Saudi Arabian Airlines to sell 30% of its ground-handling unit in an IPO

Saudi Arabian Airlines plans to sell 30% of its ground-handling unit valued at SAR 2 billion in an IPO within weeks, Saudi Arabian Airlines’ Chief Financial Officer Muhammad Albakri said.

The listing of 30% of the cargo unit is planned for next year, while the 30% listing of maintenance unit is set to be floated in 2017 raising at least SAR 10bn, Al Bakri said.

The kingdom decided in 2006 to privatize six units of its national carrier. Saudi Airlines Catering, the first such business to be sold publicly, raised SAR 1.3 billion after the sale of a 30 percent stake in 2012.

According to informed sources disclosed to “Bloomberg”; ground-handling services of Saudi Airlines have appointed “HSBC Holdings Plc” as IPO advisor.