Thursday, Jun 28, 2012
(This story was originally published Wednesday)
LONDON (Zawya Dow Jones)--Saudi Airlines Catering Co., or Saudia Catering, has raised 1.47 billion Saudi riyals ($391 million) in an initial public offering for 30% of its shares, after receiving strong demand, according to state-run Saudi Press Agency, or SPA.
The offering for 24.6 million shares at SAR54 a share was 221% covered and the number of subscribers reached 937,837, reflecting a strong appetite for the company, SPA reported Wednesday, citing Saudi Fransi Capital, the IPO's lead manager and book runner. The IPO was open for subscription from June 18 to 24.
Saudi Fransi Capital had already provisionally allocated 50% of the offered shares to institutional investors.
Saudia Catering is a unit of Saudi Arabian Airlines, or Saudia, one of the Middle East's largest carriers.
Saudia in 2006 was divided into six units: catering, cargo, maintenance, airlines, flight academy, and group handling, to be privatized individually.
The catering unit in 2008 was the first to be privatized. A consortium of private investors including Abdul Mohsen Al-Hokair Tourism and Development, Fowzan Holding and Newrest Group bought 49% of Saudia Catering.
-By Iman Dawoud, Dow Jones Newswires; +971 55 1093341; iman.dawoud@dowjones.com: Twitter: @ZDJnews
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
28-06-12 0340GMT
