Investcorp and Saudi Investors Acquire Fire Safety Firm REDA Gulf Ahead of Planned IPO
Investcorp joins Saudi backers in acquiring industrial fire safety company REDA Gulf, betting on a recovery in the kingdom's IPO market.
Bahrain-based investment firm Investcorp has joined a consortium led by Thara Future Investments and Saudi family office AlTouq Group to acquire REDA Gulf, an industrial fire safety and security business. The buyout positions the company for an initial public offering (IPO) within the next few years.
Thara Future Investments was founded by Hisham Attar, a former executive at the Public Investment Fund. Attar stated that REDA is a leader in a highly regulated industry poised to benefit from increased focus on safety. This transaction marks one of the first deals involving a foreign investor entering the kingdom since the conflict with Iranian-backed Houthi militias escalated recently.
Investcorp participated through its $500 million Saudi Pre-IPO fund. The deal represents a bet on the recovery of Saudi Arabia’s IPO market, which had slumped due to poor post-listing performance and new regulations potentially deterring investment banks from underwriting.