Technology Co.on May 29,Almajed for OudCo.on Sept. 15,Arabian Mills Co.on Sept. 18, Fourth Milling Co. (MC4)on Oct. 2,Tamkeen Human Resources Co.on Nov.5,United International Holding Co.on Nov. 19, Almoosa Health Co.on Dec. 23 and Nice One Co. on Dec. 24.
Company profile:
UCIC was established in 1988 as a Saudi closed-joint stock company in Jeddah.
The company operates with SAR 400 million capital, divided into 40 million shares at a par value of SAR 10 each.
Geographical Location of the Company:
Headquartered in Jeddah, the group operates from four locations in the Kingdom and two in the UAE.
The company owns 100% of its four subsidiaries. The most recent acquisition was Ras Al Khaimah Packaging Co. Ltd. (RAKPCO) in 2024.
By the end of 2023, revenues of these subsidiaries accounted for approximately 15% of the company’s overall topline,as shown in the table below:
Subsidiaries
Subsidiary
Subsidiary
Ownership Percentage
Production
Revenue(SAR mln)
Profit(SAR mln)
2022
2023
2022
2023
IPIC – KSA
100%
Folding cartons
Molded pulp products
113
108.6
2.4
4.8
United Paper Industries Co. (UPIC) – UAE
99.7%
Corrugated cartons
145.1
100.8
6.6
(1.5)
RAKPCO – UAE
100%
Corrugatedcartons
– Acquired in July 2024, valued at SAR 13.7 million
– 2024 revenue exceeds SAR 15.3 million
– If the acquisition had occurred in January 2024, it would have contributed around SAR 16 million to group-wide revenue and a loss of SAR 3 million
Integrated Paper Industry Co. (IPC) – KSA
100%
Cardboard and corrugated paper products
– Established in September 2024, with remaining assets purchased for SAR 10 million
The company offers four main product lines, primarily consisting of paper- and cardboard-based materials, each serving distinct end-use markets. These products are manufactured through UCIC and its wholly-owned subsidiaries,as detailed below:
Company Products
Product
Description
End Uses
Producing Entity
Revenue Contribution
Corrugated Cartons
Rigid cardboard boxes
Shipping, storage, general packaging
UCIC, RAKPCO
86%
Folding Cartons (Duplex)
Foldable cardboard boxes and cartons
Food beverage packaging – cheese, etc.
IPIC
7%
Pulp Products
Recycled paper materials
Paper, tissue production – cup holders
IPIC
0.8%
Containerboard Paper
Testliner paper
Outer layer for cardboard manufacturing
UPIC
8%
Fluting paper
Inner corrugated layer in cardboard
Corrugated cartons remain UCIC’s primary revenue and profit driver, accounting for 85% of total revenue by the end of 2024.
Product Revenue Profit Performance (SAR mln)
Product
Revenue
Profit
2023
2024
2023
2024
Corrugated Cardboard
1,214.7
1,151.8
168.9
137.0
Folding Cartons Pulp Products
108.6
87.2
(0.5)
5.5
Packaging Materials
42.2
112.8
(1.5)
(2.6)
Corrugated cardboard production capacity is the highest among other products, reaching 381,000 tons by the end of December 2023. According to its strategic plans, the company expects this to increase to 416,000 tons annually by 2026.
Production Capacity as of Dec. 31, 2023
Products
Production Capacity (‘000 tons)
Average Usage
Notes
Corrugated Cartons
381
80.1%
Output capacity likely to rise to 416,000 tons by 2026
Folding Cartons
20.2
77.7%
The company expects to increase capacity or seek acquisitions
Pulp Cartons
2.2
69.7%
—
Cardboard (Testliner Fluting Paper)
70
94.3%
Company Profile
Company
United Carton Industries Co. (UCIC)
Core Activities
Carton products
Capital
SAR 400 mln
Number of Shares
40 mln
Share Par Value
SAR 10
IPO Summary
Offering Percentage
30%
Offering Price
SAR 50
Total No. of Shares Offered to Individual Investors
2.4 mln shares (20% of the offering size)
IPO Minimum Limit (Individual Subscribers)
10 shares
IPO Maximum Limit (Individual Subscribers)
400,000 shares
Offering period
From May 12-13, 2025
Final allocation announcement
May 18, 2025
Refund (if any)
May 18, 2025
Company Shareholders
Shareholders
Before IPO
After IPO
Number of Shares
(mln)
Ownership
(%)
Number of Shares
(mln)
Ownership
(%)
Zamil Group Holding*
12.00
30.0%
8.40
21.0%
Omar Kassem Alesayi Co.
12.00
30.0%
8.40
21.0%
Frimex Investment
12.00
30.0%
8.40
21.0%
Zamil Group Investment Co.
2.00
5.0%
1.40
3.5%
Eastern Industrial Investment**
2.00
5.0%
1.40
3.5%
Public
—
—
12.00
30.0%
Total
40.00
100%
40.00
100%
**Eastern Industrial Investment owns 1% of Zamil Group Holding
Additional Information
Financial Advisor, Lead Manager, Bookrunner and Underwriter
Al Rajhi Capital
Receiving Banks
Derayah Financial, Al Rajhi Capital, SNB Capital, BSF Capital, Alinma Investment, Riyad Capital, Albilad Capital, AlJazira Capital, ANB Capital, Alistithmar Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, and GIB Capital
Retail investors will start today, May 12, subscription to 2.4 million shares of United Carton Industries Co. (UCIC) at SAR 50 each.
The shares offered to retail investors represent 20% of the total floated shares.
The retail offering will end on May 13.
The Capital Market Authority (CMA) approved the company’s application to float 12 shares on theMainMarket (TASI) last December, representing 30% of the company’s capital.
