Harwal Group, a UAE-based building materials manufacturer, is set to merge two of its companies and list the combined entity on Saudi Arabia’s NOMU market. This strategic move aims to fund the group’s expansion across the Gulf Cooperation Council (GCC) region. The merger involves TSSC KSA and Interplast Riyadh, which together have an annual turnover of SAR 355 million ($100 million). The listing is expected to take place in the second half of 2025, with Alinma Investment Company acting as the financial advisor and bookrunner for the initial public offering (IPO).
Strategic Merger for Expansion
Harwal Group’s decision to merge TSSC KSA and Interplast Riyadh is a significant step towards expanding its footprint in the GCC region. TSSC KSA, 40% owned by Saudi Arabia’s Abdul Mohsen Al Hokair & Sons LLC, specializes in manufacturing roofing and cladding materials, prefabricated shelters, and modular houses. Interplast Riyadh, owned by Interplast UAE, produces plastic compounds, aluminum composite panels, and mechanical, engineering, and plumbing (MEP) systems.
The merger is expected to create a more robust entity capable of leveraging the construction boom in Saudi Arabia, driven by the kingdom’s ambitious giga projects. By combining resources and expertise, the new entity aims to enhance its competitive edge and capitalize on the growing demand for building materials and infrastructure solutions in the region.
Harwal Group’s strategic move aligns with its long-term vision of becoming a leading player in the building materials industry. The merger is anticipated to streamline operations, reduce costs, and improve efficiency, ultimately driving growth and profitability.
Listing on Saudi’s NOMU Market
The decision to list the combined entity on Saudi Arabia’s NOMU market is a strategic move to raise capital for further expansion. NOMU, the parallel market of the Saudi Stock Exchange, offers a platform for companies to access capital and enhance their visibility. The listing is expected to attract significant investor interest, given the strong performance and growth potential of the merged entity.
Alinma Investment Company, a prominent financial institution in Saudi Arabia, has been appointed as the financial advisor and bookrunner for the IPO. The company will play a crucial role in guiding Harwal Group through the listing process, ensuring compliance with regulatory requirements and maximizing the success of the IPO.
The funds raised from the IPO will be used to support Harwal Group’s expansion plans, including the development of new products and the establishment of additional manufacturing facilities. The listing is also expected to enhance the group’s corporate governance and transparency, further boosting investor confidence.
Future Prospects and Growth
Harwal Group’s merger and listing strategy is poised to drive significant growth and expansion in the coming years. The combined entity will benefit from increased financial resources, enhanced operational capabilities, and a stronger market presence. The group’s focus on innovation and quality will continue to be a key driver of its success.
The construction boom in Saudi Arabia presents a wealth of opportunities for Harwal Group. The kingdom’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil, has led to a surge in infrastructure projects. Harwal Group is well-positioned to capitalize on this trend, providing high-quality building materials and solutions to meet the growing demand.
In conclusion, Harwal Group’s merger of TSSC KSA and Interplast Riyadh, followed by the listing of the combined entity on Saudi’s NOMU market, marks a significant milestone in the group’s growth journey. This strategic move is expected to drive expansion, enhance competitiveness, and create value for shareholders, positioning Harwal Group as a leading player in the building materials industry.
