Sunday, May 27, 2012
RIYADH (Zawya Dow Jones)--Saudi Arabia's Capital Markets Authority, or CMA, said Sunday it has approved the long-awaited initial public offering of Saudi Airlines Catering Co.
The firm, known as Saudia Catering, plans to offer 24.6 million shares, or 30% of the its total outstanding shares, from June 18 until June 24, the CMA said in a statement posted on the Saudi bourse website. A portion of the offered shares will be allocated to institutional investors, it added.
Saudia Catering is a unit of Saudi Arabian Airlines, or Saudia, one of the Middle East's largest carriers. The IPO, which has been repeatedly postponed since 2010, is part of the carrier's gradual privatization plan.
In 2006, Saudia was divided into six units, catering, cargo, maintenance, airlines, flight academy, and group handling to be privatized individually. In a 2008 private placement, catering became the first unit to undergo privatization.
Saudi Airlines had already secured regulatory approval to convert Saudia Catering, to a joint-stock firm with a capital of 100.8 million Saudi riyals ($26.9 million).
In 2010, Saudia said it signed a deal with the local affiliate of French investment bank Calyon to advise on the IPO.
The airline has also signed an agreement with U.S. bank Morgan Stanley and NCB Capital to advise on the privatization of its core aviation unit.
A consortium of private investors including Abdul Mohsen Al-Hokair Tourism and Development and the Fowzan Holding and Newrest Group bought 49% of Saudia Catering, while Tarabut Air Freight Services acquired 30% of Saudia Cargo.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
27-05-12 1350GMT
