SGS begins IPO with 22.56 mln shares allocated to retail investors

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.