Saudi Ground Services to launch IPO June 3

Saudi Ground Services Company (SGS) will float 56.4 million shares, or 30 percent of its capital in an initial public offering (IPO) on Wednesday.

The company will allocate 22.56 million shares for retail investors during the first period of the IPO. Meanwhile, the remaining 60 percent of shares will be available to institutional investors and funds. 

Receiving banks include: Saudi British Bank (SABB), Saudi Investment Bank (SAIB), Bank AlJazira, Bank Albilad, Arab National Bank (ANB), Alinma Bank, National Commercial Bank (NCB), Saudi Hollandi Bank (SHB), Samba Financial Group (Samba), Banque Saudi Fransi (BSF), Riyad Bank and Al Rajhi Bank.

According to a statement obtained by Argaam, HSBC Saudi Arabia will act as the financial adviser, lead manager, and underwriter for 89 percent of the shares, or SAR 2.52 billion; while Jadwa Investment will be the lead manager for 11 percent of the shares, or SAR 300 million. 

Saudi Airlines, National Aviation Ground Support, and Al-Attar Ground Handling are prohibited from trading their stakes in SGS for a period of three years after which shares may be traded upon obtaining the Capital Market Authority’s approval.

Public offerings have been on the rise in Saudi Arabia, according to data available on Argaam.

In recent weeks, the Saudi Company for Hardware (SACO) and Middle East Paper Company (MEPCO) held their offerings in order to enlist on the $572 billion bourse ahead of its planned opening to foreign institutional investors on June 15.