Saudi Ground Services sets share allocations for June IPO

Saudi Ground Services Co. (SGS) has set its share allocations for its upcoming initial public offering (IPO) which will be held from June 3 to June 9, the airline service provider announced on Monday.

Institutional investors may subscribe to 100 percent of the shares on offer; however, this number could be reduced to 60 percent following an approval from the Capital Markets Authority (CMA). At least 90 percent of the shares will be allocated to investment funds.

Individual investors may subscribe to 40 percent of the shares, or 22.56 million.

The IPO, which is being managed by HSBC Saudi Arabia and Jadwa Investment, will offer 30 percent of the company’s total shares, or 56.4 million shares.

According to data available on Argaam, the company’s profit rose eight percent to SAR 657 million (SAR 3.49/share) last year, compared with SAR 606 million in 2013.

IPO