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Saudi Binladin Group plans IPO for key division

One of the biggest family businesses in the Middle East could launch its first IPO in a matter of months, according to media reports.

One of the biggest family businesses in the Middle East could launch its first IPO in a matter of months, according to media reports.

Saudi Binladin Group, a second-generation construction company, could list one of its biggest divisions, Construction Products Holding (CPC), as early as June.

Earlier this month, Ernst & Young forecast a strong appetite for IPOs among Middle Eastern family businesses in 2014, following momentum gathered late last year.

CPC's chief executive, Mutaz Sawwaf, told Reuters at the World Economic Forum in Davos: "The IPO is happening before June this year. The plan is to float 30%."

Saudi Binladen, currently headed by Bakr Bin Mohammed Bin Ladin, had revenues of more than $30 billion (€21.9 billion) in 2012, with CPC contributing approximately $2.7 billion to this sum in 2012.

Sawwaf added the company had been considering a listing since 2011, when it sold a minority stake worth $75 million to Standard Chartered's private equity division.

He said: "The delay was mainly because we're always buying companies and every time we do that we have to re-file [IPO plans]."

According to Ernst & Young, Saudi Arabia had five IPOs in 2013 – the second most listings of any Middle East and North African country that year. This raised a total $507 million, but was still a fall from the $1.4 billion raised in 2012 from seven IPOs.

Tunisia had the most IPOs in 2013, with a total of nine.

Commentators have said an IPO of CPC could prompt other big businesses in the country to consider listing. 

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