The initial public offering (IPO) or stock market launch of Saudi Ground Services this year was a complete success. The IPO was considerably oversubscribed, with overall subscription 12.38 times the offer (Individuals 3.39 times; Mutual Funds 1.74 times, Other Institutional Investors 7.24 times of total offer).
Mohammed Safyeldin, VP finance and administration reveals that 100% of the shares stayed within the Kingdom of Saudi Arabia. The timetable of the stock market launch ran successfully. Legal advice was given by Clifford Chance, one of the world’s pre-eminent law firms.
Commenting on the deal, Clifford Chance lead partner, Mike Taylor said: “We were delighted to have worked with SGS on this important transaction. Given the strength and depth of our Saudi practice, together with our experience advising on the most innovative and high-profile ECM and corporate finance transactions in Saudi and the wider GCC, Clifford Chance was very well placed to provide SGS with seamless advice on local Saudi law but with an international perspective.”
The IPO raised SAR2.82 billion ($752 million). SGS is the largest airport ground handling services provider in Saudi Arabia and is the only ground handling services provider that operates across all the airports in Saudi Arabia.
The 56.4 million SAR50 shares were split between individual and investors: 40% to Individual investors and 60% to Institutional Investors such as mutual funds and other institutional Investors such as insurance companies and banks. SGS shares are listed in TADAWUL, the KSA stock exchange.
HSBC Holdings advised the airline on the IPO.
The unit was the second of six Saudi units, catering, cargo, maintenance, airlines and flight academy to follow a route to a stock market listing following Saudia’s privatisation decision in 2006.