Public Warehousing eyes strong growth in 2018, Tadawul listing: CEO

The Public Warehousing Co., which builds and manages warehouses, is looking to achieve strong growth rates in 2018, as its projects pipeline gets implemented, the company’s chairman, Mansour Abdulaziz Al Subaie, told Argaam Wednesday in an exclusive interview.

The company, which has developed more than 300,000 square meters of logistic and warehousing spaces across the Kingdom, is looking to develop over 800,000 sqm more.

Al Subaie said that listing the company’s shares on the Nomu Parallel Market will help attract new investments to grow its existing business and finance future expansions. In addition, the company aims to list on Tadawul over the next couple of years.

Q: Can you give us an insight into the company’s profile?

A: The company was established in 1989 as Al-Banjar for Trading and Contracting Co. It was converted into a limited liability company in June 2006 and had rebranded to Public Warehousing Co. in January 2017. It builds and manages warehouses close to main ports, airports and highways.

Q: What about the company’s existing projects with details about costs and revenues?

A: The company has developed more than 300,000 square meters (sqm) of logistic and warehousing spaces in Dammam, Riyadh and Dhahran. It will also develop over 800,000 sqm in King Abdullah Economic City (KAEC), the second industrial city in Dammam and Jeddah, Sohar Port in Oman and Dammam’s King Fahd International Airport.

The projects come as part of the company’s strategy to provide suitable infrastructure services for the logistics sector, being the main contributor to all commercial and industrial activities.

Q: How can you evaluate the company’s financial performance?

A:  The company generated a profit of SAR 18.6 million in 2016, a 30 percent increase year-on-year. We are expecting strong growth rates next year, backed by planned projects, in addition to the management’s continuous focus on the company’s global classification in logistics services field, as part of the Saudi Vision 2030.

Q: What are the major challenges to the company’s warehousing business?

A: The major challenges are the current economic environment in the Kingdom. Accordingly, the company has been looking for potential investment opportunities to enhance its local and regional presence. We are also looking at geographical expansions to meet growing demand for these services across the region and diversify its customer base.

Q: What is the reason behind the Nomu listing?

A: Public Warehousing is aiming to attract new capital investments so as to grow its existing business and finance expansion. This will help us strengthen out position as a leading infrastructure and logistics services provider.

The company also aims to list its shares on the Saudi Stock Exchange (Tadawul) within the next couple of years.

Q: What are your expectations for investor response to the IPO?

A: We expect strong investor turnout for the offering, as the logistics sector ranks among the Kingdom’s promising markets. In addition, the Saudi economy is still solid amid a decline in the ratio of public debt to gross domestic product, when compared to other countries worldwide.