Saudi Arabia may restructure port authority for IPO

Saudi Arabia is considering plans to float shares of Saudi Ports Authority (SPA) in an initial public offering (IPO) after it restructures the state-owned entity, Middle East Economic Digest (MEED) reported, citing unnamed sources familiar with the matter.

Under the proposed measures, the port operator would be turned into an autonomous body, enabling it to independently raise funds through the debt market.

SPA is also said to have informally discussed the matter with banks, two Riyadh-based bankers told the news agency, adding that the government is very serious about reviewing and liquidating some of its assets.

The restructuring will likely be modelled after Dubai-based port operator DP World, the sources added.

The news comes as the kingdom pushes forward with a strategy to privatize some state-owned entities and assets amid public spending cuts. The government is still reviewing plans to list assets held by Saudi Aramco, the country’s state-owned oil company.

Last month, MEED reported that officials were considering plans to float some divisions of Saudi Electricity Company (SEC) after the state-owned utilities provider completes a restructuring plan later this year.