Swiss companies can successfully expand into the Middle East. A vehicle manufacturer from the St. Gallen Rhine Valley is going public in Saudi Arabia.
It is an incredible success story that a vehicle manufacturer from the St. Gallen Rhine Valley now has to show for itself.
GK Grünenfelder started the CGS joint venture in Saudi Arabia in 1976, and now this company is even going public on the Tadawul stock exchange in Riyadh.
Expansion from eastern Switzerland
The Swiss commercial vehicle manufacturer, which is headquartered in Kriessern SG and develops and produces everything from refrigerated bodies for food transport to complex trailers for the Swiss retail trade and the Swiss military, is bringing 30 percent of the joint venture to the local capital market with its Saudi partner.
According to the stock exchange prospectus, CGS intends to use the money to expand its production of refrigerated vehicles and cold stores in Al Kharj.
In addition to ambulances, management also wants to push ahead with production for solutions in the defense, oil, and natural gas sectors.
Even land purchases in the kingdom are being considered.
Founder family on the board
The CGS Group employs around 750 people in Riyadh, Jeddah, Dammam, and Bahrain and is now one of the largest producers of refrigerated vehicles and cold storage facilities in the Middle East.
Marcel and Albert Grünenfelder from the Swiss founder family sit on the CGS board.
Darat Esmat Bin Abdul-Samad Al Saady Holding and GK Grünenfelder International AG are each expected to retain a 35 percent stake after the IPO.
There is therefore no sign of the existing shareholders completely withdrawing from the company, which currently has a turnover of around 500 million riyals (approximately 100 million Swiss francs) and generates a profit margin of 13.5 percent.
Private investors can also invest
The Saudi Capital Market Authority (CMA) approved the IPO back in June 2025.
The IPO is now set to take place in the Saudi capital Riyadh in December, with the pricing phase running from November 5 to 11, as the company announced this week.
Of the 30 million shares being placed, at least 6 million will go to private investors.
It is therefore very much a public offering and not just an investment for institutional investors.
Diversification into the Arab world
At over 600 pages, the prospectus is on a par with IPOs in Switzerland or the US.
The professionalization of capital markets in the Arab world is well advanced, but many Swiss people remain unaware of this.
Grünenfelder’s expansion into the Middle East also shows that Swiss companies can be successful even in Saudi Arabia through courage and perseverance.
So, there is no need to focus solely on Europe, Asia, or America. This small vehicle manufacturer from the St. Gallen Rhine Valley is leading the way.
November, 1st, 2025/kut./ena.
