Saudia is preparing to sell its cargo division, two years after floating 30% of its catering unit.
The Skyteam carrier entered an agreement with Samba Capital and Investment Management, the investment arm of Samba Financial Group, to act as the financial advisor and lead manager for the initial public offering of Saudi Cargo which intends to list its shares on the kingdom's stock exchange.
"Saudi Cargo’s intention to list its shares on the Saudi stock exchange is consistent with the privatization strategy adopted by the government of Saudi Arabia to restructure the Saudi Arabian Airlines subsidiaries including Saudi Cargo. This will enable Saudi Cargo to further grow its business and strengthen its competitive position at both the regional and international level,” says chairman of Saudi Cargo Khalid Bin Abdullah Al-Melhem.
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.