Saudi miner $67 million IPO gains in debut despite Iran war

Saudi Arabian miner Saleh Abdulaziz Al Rashed & Sons Co. surged in its Riyadh trading debut, defying ongoing Iranian missile and drone strikes across the Gulf as the war with the US and Israel entered its twelfth day.

Shares in the mining and construction materials firm rose as much as 20% to 54.20 riyals, from the 45 riyal listing price set on Feb. 9, before paring gains to the range of 51.80 riyals. Trading was briefly halted once in the first 20 minutes and again a few hours later. The offering price had been set more than two weeks before hostilities began.

The company’s shareholders fetched 251 million riyals ($67 million) from the sale of 5.58 million existing shares, representing 30% of its capital. The institutional tranche was 67.7 times oversubscribed and valued the company at about 837 million riyals at listing.

Gulf stock markets have seen a sharp reversal of fortunes since Iranian missiles and drones began striking targets across the region and traffic through the Strait of Hormuz ground to a near halt.

Saudi Arabia’s Tadawul, one of last year’s worst performers amid valuation concerns and lower oil prices, has climbed more than 2% since the war began. Crude oil’s surge has lifted heavyweights such as Saudi Aramco and driven the index higher.

Saudi Arabia has also faced fewer direct Iranian strikes than the UAE, which has been targeted by more than 1,700 Iranian missiles and drones, most of them intercepted.

The Saudi market also has a comparatively lower reliance on the Strait of Hormuz than other Gulf countries, and investors seem to be factoring in the potential to reroute parts of the supply chain through the Red Sea, which could help mitigate disruption risks, according to Chiro Ghosh, group head of research at SICO Bank. The index’s weak performance until recently has also made valuations relatively more attractive, he added.

Dubai and Abu Dhabi’s bourses, in contrast, have come under pressure after rallying through much of 2025 on booming real estate and banking stocks.

The attacks have tested the UAE’s safe-haven status, which had drawn tourists and new residents since the pandemic. Parking operator Parkin, one of 2024’s standout listings amid Dubai’s rapid population growth, has fallen about 13% since the conflict began.

Even before the war erupted, the Middle East’s once booming IPO market had slowed down amid valuation concerns and growing competition from other global markets. Saleh Abdulaziz Al Rashed & Sons has been the kingdom’s only main market listing so far this year.

Still, a number of firms have been drawing up plans to go public as early as this year, and the pipeline includes sizeable potential transactions such as Emirates Global Aluminium and Saudi contractor Mutlaq Al Ghowairi, Bloomberg News has reported.

Saleh Abdulaziz Al Rashed & Sons was founded in 1975 and operates in construction materials, mining and industrial spare parts in Saudi Arabia, according to its website. The company reported a 23% increase in 2025 revenue to 739.5 million riyals, while net profit rose 54% to 91.7 million riyals.

(By Laura Gardner Cuesta)