Saudi Logistics’ institutional order book hits $49bn 

Reuters/Faisal Al Nasser

The institutional book-building for Saudi Logistics Services Company’s (SAL) initial public offering generated an order book of SAR182.4 billion ($48.63 billion), meaning it was 72 times oversubscribed.

The IPO price was finalised top of the range at SAR106 per share, implying a market capitalisation of SAR8.48 billion on listing, the company said in a statement.

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

• Saudi Arabia’s stock market cap rises 5% to $3 trillion
• Supermarket chain Spinneys Dubai plans IPO next year
• Saudi Logistics expects to raise $678m from IPO

Retail subscription will be open from October 11 to 13. A maximum of 2.4 million shares, or 10 percent of the total IPO size, will be offered to retail investors.

SAL is 70 percent owned by Saudi Arabian Airlines Corporation (Saudia) and 30 percent by Tarabot Air Cargo Services. 

The two companies are jointly offering a 30 percent stake in SAL Logistics, comprising 24 million ordinary shares. 

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, backed by the kingdom’s Public Investment Fund, priced its IPO at the top of the range in September, implying a valuation of SAR15.2 billion.