The institutional offering ended last week, with a coverage ratio of 126x.
This is the fourth IPO on TASI this year after Derayah Financial on Feb. 20, Entaj on Feb. 26, and Masar on May 5.
Tadawul witnessed 14 IPOs last year,following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30,Modern Mills for Food Products Co.on March5,MiahonaCo.and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28,Rasan Information Technology Co.on May 29,Almajed for OudCo.on Sept. 15,Arabian Mills Co.on Sept. 18, Fourth Milling Co. (MC4)on Oct. 2,Tamkeen Human Resources Co.on Nov.5,United International Holding Co.on Nov. 19, Almoosa Health Co.on Dec. 23 and Nice One Co. on Dec. 24.
Company profile:
UCIC was established in 1988 as a Saudi closed-joint stock company in Jeddah.
The company operates with SAR 400 million capital, divided into 40 million shares at a par value of SAR 10 each.
Geographical Location of the Company:
Headquartered in Jeddah, the group operates from four locations in the Kingdom and two in the UAE.
The company owns 100% of its four subsidiaries. The most recent acquisition was Ras Al Khaimah Packaging Co. Ltd. (RAKPCO) in 2024.
By the end of 2023, revenues of these subsidiaries accounted for approximately 15% of the company’s overall topline,as shown in the table below:
Subsidiaries
Subsidiary
Subsidiary
Ownership Percentage
Production
Revenue(SAR mln)
Profit(SAR mln)
2022
2023
2022
2023
IPIC – KSA
100%
Folding cartons
Molded pulp products
113
108.6
2.4
4.8
United Paper Industries Co. (UPIC) – UAE
99.7%
Corrugated cartons
145.1
100.8
6.6
(1.5)
RAKPCO – UAE
100%
Corrugatedcartons
– Acquired in July 2024, valued at SAR 13.7 million
– 2024 revenue exceeds SAR 15.3 million
– If the acquisition had occurred in January 2024, it would have contributed around SAR 16 million to group-wide revenue and a loss of SAR 3 million
Integrated Paper Industry Co. (IPC) – KSA
100%
Cardboard and corrugated paper products
– Established in September 2024, with remaining assets purchased for SAR 10 million
The company offers four main product lines, primarily consisting of paper- and cardboard-based materials, each serving distinct end-use markets. These products are manufactured through UCIC and its wholly-owned subsidiaries,as detailed below:
Company Products
Product
Description
End Uses
Producing Entity
Revenue Contribution
Corrugated Cartons
Rigid cardboard boxes
Shipping, storage, general packaging
UCIC, RAKPCO
86%
Folding Cartons (Duplex)
Foldable cardboard boxes and cartons
Food beverage packaging – cheese, etc.
IPIC
7%
Pulp Products
Recycled paper materials
Paper, tissue production – cup holders
IPIC
0.8%
Containerboard Paper
Testliner paper
Outer layer for cardboard manufacturing
UPIC
8%
Fluting paper
Inner corrugated layer in cardboard
Corrugated cartons remain UCIC’s primary revenue and profit driver, accounting for 85% of total revenue by the end of 2024.
Product Revenue Profit Performance (SAR mln)
Product
Revenue
Profit
2023
2024
2023
2024
Corrugated Cardboard
1,214.7
1,151.8
168.9
137.0
Folding Cartons Pulp Products
108.6
87.2
(0.5)
5.5
Packaging Materials
42.2
112.8
(1.5)
(2.6)
Corrugated cardboard production capacity is the highest among other products, reaching 381,000 tons by the end of December 2023. According to its strategic plans, the company expects this to increase to 416,000 tons annually by 2026.
Production Capacity as of Dec. 31, 2023
Products
Production Capacity (‘000 tons)
Average Usage
Notes
Corrugated Cartons
381
80.1%
Output capacity likely to rise to 416,000 tons by 2026
Folding Cartons
20.2
77.7%
The company expects to increase capacity or seek acquisitions
Pulp Cartons
2.2
69.7%
—
Cardboard (Testliner Fluting Paper)
70
94.3%
Company Profile
Company
United Carton Industries Co. (UCIC)
Core Activities
Carton products
Capital
SAR 400 mln
Number of Shares
40 mln
Share Par Value
SAR 10
IPO Summary
Offering Percentage
30%
Offering Price
SAR 50
Total No. of Shares Offered to Individual Investors
2.4 mln shares (20% of the offering size)
IPO Minimum Limit (Individual Subscribers)
10 shares
IPO Maximum Limit (Individual Subscribers)
400,000 shares
Offering period
From May 12-13, 2025
Final allocation announcement
May 18, 2025
Refund (if any)
May 18, 2025
Company Shareholders
Shareholders
Before IPO
After IPO
Number of Shares
(mln)
Ownership
(%)
Number of Shares
(mln)
Ownership
(%)
Zamil Group Holding*
12.00
30.0%
8.40
21.0%
Omar Kassem Alesayi Co.
12.00
30.0%
8.40
21.0%
Frimex Investment
12.00
30.0%
8.40
21.0%
Zamil Group Investment Co.
2.00
5.0%
1.40
3.5%
Eastern Industrial Investment**
2.00
5.0%
1.40
3.5%
Public
—
—
12.00
30.0%
Total
40.00
100%
40.00
100%
**Eastern Industrial Investment owns 1% of Zamil Group Holding
Additional Information
Financial Advisor, Lead Manager, Bookrunner and Underwriter
Al Rajhi Capital
Receiving Banks
Derayah Financial, Al Rajhi Capital, SNB Capital, BSF Capital, Alinma Investment, Riyad Capital, Albilad Capital, AlJazira Capital, ANB Capital, Alistithmar Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest, Sahm Capital, and GIB Capital
