Saudi Arabia's SAL Logistics Services Company, a market-leading cargo handling player and growing logistics solutions business, has announced its intention to proceed with an initial public offering (IPO) of 30% of its share capital. This move could potentially raise as much as $678 million.
IPO Details
The IPO will involve the sale of 24,000,000 existing shares, representing 30% of the company's share capital. The price range for the offering has been set between SAR 98 and SAR 106 per share. The total offering size is expected to be between SAR 2,352 million (US$ 627 million) and SAR 2,544 million (US$ 678 million), implying a market capitalization at listing between SAR 7,840 million (US$ 2,091 million) and SAR 8,480 million (US$ 2,261 million).
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Selling Shareholders
The selling shareholders include Saudi Arabian Airlines Corporation (“Saudia”), with a shareholding of 70%, and Tarabot Air Cargo Services Limited, with a shareholding of 30%. Following the completion of the offering, the selling shareholders will collectively own 70% of the company’s share capital.
Book-Building Period
The book-building period for institutional investors will run until Oct. 1 while retail buyers will be able to place orders from Oct. 11 to Oct. 13. The final share price will be determined at the end of the book-building period.
Company Overview
SAL is the leading cargo-handling player in Saudi Arabia with a roughly 95% market share and also handles transit and export shipments. The company had a revenue of 1.22 billion riyals ($325 million) in 2022 and a net income of 362 million riyals. In the first half of this year, SAL posted revenue growth of 15% year-on-year.