Following the announcement by SAL Saudi Logistics Services Company (“SAL”, “Company”), the market leading cargo handling player and growing logistics solutions business in Saudi Arabia (“KSA” or “Saudi Arabia”), on 25 September 2023G of the Offer price range, the Company along with HSBC Saudi Arabia, as sole financial advisor, announces today the successful completion of the institutional book-building process in compliance with the rules and regulations issued by the Capital Market Authority (“CMA”) and the determination of the final offer price (the “Final Offer Price”) for the Initial Public Offering (the “IPO” or the “Offering”) at SAR 106 per share, implying a market capitalization of SAR 8,480 million (USD 2,261 million[1]) at listing.

The institutional book-building process generated an order book of SAR 182.4 billion (USD 48.6 billion) and resulted in a subscription of coverage of c.72x of the total offered shares.

Faisal bin Saad Albedah, Managing Director & Chief Executive Officer of SAL, said:  

“We are honored to have witnessed such strong demand for SAL’s shares by institutional investors securing the top end of the price range, reflecting their confidence in SAL’s equity story, particularly our business, financial performance, management team, and growth prospects. We remain focused on maintaining our leading position and creating long-term value for our incoming shareholders.  

This is a proud moment for SAL, as we welcome new institutional investors into our increasingly diversified shareholder base. Over the next few weeks, we look forward to inviting retail investors to participate in our future success story as we aim to deliver impact every day and live up to our vision of being the logistics champion for a globally connected Saudi Arabia.”

Offering Details

  • The Final Offer Price for the Offering has been set at SAR 106 per share, implying a market capitalization at listing of SAR 8,480 million (USD 2,261 million).
  • The total Offering size is SAR 2,544 million (USD 678 million).
  • The Offering is comprised of 24,000,000 ordinary shares (the “Offer Shares”) representing 30% of the Company's share capital post-listing, to be sold by the current shareholders (the “Selling Shareholders”).
  • Immediately following the listing on the Main Market of the Saudi Exchange (Tadawul), the Company is expected to have a free float of 30% (24,000,000) of its total shares (80,000,000).
  • 100% of the Offer Shares have been provisionally allocated to the Participating Parties that took part in the book-building process (“Participating Parties”). This may be reduced to 21,600,000 Offer Shares (representing 90% of the total Offer Shares) depending on the level of demand by Individual Investors (as defined below). The final number of Offer Shares allocated to the Participating Parties will be clawed-back accordingly based on subscriptions from Individual Investors.
  • Saudi Arabian nationals, foreign residents in the Kingdom of Saudi Arabia and GCC nationals (“Individual Investors”) will be able to subscribe for shares in the retail offering between 11/10/2023G – 13/10/2023G (corresponding to 26/03/1445H – 28/03/1445H) at the Final Offer Price of SAR 106 per Offer Share through the appointed receiving agents which are Saudi Awwal Bank (SAB), Riyad Bank, Saudi National Bank, Al Rajhi Bank and Arab National Bank (ANB) (collectively, the “Receiving Agents”).
  • The offer to Individual Investors will be made as follows:
    • Individual Investors are required to complete a Retail Subscription Form. Individual Investors who have participated in recent initial public offerings in the Kingdom can also subscribe through the internet, telephone banking or automated teller machines ("ATMs") of any of the Receiving Agents branches that offer any or all such services to its customers, provided that the following requirements are satisfied: (i) the Individual Investor must have a bank account at a Receiving Agent which offers such services and (ii) there have been no changes in the personal information or data of the Individual Investor since such person's subscription in the last initial public offering.

[1] For the purposes of this announcement, the exchange rate applied is SAR 3.75 = USD 1.