Saudi Ground Services begins trading on Tadawul

Shares of Saudi Ground Services (SGS) began trading on the Saudi Stock Exchange (Tadawul) Thursday under code 4031, marking the third listing this year after Saudi Company for Hardware (SACO) and Middle East Paper Co. (MEPCO) in May. 

The stock’s fluctuation limit will stand at 10 percent, according to a statement posted on Tadawul.

The new entry brings the number of listed firms in the transport sector to five, and the total number of stocks listed on the exchange to 171, including suspended shares.

The aviation ground service handler offered 30 percent of capital, or 56.4 million shares, in an initial public offering (IPO) earlier this month. Shares were sold at SAR 50 each, according to data available on Argaam.

SGS allocated 60 percent of the offered shares for institutional investors and 40 percent for retail investors. The IPO was 339 percent oversubscribed by individual investors who were allocated ten shares each. Remaining shares were distributed pro rata.

The kingdom’s transport sector has not seen listings since United International Transportation Co. (Budget Saudi) in 2007.  

About SGS

SGS was established in 2011 as part of a merger between three Saudi ground service companies, namely Saudi Arabian Airline Ground Services (SAAGS), National Handling Services (NHS), and Attar Ground Handling (Attar Travel Co).

In May 2014, SGS converted into a public joint stock company and raised its capital to SAR 1.880 billion, divided into 188 million shares.

The company provides ground handling services across the country’s airports, including travel services, passenger services and tickets, as well as baggage, airplane cleaning and other technical maintenance.

After the IPO, Saudi Arabian Airlines (Saudia) now owns 52.5 percent of Saudi Ground’s share capital, followed by National Aviation Ground Support Co. (NAGS) with 14.7 percent.