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Saudi logistics company SAL announces IPO

By Andrew Hammond
SAL is owned by Saudi Arabian Airlines - Saudia - and Tarabot Reuters
SAL is owned by Saudi Arabian Airlines - Saudia - and Tarabot
  • 30% of shares on offer
  • Price determined after book-building
  • Managed by HSBC

Saudi Logistics Services Company – known as SAL – said on Tuesday it would launch an initial public offering of 30 percent of its shares on the Saudi market.

It was not clear when the SAL IPO will take place. A statement said the price of each of the 24 million shares would be determined after the book-building period, which will be managed by HSBC Saudi Arabia. 

Headquartered in Jeddah, SAL last year posted revenue of SAR1.22 billion ($330 million), with a three-year compound annual growth rate of 20 percent. Net income was SAR362 million, an increase of 24 percent over three years and reflecting a 30 percent net income margin.

Owned by Saudi Arabian Airlines and Tarabot Air Cargo Services, SAL operates more than 90 percent of the cargo handling business in Saudi Arabia, covering international airports in Riyadh, Jeddah, Medina and Dammam.

Abu Dhabi-based retail conglomerate Lulu Group International said this week it will launch a Gulf IPO in the first half of 2024, though it has not yet decided on which regional stock market.

Despite this and the SAL announcement, IPO activity in the Middle East and North Africa has taken a hit over the past year.

The total value of listings fell 80 percent year on year, according to a report by EY IPO Eye analysts for the second quarter of 2023. 

However, the number of IPOs rose by 44 percent, dominated by listings from Saudi Arabia and the UAE. 

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