Saudia and Tarabot Offload Stake in SAL Saudi Logistics, Retail Investors Can Subscribe to Stocks From Oct. 11

Saudi Arabia’s biggest airline, Saudia, and Tarabot Air Cargo Services are all set to offload their 24 million shares—a 30% stake—in the cargo firm SAL Saudi Logistics Services Co. to raise 2.54 billion riyals ($678 million). The offering is at an issue price of 98 riyals to 106 riyals each. The price range values SAL at as much as 8.48 billion riyals, reports Bloomberg.

The anchor book for institutional investors will be opened until October 1, while retail investors can subscribe to their quota from October 11 to October 13. Saudia currently holds a 70% stake in SAL, while Tarabot owns 30%.

Saudia and Tarabot are offering their shares amid an IPO boom, which sees car rental firm Lumi Rentals Co. going public on October 11, while oil driller ADES Holding Co., backed by the kingdom’s sovereign wealth fund, is on the verge of listing. ADES completed its IPO last week with $76.5 billion worth of subscriptions for its $1.2 billion IPO, the country’s largest this year.

SAL, the dominant cargo handling player in Saudi Arabia, commands an estimated 95% market share and specializes in managing transit and export shipments. In 2022, the company generated 1.22 billion riyals ($325 million) in revenue, with a net income of 362 million riyals. During the first half of this year, SAL experienced a 15% year-on-year revenue growth.

These developments indicate a revival of activity in the Persian Gulf’s largest and busiest listings market after a sluggish first half of the year. A decline in Saudi Arabia’s stock market from the latter half of last year until March, driven by weaker oil prices, impeded listing activity. However, offerings have recently regained momentum since the beginning of summer.