SAL Saudi Logistics has issued its prospectus for a planned initial public offering (IPO) of a 30% stake in the Saudia (SV, Jeddah International) cargo firm, representing 24 million shares, on the main Saudi market - a listing that the country’s Capital Market Authority approved in June.

Saudia currently holds a 70% stake in SAL, while Tarabot Air Cargo Services, which is owned by Saudi transportation developer Tarabot Investment and Development, holds 30%. Proportionately, the two owners will float the additional shares in the Tadāwul stock exchange listing, according to the document released on September 12, which at the current market price represent about SAR800 million riyals (USD213 million).

A timeline for the IPO sees a book-building period for institutional investors running from September 25 to October 1, the stock price will be determined on October 5, retail buyers will be able to place orders from October 11 to 13, and the final allocation of shares will be announced on October 17, according to the prospectus.

SAL became an independent entity when it was spun off from Saudia Cargo in December 2019. It provides integrated logistics services and operates in all Saudi Arabian airports, sustaining a market share of about 95% and also handling transit and export shipments.

The company posted revenue of SAR1.22 billion (USD325 million) in 2022 and a net profit of SAR362 million (USD96.5 million). For the first half of 2023, it claims to have achieved revenue growth of 15% on the previous year. As part of its plans to diversify the economy, Saudi Arabia has said it aims to become a global supply-chain hub while developing one of the biggest airports in the world in Riyadh.