SAL Logistics debuts today as 7th Tadawul listing in 2023

Logo of SAL Saudi Logistics Services Co.

SAL Saudi Logistics Services Co. will start trading on the Saudi Exchange (Tadawul) today, Nov. 1, at SAR 106 a share under the symbol the symbol 4263 and ISIN Code SA15T1L22JH8.

Shares will trade with ±30% daily and ±10% static price fluctuation limits in the first three days. From the fourth trading day onwards, the daily price fluctuation limits will revert to +/-10%, while the static price fluctuation limits will no longer apply.

SAL Logistics is the seventh company to debut on Tadawul this year, following Lumi Rental Co. on Sept. 25,  Al Mawarid Manpower Co.  on June 19, and Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) on June 20, Morabaha Marina Financing Co. (MRNA) on June 21 and First Milling Co. on June 22, besides the listing of Alinma Hospitality REIT Fund.

Last year, the Main Market witnessed 17 IPOs, 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.'s (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef).

SAL Logistics will bring the total number of Tadawul-listed companies to 213, excluding 18 REITs.

The company offered 24 million shares, or 30% of its capital, at SAR 106 per share. Out of the offered shares, 90% were allocated to participating parties and 10% to retail investors.

The retail tranche was 16.1% covered, while the tranche of participating parties was 72x subscribed.

A total of 833,500 retail investors submitted applications for shares worth about SAR 4.1 billion.

A minimum of two shares were allocated per individual subscriber, and the remaining shares were distributed pro rata, with an allocation factor of 1.9805%. 

Company Profile:

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

The company provides air and land freight handling services, along with other support services to airlines. The company’s main activities currently include airport apron handling, freight handling, services at stations, customs inspection management, storage in facilities, cold chains, guarding, ground transportation services for transit shipments, and inspection services.

The firm provides integrated logistics services through its presence at 18 international and local airports in Saudi Arabia, with its major operations at four key international airports of Riyadh, Jeddah, Dammam and Madinah.

The company operates stations in all major locations, with total warehouse area in shipping stations amounting 139,400 square meters.

The company has agreements with several airlines to provide ground handling services, and entered into new agreements with 160 clients (including airlines, brokers, freight forwarders and logistics clients) as of Dec. 31, 2022.

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 was committed to investing approximately SAR 1.5 billion to upgrade its operations to help meet the significant and expected growth in air freight over the next 10 years and the demand for specialized services.

It has a medium-term capital expenditure plan worth approximately SAR 906 million. The capital expenditure plan will be self-financed without using the IPO proceeds.

The company aims to expand its current operations in key locations in the Kingdom, by increasing and modernizing the cargo station areas at King Khalid International Airport, King Abdulaziz International Airport, and King Fahd International Airport, and providing additional services for current and new customers in key locations.

The company also plans to expand outside international airports in the Kingdom, by adding more services within the logistics value chain and by providing storage services in warehouses outside airports.