Logo of SAL Saudi Logistics Services Co.
Individual investors will start today, Oct. 11, subscribing to 2.4 million shares of SAL Saudi Logistics Services Co. at SAR 106 each, as set by the book-building process.
The retail offering will run for three days, until Oct. 13.
In June, the Capital Market Authority (CMA) gave the green light for SAL Logistics to float 24 million shares of its post-IPO capital.
The institutional offering closed last week. It was 72x covered. The total value of orders during the book-building process reached nearly SAR 182.4 billion.
SAL Logistics' initial public offering (IPO) is the seventh share sale on the Main Market, following Morabaha Marina Financing Co. (MRNA) and Al Mawarid Manpower Co. on May 28, Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) on May 30, and First Milling Co. (First Mills) on June 6, in addition to Lumi Rental Co. on Sept. 12 and ADES International Holding Co. on Sept. 26.
Last year, 18 companies went public on the Main Market, namely, East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Elm Co., Al-Dawaa Medical Services Co., Al Masane Al Kobra Mining Co., Nahdi Medical Co., Saudi Home Loans Co., Retal Urban Development Co., Alamar Foods Co., Naqi Water Co., Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants), Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co. (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef) and Alinma Hospitality REIT Fund.
Company Highlights:
SAL Logistics was spun off from Saudi Airlines Cargo Co. (SACC) and became an independent entity in December 2019.
The company offers air and land cargo handling, airport ramp handling services, station handling services, customs inspection management, facility storage, cold chain logistics, security, and land transportation services for transit shipments and inspection services.
The firm is active in providing integrated logistics services through its presence at 18 domestic and international airports in Saudi Arabia, with its major operations at four key airports: Riyadh, Jeddah, Dammam and Madinah.
Key Locations and Other International and Domestic Airports
The company runs cargo stations at all major locations with a total warehouse space of 139,400 square meters.
It has agreements with multiple airlines for ground handling services and contracts with 160 clients, including airlines, brokers, freight agents, and logistics customers, as of Dec. 31, 2022.
SAL’s cargo handling client base is made up of mainly blue-chip airlines cargo transporting firms, including SACC. The client relationships are formalized through long and medium-term contracts with terms ranging from one to 10 years.
The company plans to invest SAR 1.5 billion to support the anticipated 10-year growth in air cargo and specialized services. It also has a self-funded medium-term capital expenditure plan of SAR 906 million, without relying on the initial public offering proceeds.
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Company Profile |
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Company |
SAL Logistics |
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Market |
Saudi Exchange (Tadawul) |
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Core Activities |
Cargo handling and logistics solutions |
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Current Capital |
SAR 800 mln |
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Number of Shares |
80 mln |
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IPO Summary |
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Issue Percentage |
30% |
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Offer Price |
SAR 106 |
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Number of Shares Offered to Individual Investors |
2.4 mln |
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Qualified Subscribers |
Retail investors |
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Minimum Subscription Limit for Retail Investors |
10 shares |
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Maximum Subscription Limit for Retail Investors |
250,000 shares |
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Retail Offering |
Oct. 11-13, 2023 |
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Final Allocation |
Oct. 17, 2023 |
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Surplus Refunds |
Oct. 24, 2023 |
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Additional Information |
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Financial Advisor, Bookrunner, Lead Manager & Underwriter |
HSBC Saudi Arabia |
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Receiving Banks |
Al Rajhi Bank, Riyad Bank, SNB, ANB, SAB |
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Company Shareholders |
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Shareholders |
Pre-IPO |
Post-IPO |
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Number of Shares (mln) |
Ownership (%) |
Number of Shares (mln) |
Ownership (%) |
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Saudia |
56 |
70 % |
39.2 |
49 % |
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Tarabot Air Cargo |
24 |
30 % |
16.8 |
21 % |
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Public |
-- |
-- |
24 |
30 % |
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Total |
80 |
100 % |
80 |
100 % |
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