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Saudi Industrial Services Co (SISCO), a strategic investor in ports, logistics, and water, plans to invest more than 600 million riyals (160 million) over two years, and double its revenue over the next five years.
Setting out its new corporate strategy, the investment company said it has already identified a strong pipeline of opportunities for the next 18 to 24 months.
In a statement on Saudi's Tadawul exchange, SISCO said it will turn to raising debt to fund its direct equity investments and allocate capital in ways that will balance risks and expected returns.
Commenting on the new strategy, Mohammed Al-Mudarres, CEO at SISCO said: “We are confident in our ability to drive those targets by pursuing new growth prospects primarily through selective organic investments, acquisitions and new brownfield opportunities in the ports sector.”
SISCO also proposes to scale and optimize its water portfolio, he added.
In July this year, SISCO concluded the sale of its 21.2 percent direct equity stake and 18.8 percent equity stake of other minority shareholders in its subsidiary Red Sea Gateway Terminal Ltd. to the kingdom's sovereign wealth fund, Public Investment Fund and Hong Kong-based COSCO SHIPPING Ports Ltd. through its wholly owned subsidiary, Sound Joyce Enterprises Limited, on a pro-rata basis for 556.5 million riyals.
(Writing by Brinda Darasha; editing by Seban Scaria)
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© ZAWYA 2021
