Saudi Arabia's aviation landscape is buzzing with activity as the nation's largest airline, Saudi Arabian Airlines Corp., commonly known as Saudia, and shareholder Tarabot Air Cargo Services Ltd., aim to raise up to 2.54 billion riyals ($678 million) through the initial public offering (IPO) of SAL Saudi Logistics Services Co., a prominent cargo firm. This development marks the revival of Saudi Arabia's listing market, signalling a renewed investor interest, according to a report by Bloomberg.

As per a statement released on Monday, it was revealed that Saudia and Tarabot are jointly offering 24 million shares, equivalent to a 30 per cent stake, at a price range of 98 to 106 riyals per share, valuing SAL at a potential 8.48 billion riyals.

The bookbuilding phase for institutional investors is set to continue until October 1, while retail investors will have an opportunity to place orders from October 11 to October 13. Presently, Saudia holds a 70 per cent ownership stake in SAL, while Tarabot holds the remaining 30 per cent.

The timing of SAL's IPO coincided with the establishment of Lumi Rental Co., a vehicle rental business, and the hugely profitable $1.2 billion IPO of ADES Holding Co., an oil driller supported by Saudi Arabia's sovereign wealth fund, which generated orders totalling $76.5 billion. This increase in activity in the Saudi Arabian listing market comes after a comparatively quiet first half of the year, which was partly caused by a downturn in the nation's stock market.

The recent rally in crude oil prices and a 10 per cent increase in the Tadawul Index from its March low have contributed to the renewed confidence in the Saudi Arabian listing market. Saudi Arabia's ambitious plans to become a global supply chain hub and develop one of the world's largest airports in Riyadh further fuel investor optimism.

SAL holds a dominant position in Saudi Arabia's cargo handling sector, boasting a market share of approximately 95 per cent. The company specialises in handling cargo, transit, and export shipments. In 2022, SAL reported revenue of 1.22 billion riyals ($325 million) and a net income of 362 million riyals. The company continued its strong performance in the first half of 2023, achieving a 15 per cent year-on-year revenue growth.

HSBC Holdings Plc's Saudi unit has been appointed as the sole financial advisor, bookrunner, global coordinator, lead manager, and underwriter for the IPO, underscoring the significance of this offering in Saudi Arabia's evolving economic landscape.

(With inputs from Bloomberg)

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Saudi Arabia's aviation landscape is buzzing with activity as the nation's largest airline, Saudi Arabian Airlines Corp., commonly known as Saudia, and shareholder Tarabot Air Cargo Services Ltd.

Saudi Arabia's aviation landscape is buzzing with activity as the nation's largest airline, Saudi Arabian Airlines Corp., commonly known as Saudia, and shareholder Tarabot Air Cargo Services Ltd., aim to raise up to 2.54 billion riyals ($678 million) through the initial public offering (IPO) of SAL Saudi Logistics Services Co., a prominent cargo firm. This development marks the revival of Saudi Arabia's listing market, signalling a renewed investor interest, according to a report by Bloomberg. As per a statement released on Monday, it was revealed that Saudia and Tarabot are jointly offering 24 million shares, equivalent to a 30 per cent stake, at a price range of 98 to 106 riyals per share, valuing SAL at a potential 8.48 billion riyals. The bookbuilding phase for institutional investors is set to continue until October 1, while retail investors will have an opportunity to place orders from October 11 to October 13. Presently, Saudia holds a 70 per cent ownership stake in SAL, while Tarabot holds the remaining 30 per cent. The timing of SAL's IPO coincided with the establishment of Lumi Rental Co., a vehicle rental business, and the hugely profitable $1.2 billion IPO of ADES Holding Co., an oil driller supported by Saudi Arabia's sovereign wealth fund, which generated orders totalling $76.5 billion. This increase in activity in the Saudi Arabian listing market comes after a comparatively quiet first half of the year, which was partly caused by a downturn in the nation's stock market. The recent rally in crude oil prices and a 10 per cent increase in the Tadawul Index from its March low have contributed to the renewed confidence in the Saudi Arabian listing market. Saudi Arabia's ambitious plans to become a global supply chain hub and develop one of the world's largest airports in Riyadh further fuel investor optimism. SAL holds a dominant position in Saudi Arabia's cargo handling sector, boasting a market share of approximately 95 per cent. The company specialises in handling cargo, transit, and export shipments. In 2022, SAL reported revenue of 1.22 billion riyals ($325 million) and a net income of 362 million riyals. The company continued its strong performance in the first half of 2023, achieving a 15 per cent year-on-year revenue growth. HSBC Holdings Plc's Saudi unit has been appointed as the sole financial advisor, bookrunner, global coordinator, lead manager, and underwriter for the IPO, underscoring the significance of this offering in Saudi Arabia's evolving economic landscape. (With inputs from Bloomberg) WATCH WION LIVE HERE

Saudi Arabia's SAL Cargo Firm targets $678 million in landmark IPO with Saudia Airlines

Saudi Arabia's flyadeal will not proceed with a provisional order for 30 Boeing 737 MAX jets, the U.S. planemaker said on Sunday after the airline announced it would operate an all Airbus A320 fleet.

Flyadeal began reconsidering a commitment to order the Boeing jets after two MAX aircraft crashed in Ethiopia in March and Indonesia last October.

"We understand that flyadeal will not finalize its commitment to the 737 MAX at this time given the airline’s schedule requirements," a Boeing spokesperson said.

The provisional order, which included additional purchasing options for 20 MAX jets, was worth $5.9 billion at list prices.

The budget airline will take delivery from 2021 of 30 Airbus A320neo aircraft ordered by its parent, state-owned Saudi Arabian Airlines, at the Paris Air Show in June, it said in its statement.

"This order will result in flyadeal operating an all- Airbus A320 fleet in the future," it added.

The two 737 MAX crashes killed a total of 346 people, triggered the global grounding of the aircraft and wiped billions off Boeing's market value. Regulators must approve changes and new pilot training before the jets can fly again.

Saudi Arabia's flyadeal will not proceed with a provisional order for 30 Boeing 737 MAX jets, the U.S. planemaker said on Sunday after the airline announced it would operate an all Airbus A320 fleet.

Saudi Arabia's flyadeal will not proceed with a provisional order for 30 Boeing 737 MAX jets, the U.S. planemaker said on Sunday after the airline announced it would operate an all Airbus A320 fleet. Flyadeal began reconsidering a commitment to order the Boeing jets after two MAX aircraft crashed in Ethiopia in March and Indonesia last October. "We understand that flyadeal will not finalize its commitment to the 737 MAX at this time given the airline’s schedule requirements," a Boeing spokesperson said. The provisional order, which included additional purchasing options for 20 MAX jets, was worth $5.9 billion at list prices. The budget airline will take delivery from 2021 of 30 Airbus A320neo aircraft ordered by its parent, state-owned Saudi Arabian Airlines, at the Paris Air Show in June, it said in its statement. "This order will result in flyadeal operating an all- Airbus A320 fleet in the future," it added. The two 737 MAX crashes killed a total of 346 people, triggered the global grounding of the aircraft and wiped billions off Boeing's market value. Regulators must approve changes and new pilot training before the jets can fly again.

Saudi airline flyadeal picks Airbus jets over grounded Boeing MAX

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Saudi Arabia's SAL Cargo Firm targets $678 million in landmark IPO with Saudia Airlines

Saudi airline flyadeal picks Airbus jets over grounded Boeing MAX