Sources: The Saudi Al-Sulaiman group is studying the initial public offering of the IKEA franchise

Two sources said Saudi Arabia’s Al Sulaiman group is considering an initial public offering of its Ikea franchise next year and has hired Mollis & Co. as a consultant for the process.

The two sources, who asked for anonymity because the matter is not public, said the Al-Sulaiman group plans to invite investment banks early next year to apply for roles. in a potential public offering of shares.

They added that the deliberations are still on in an early stage and it was not immediately clear how much the company intends to invest in shares or raise funds in the agreement.

The Suleiman Group did not respond to a request for comment when it was contacted by Reuters on Wednesday. Mollis declined to comment.

IKEA has entered in Saudi Arabia in 1983 through the family-owned Al Sulaiman group which owns and operates a franchise of Swedish furniture manufacturers in Saudi Arabia and Bahrain.

Saudi Arabia is encouraging more family-owned companies to go public in an effort to revive capital markets as part of reforms aimed at reducing the kingdom’s dependence on oil revenues.

The kingdom has seen a surge in initial public offerings since oil giant Aramco went public on a record of $ 29.4 billion in 2019.

The Gulf region is also experiencing an IPO boom, with issuers doing that questraised over $ 15 billion a year in IPO, according to Refinitiv data.

The data showed that the region’s IPO yields in the first half of the year outpaced those of Europe, although global market volatility continued due to the Russian invasion of Ukraine.

Read More About: Business News