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Saudi engineering and construction firm Red Sea International Co (RSI) announced that its board has agreed to pursue an initial public offering (IPO) for its subsidiary, Fundamental Installation for Electric Work Co (First Fix), subject to shareholder and regulatory approvals.
In a filing last week to Tadawul, RSI said the board approved the “material transaction” on June 23, marking a key milestone in the company’s broader strategy.
While RSI will retain its entire stake in First Fix, the IPO is being pursued due to the subsidiary’s strategic significance and anticipated market impact.
RSI noted that final execution hinges on receiving approval at a general assembly of its shareholders, a mandatory step before seeking the green light from the Capital Market Authority (CMA) and Tadawul. A circular detailing the transaction will follow regulatory clearance.
Earlier this month, on June 3, RSI appointed a special committee of three independent directors — Mohammed Al‑Munajjed, Lama Al‑Sulaiman and Hans‑Martin Stockmeier — to advise shareholders regarding the proposed IPO, the filing added.
“An invitation for a general assembly to vote on the significant transaction will be issued upon obtaining regulatory approval, along with a shareholders’ circular containing more transaction details,” RSI said.
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Red Sea International’s largest operating units
First Fix, established in 2015, is one of RSI’s largest operating subsidiaries, specialising in mechanical, electrical and plumbing (MEP) contracting. It has executed over 190 projects across the Gulf Cooperation Council (GCC), supported by a workforce of more than 8,000.
RSI acquired a 51 per cent stake in the subsidiary in June 2023 for SAR544.2m ($145m), in a move designed to bolster its integrated construction capabilities.
The unit has since contributed substantially to RSI’s performance, delivering consistent financial and operational results, the firm said.
“The transaction is material given First Fix’s importance to RSI’s operations and the anticipated effect of the IPO on the subsidiary,” the company shared.
It added that the IPO process will comply with all regulatory procedures, including approvals from its shareholders, the Capital Market Authority, and Tadawul. “Any material developments will be announced in due course,” the filing said.
