Saudi Airlines Catering set for 9 July bourse listing

This story is sourced from Pro
See more Pro news »

Saudi Airlines Catering, the catering unit of flag carrier Saudia, will be listed on the kingdom's stock exchange, Tadawul, on 9 July.

The move follows a 1.33 billion riyal ($355 million) flotation for 30% of the catering unit, which ran between 18-24 June for both retail and institutional investors.

Saudia has been involved in a drawn-out privatisation process since 2006, when the Saudi Supreme Economic Council decided to split the company into six autonomous units - cargo, maintenance, catering, training, ground handling and the core airline business.

Strategic Catering purchased 49% of the catering unit in 2007, and Tarabut Air Freight Services purchased 30% of the cargo division in 2008. Subsequent plans to sell additional stakes were put on ice during the global financial crisis.

Following the latest initial public offering (IPO), Saudia will hold 35.7% of the catering unit and Strategic Catering will have a 34.3% stake.