Saudia says IPOs of three units coming ‘soon’

Saudi Arabian Airlines (Saudia) is planning to float three units in an initial public offering (IPO) “soon”, Director General Saleh Al Jasser said on Wednesday in a statement.

Al Jasser said talks are ongoing with the strategic partners of those companies to finalize paperwork required for the offering, without mentioning the expected dates or target units.

The carrier is also working on establishing a holding company to develop subsidiaries, enhance their operating efficiencies, and diversify and boost their revenue sources, he said, while adding that the completion of this privatization process depends largely on improving Saudia’s overall finances.

In 2012, the flagship carrier had decided to privatize and list six units on the Saudi Stock Exchange (Tadawul), with Saudi Airlines Catering Co. being the first.

In June 2015, Saudi Ground Services (SGS) was also listed and began trading on Tadawul.

As for Saudia Cargo, Al-Jasser said the company is still finalizing procedures required to float 30 percent of its capital, with the IPO expected to take place in early 2017.