SGS updates legal info in supplementary prospectus, says IPO ongoing

Saudi Ground Services (SGS) issued a supplementary prospectus to update legal information relevant to claims filed against the company as it begins its initial public offering (IPO) today, according to a statement obtained by Argaam.

The new clarifications were not included in the prospectus issued on May 6. The offering will start today and will continue till June 9.

A total of 12 claims were filed against the company. Based on preliminary judgments, SGS should pay SAR 25.1 million in compensation to employees in 11 labor claims. As a result, annual employee expenses are expected to increase by nearly SAR 3.8 million.

Another SAR 500,000 is claimed in ten other lawsuits.

Meanwhile, the ground handling services provider filed actions against Bahrain Air and Hellenic Imperial Airways claiming SAR 3.9 million and SAR 1.6 million, respectively.

The board stressed that SGS is not a party to any ongoing or expected claims that might weigh negatively on the company’s financial position.

The supplementary prospectus was issued in compliance with regulatory requirements after consultation with the company advisers.

Argaam reported earlier this month on the company’s plan to sell 30 percent of its capital in a public offering, or 56.4 million shares.

SGS IPO