United Carton Industries Co. (UCIC), a Saudi Arabia-based packaging manufacturer, experienced a 2% increase in its stock price, reaching 51 riyals (US$13.6) during its trading debut on May 27, 2025.

It’s the first Middle Eastern company to list since US President Donald Trump announced sweeping tariffs on April 2.

The stock initially rose as much as 9%, but later dipped to 49 riyals (US$13.7), 2% below the offer price.

Through its initial public offering (IPO), UCIC raised 600 million riyals (US$160 million), pricing at the top of its marketed range. This valuation placed the company at about 2 billion riyals (US$533.4 million).

The IPO garnered significant interest, attracting US$20 billion in orders despite the mixed performance on the first trading day.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Saudi IPOs show resilience amid regional economic pressures

Saudi Arabia continues to dominate the Middle East’s IPO landscape despite broader market challenges.

The kingdom hosted 12 of the region’s 14 IPOs in Q1 2025, with proceeds increasing 33% year-over-year to reach US$1.6 billion 1.

This robust IPO pipeline demonstrates investor confidence in Saudi markets despite regional indices dropping over 6% following US tariff announcements and oil price declines 2.

UCIC’s mixed performance breaks from the Saudi norm where IPOs typically hit maximum allowed price increases on day one, suggesting investors are becoming more selective while still showing interest, evidenced by the $20 billion in orders despite the eventual mixed trading.

The consumer sector has emerged as the leading segment for new listings, representing 42% of total GCC IPO proceeds, reflecting the kingdom’s ongoing economic diversification beyond oil 1.

2️⃣ US tariffs create new headwinds for Middle Eastern capital markets

UCIC’s debut marks the first Middle Eastern IPO since President Trump’s April 2nd tariff announcement, testing investor sentiment in a new economic landscape.

The 10% blanket tariff on imports to the US has triggered significant market turbulence across the Gulf, with the Saudi Tadawul index falling 8% since late March 2.