Three Saudi firms postpone IPOs amid weak demand linked to Iran conflict

Three Saudi enterprises—bottled-drink producer Berain Water, lubricants and auto-service provider Petrolube, and a Facilities Management Company—have scrapped IPOs slated for the next month after discussions with the Capital Market Authority. The decision stems from expectations of muted investor demand, a sentiment aggravated by the ongoing Iran war. The regulator, now led by Mazen Al Sudairi, aims to ensure that the first listings under his tenure perform well.

The firms retain a deadline of late September to either finalize their offerings or restart the approval process. This setback follows a similar withdrawal by construction firm Mutlaq Al Ghowairi, whose deal would have valued it at $799 million. Market volatility has persisted, with Saudi equities up about 7% year-to-date after a 12% decline last year, while neighboring Gulf markets show mixed performance.