SGS begins IPO with 22.56 mln shares allocated to retail investors

03/06/2015 Argaam - Exclusive

The first phase of Saudi Ground Services Co.’s (SGS) initial public offering (IPO) starts on Wednesday with 22.56 million shares on offer to retail investors at a price of SAR 50 per share.

 

The IPO is the third to take place this year in Saudi Arabia and will offer 56.4 million shares, or 30 percent in total of the company’s capital.

 

The offering will run until June 9, with 60 percent of shares allocated to institutional investors at a later date.

 

During the book building process, shares allocated for institutions and mutual funds were nine times oversubscribed.

 

Argaam reported last month on the Capital Market Authority’s (CMA) approval of the company’s request to float its shares.

 

About SGS

 

In 2008, SGS was established as a limited liability company in Jeddah with SAR 500,000 in capital.  It is 100 percent-owned by Saudi Arabian Airlines (Saudia).

 

In 2010, SGS surfaced after the merging of Saudi Arabian Airline Ground Services (SAAGS), National Handling Services (NHS), and Attar Ground Handling (Attar Travel Co).

 

Therefore, SGS raised its capital in 2010 to SAR 886.9 million from SAR 500,000 through issuing shares to partners. It converted into a public joint stock company in May 2014, and its capital was increased to SAR 1.880 billion, divided into 188 million shares.

 

The company provides ground handling services across the kingdom’s airports, including travel services, passenger services and tickets, as well as baggage check and handling.

 

In addition, it provides ramp and support services in airports, airplane cleaning and other technical maintenance, as well as traffic monitoring, arrivals, flight information, and load monitoring.

 

Company Profile

Saudi Ground Services Company (SGS)

Company

Saudi Stock Exchange (Tadawul)

Stock market

Handling services at the kingdom’s airports

Company’s core business

Active

Company’s status

SAR 1880 mln

Company’s Capital

 

IPO Details

30%

IPO percentage

22.56 mln

Number of IPO shares

SAR 50

 Issuance price

SAR 1.128 mln

Size of issue

Saudi citizens

Subscribers

June 3 to 9, 2015

IPO date

10 shares

IPO minimum

250 thousand shares

IPO maximum

June 16, 2015

Allocation

June 16, 2015

Surplus payment

 

Other Details

HSBC

Financial advisor, lead manager, and lead underwriter

Jadwa Investment

Co-manager

SAMBA, Al-Rajhi, NCB, RIBL, SABB,  Saudi Fransi, Al-Bilad, Alinma, ANB, Saudi Investment, BJAZ, Saudi Hollandi

Receiving banks

 

Major Shareholders

Percentage

Shares (mln)

Owners

52.5%

98.70

Saudi Arabian Airlines

14.7%

27.64

National Aviation Ground Support (NAGS)

2.8%

5.26

Attar Ground Services Co.

30%

56.40

Public

100%

188.00

Total

 

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