Cargo firm SAL Saudi Logistics Services jumped as much as 30% on its Riyadh trading debut after raising $678 million in the kingdom’s second-largest initial public offering of the year. Shares in Saudi Arabia’s leading cargo handler opened at 116.6 riyals on Wednesday, up from the offer price of 106 riyals per share, which was at the top of the range. Shares advanced to 137.8 riyals apiece.
The IPO sold out in hours earlier this month, with investors putting in bids for 72 times the shares available to them. SAL received orders worth $48.6 billion, indicating robust appetite for listings in the kingdom.
Why it matters
SAL Logistics was 70% owned by Saudi Arabian Airlines (Saudia) and 30% owned by Tarabot Air Cargo Services Limited. Saudia and Tarabot have now jointly offered a 30% stake in SAL Logistics, comprising 24 million ordinary shares. Meanwhile, oil and gas driller ADES Holding in September raised $1.2 billion from its initial public offering in the biggest deal this year. The Kingdom is having a bullish IPO run this year.