Dubai: SAL Saudi Logistics Services Company, a major player in cargo handling and logistics solutions in Saudi Arabia, has announced its intention to conduct an initial public offering (IPO) and list its ordinary shares on the Main Market of the Saudi Exchange - Tadawul. The IPO will involve the sale of 24,000,000 existing shares, representing 30 per cent of the company's share capital.
The IPO received approval from Tadawul on June 6, 2023, and from the Capital Market Authority on June 21, 2023. The final share price will be determined at the end of the book-building period.
The selling shareholders, who currently own 100 per cent of the company's shares, include Saudia with a 70 per cent share and Tarabot Air Cargo Services Limited with a 30 per cent share. After the IPO, the selling shareholders will collectively retain a 70 per cent share of the company, resulting in a 30 per cent free float.
HSBC Saudi Arabia has been appointed as the Sole Financial Advisor, Bookrunner, Global Coordinator, Lead Manager, and Underwriter for the offering.
“SAL is the Kingdom’s leading cargo handling player with growing operations across the logistics value chain; from cargo handling and logistics solutions, to passenger handling and fulfilment,” said Fawaz bin Mohammed Al Fawaz, Chairman of SAL. “The management team and I would like to express our gratitude to SAL’s shareholders and people, for their unwavering support in guiding the Company to where it is today, and their commitment to continue doing so in the future.”
SAL serves over 160 customers, including major cargo airlines and public and private sector entities. It has achieved strong financial performance, with revenues of SR1.22 billion and a net income of SR362 million in FY 2022, reflecting substantial growth.
With today’s announcement of our intention to float 30% of the Company’s shares to the public, it gives me great pride to invite investors to join us on our mission of delivering impact every day, and in line with our vision of being the logistics champion for a globally connected Saudi Arabia.
The IPO is open to two groups of investors: Tranche (A) for participating parties and Tranche (B) for individual investors. Participating parties will initially be allocated 24,000,000 shares (100 per cent of the total ooffer shares), with the potential for a reduction to 21,600,000 shares if there is sufficient demand from individual investors.
Tranche (B) is allocated a maximum of 2,400,000 shares (10 per cent of the offer shares), with potential reductions based on subscription levels.
Strategic roadmap and investment
SAL is committed to investing over SR1.5 billion in expanding its facilities to meet growing cargo handling demand through 2030. The company has a strategic roadmap focusing on cost containment, enhancing the customer experience, leveraging technology, skill development, and capitalizing on its market position.
The logistics firm is also expanding into passenger handling, aiming to provide ground handling services for domestic and international low-cost carriers. It has been granted an economic license for passenger handling services in KSA.