Saudia (SV, Jeddah International) Chief Financial Officer, Muhammad Albakri, says the IPO of the carrier's ground-handling unit, Saudi Ground Services Company, will occur in the next few weeks with hopes the sale of a 30% stake in the firm will raise SAR2billion (USD533.148million).
Speaking to Bloomberg news, Albakri said IPOs for Saudia Cargo and MRO division Saudia Aerospace Engineering Industries (SAEI) would follow in 2015 and 2017 respectively. The carrier is looking to offload 30% stakes of both for “at least” double the value of the Saudi Ground Services Company. In all, the airline hopes to raise SAR10billion (USD2.7billion) from the sales.
The first of the units to be sold publicly, Saudi Airlines Catering Co, raised USD347million with an IPO of 30 percent of its shares in 2012.
Other units listed for privatization include the Prince Sultan Aviation Academy, Saudia Private Aviation (Jeddah International), Medical Services (which includes a 400-bed hospital), and Saudi Airlines Real Estate Development Company.
