SAL Logistics issues prospectus for 30% IPO on Tadawul

Logo of SAL Saudi Logistics Services Co.

SAL Saudi Logistics Services Co. issued today, Sept. 12, its prospectus to float 24 million shares, representing 30% of its SAR 800 million capital, divided into 80 million shares, on the Saudi Exchange (Tadawul).

The Capital Market Authority (CMA) approved in June SAL Logistics’ request for listing.

Participating parties include those entitled to participate in the book-building process. The number of shares allocated to this category is 24 million, or 100% of the total offer shares. In case of strong retail demand, the allocation to this category would decrease to a minimum of 21.6 million, or 90% of the offering’s total shares.

Retail investors include Saudi legal persons and non-Saudi legal residents in the Kingdom, as well as GCC nationals who have a bank account with the receiving banks and have the right to open an investment account with a financial institution. A maximum of 2.4 million shares, or 10% of the total offer, will be allocated to this category.

Participating parties entitled to participate in the book-building process will register from Sept. 25-Oct. 1. However, retail investors’ subscription will run for three days from Oct. 11 to 13.

SAL Logistics was spun off from Saudi Airlines Cargo Co. (SACC) and became an independent entity in December 2019.

The firm is active in providing integrated logistics services through its presence at all airports in Saudi Arabia, with its major operations at four major airports: Riyadh, Jeddah, Dammam and Madinah. SAL Logistics handles 99% of the Kingdom's internal and external air freight.

SAL’s cargo handling client base is made up of mainly blue-chip cargo airlines, including SACC. The client relationships are formalized through long and medium-term contracts with terms ranging from one to 10 years.

The company paid a dividend of SAR 70 million for Q1 2023 and announced a SAR 70 million payout for the second quarter.

SAL paid SAR 100 million and SAR 255 million dividends in 2021 and 2022, respectively.

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