Saudi Arabian Airlines (Saudia) is finalizing procedures required to float 30 percent of its cargo’s unit capital in an initial public offering (IPO) on Tadawul, Gulf News reported Wednesday, citing director-general Saleh Al Jasser.
Saudia Cargo’s share float could take place in early 2017, he added.
The listing comes as part of a five-year strategy to turn Saudia to profit by 2020.
“The program we are going through, the restructuring program, will help... turn that company into profitability and ready for listing,” Al Jasser told reporters in Dubai at the Arabian Travel Market.
The flagship carrier aims to enhance its fleet to 200 aircraft and fly 45 million passengers annually by 2020, up from around 120 aircraft and almost 30 million passengers in 2015.
Saudi is also planning to complete sukuk issue worth SAR 5 billion by mid-2016 to fund its fleet expansion, Al Jasser added.
In 2006, the airline floated shares of its catering and ground services affiliates, Saudi Airlines Catering Co. and Saudi Ground Services Co. on the Saudi bourse.
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