Almosafer eyes Tadawul IPO within 2-3 years, Q1 revenue hits SAR 200M: CEO

Muzzammil Hussain, CEO of Almosafer Co.

Almosafer Co. plans to go public in the Saudi Exchange (Tadawul) within the next two to three years after concluding talks with the Public Investment Fund, CEO Muzzammil Hussain told Argaam.
 

The company generated revenues of about SAR 200 million, up 21% year-on-year in the first quarter of 2024, as it recorded reservations worth about SAR 1.6 billion, he added, on the sidelines of Future Aviation Forum.

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The CEO also stated that earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to SAR 5 million, adding that the company reached the break-even point during the first quarter of last year.
 

Almosafer witnessed a robust start to the year in all segments, especially in the individual travel, which witnessed a growth of 24%, representing about 70% of the total value of reservations, said Hussain.
 

He stated that Almosafer has expanded into Qatar, Bahrain and the UAE, and is one of the largest travel brands for individuals in Saudi Arabia and Kuwait, adding that it is difficult to determine the size of the market share due to the large number of small companies specialized in the tourism sector.
 

As for competition in the sector, the CEO said that Almosafer focuses on serving all customer segments in the Saudi market, including foreign tourism, domestic tourism, and inbound foreign tourism to the Kingdom, and uses technology, data, and the size of its operations to meet the needs of each segment.
 

He also added that there are specific competitors in certain sectors, such as the individual travel or the business travel segment, but there is no competitor in all segments.
 

"There is a very strong demand for the summer season, as travel bookings for domestic tourism witnessed a growth of 29% during the period from January to April," Hussain said.
 

He added that there was strong performance in all business sectors, especially Hajj and Umrah, despite some challenges in the government travel sector during the first quarter, but other than that, the company’s performance is strong, with expectations to achieve record results in Q2 and Q3.
 

The peak of individual travel begins before the Hajj season and until the summer vacation, which is usually from the end of June to August, said the CEO, adding that the season started early this year, which is considered positive as it increases travel movement, but the summer vacation will continue until the third quarter as well.