SAL Logistics to offer 24 mln shares on TASI

Logo of SAL Saudi Logistics Services Co. 

SAL Saudi Logistics Services Co. plans to list 30% of its share capital on the Saudi Exchange (Tadawul), HSBC Saudi Arabia, the financial advisor, institutional bookrunner, lead manager and lead underwriter of the prospective initial public offering (IPO), said.

On June 6, SAL Logistics received the go-ahead from Tadawul to proceed with its share sale. The Capital Market Authority (CMA) also approved on June 21, SAL Logistics’ request to float 24 million shares, or 30% its capital.

The final offer price will be set for all subscribers after the the book-building process.

The shares will be offered to two tranches. A total of 21.6 million shares, or 90% of the shares on offer, will be allocated for participating parties, while 2.4 million shares, or 10% of the offered shares, will be allocated for individual investors.

The company paid SAR 70 million dividends for Q1 2023 and announced SAR 70 million payouts for the second quarter.

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

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) maintained steady growth of nearly 15% between 2020 and 2022, with an EBITDA margin of 45% in 2022.

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

The company is actively investing in cargo handling and logistics solutions across the Kingdom.

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