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Saudi Logistics expects to raise $678m from IPO

SAL, based in Jeddah, reported three-year compound annual growth of 20% in 2022 SAL
SAL, based in Jeddah, reported three-year compound annual growth of 20% in 2022
  • Share price range is SAR98-106
  • Business part-owned by Saudia
  • Price to be set on October 11

Saudi Logistics Services Company (SAL) will raise SAR2.54 billion ($678 million) from its initial public offering after disclosing an indicative price range.

The price range was set between SAR98 and SAR106 per share, the company said in a statement.

The logistics business is 70 percent owned by Saudi Arabian Airlines Corporation (Saudia) and 30 percent by Tarabot Air Cargo Services. Saudia and Tarabot are jointly offloading a 30 percent stake, comprising 24 million ordinary shares.

The total offering size is expected to be between SAR2.35 billion and SAR2.54 billion, implying a market capitalisation of between SAR7.84 billion and SAR8.48 billion.

Institutional book-building began on Monday. The final share price will be set at the end of the book-building period on October 1.

Retail subscription will run from October 11 to 13.

HSBC Saudi Arabia is the sole financial adviser, bookrunner, global coordinator, lead manager and underwriter.

Headquartered in Jeddah, SAL posted revenue of SAR1.22 billion in 2022. Its three-year compound annual growth rate was 20 percent. Net income was SAR362 million, an increase of 24 percent over three years and reflecting a 30 percent net income margin.

The company operates more than 90 percent of the cargo-handling business in Saudi Arabia, covering international airports in Riyadh, Jeddah, Medina and Dammam.

Oil and gas driller Ades, which is backed by the kingdom’s Public Investment Fund, priced its IPO at the top of the range last week, implying a valuation of SAR15.2 billion.

Shares in Saudi Arabian auto rental company Lumi jumped as much as 30 percent above their listing price on its market debut on Monday after raising more than SAR1 billion in its recent IPO.