Saudi Arabia’s capital markets regulator, the Capital Market Authority, has issued a resolution approving a request by SAL Saudi Logistics to register and float 24 million shares, or 30% of its capital, the regulator announced on June 21.

A prospectus for the initial public offering (IPO) will be published “within sufficient time prior to the start of the subscription period,” it said. The approval will be valid for six months from the date of the resolution and will be cancelled if the offering and listing of the company’s shares are not completed within this period.

SAL was established in December 2019 when it was spun off from Saudia Cargo. It provides integrated logistics services and operates in all Saudi Arabian airports. It claims to handle 99% of domestic and international air freight in the country.

In December 2022, Saudi’s General Authority of Civil Aviation licensed SAL to also provide ground services at the Kingdom’s airports, allowing it to manage ground services, baggage and freight handling, passenger services, and aircraft towing.

The freight company has been planning an IPO since at least 2021 and was working with HSBC Holdings as its financial adviser at that time, according to the financial news portal Argaam. The approval is one of a slew of offerings that the capital markets regulator has announced in recent days.