The Clap
Saudi Al Sulaiman Group is considering offering its IKEA franchise to the public next year, according to Reuters.
The Deets
Sources say that the group appointed Moelis & Co. as a consultant for the operation and intends to invite investment banks to play roles in the potential offering.
Al Sulaiman Group indicated that discussions are still at an early stage and that the size of the offering or the value of the deal is not yet clear.
Al Sulaiman Group
Al Sulaiman Group operates in retail, multi-channel, services, and real estate.
The group includes five companies that provide their services in Saudi Arabia and the Gulf countries, including IKEA Saudi Arabia, and Bahrain.
Why this Matters
The Saudi government encourages more family-owned companies to list on the Tadawul to strengthen capital markets, as part of economic reforms aimed at reducing KSA’s dependence on oil revenues.
