Saudi company Norrent is working with Goldman Sachs Group and HSBC bank regarding a potential initial public offering, according to Bloomberg, citing sources described as familiar.

Shares of the digital services provider may be offered in Riyadh soon this year, but no final decisions have been made yet, and details including the size and timing of the offering are still under discussion, according to the sources.

The potential offering adds to the list of anticipated listings in Gulf countries, despite the conflict in the region.

Alternative asset management firm Investcorp Holdings, which acquired a majority stake in Norrent in 2022, had already started working with HSBC on a potential deal, according to Bloomberg.

Representatives of Goldman Sachs, HSBC, as well as Investcorp and Norrent, declined to comment.

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According to bankers, companies are preparing for public offerings once market conditions improve, with a pipeline of deals being readied in Saudi Arabia, the UAE, Kuwait, and Qatar.

Saudi Arabia currently has the largest number of prospective deals in the region.

Companies that have come to market this year have performed largely well. Shares of an Omani fertilizer company have risen about 25% since its $678 million offering this month, supported by the country's relative isolation from the conflict and export routes that avoid the Strait of Hormuz.

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In Kuwait, shares of retail company Trooli General Trading have risen about 50% since its offering in March, while e-commerce company Boutiqat is considering an IPO with Goldman Sachs that could take place as early as this year.

Saudi Arabia’s benchmark stock index has risen about 3% this year, outperforming its main Gulf peers except Oman.

Norrent was founded in 1998 and provides cloud computing, cybersecurity, data center management, and other IT services to over 1,500 clients, according to its website.

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Listing Norrent on the exchange would increase the presence of the technology sector in the Saudi market, where investors have long argued there are too few companies linked to the sectors driving the global stock rally this year.