Saudi Airlines Catering Company was granted approval by the country’s capital markets regulatory body - Capital Market Authority (CMA) to sell 30 percent of its shares in an initial public offering (IPO).

The long-anticipated share-sale of the first operating unit of the national flag carrier since it was restructured as a limited liability company in 29th January 2008 and three years later was converted to a joint stock company.

The offering, which will consist of 24.6 million shares, sold to the retail public between 18th to 24 June 2012, subject to a period of book-building that determines the price prospective investors are to pay. 

Book building refers to the process of generating, capturing, and recording investor demand for shares during an IPO. The issuer appoints an investment bank to act as a major securities underwriter or bookrunner.

Saudi Airlines Catering Company was established in 1981 as the catering unit of the flag carrier Saudi Arabian Airlines - Saudia. As part of the country’s privatization drive on October 8th 2008, the late Prince Sultan Bin Abdul Aziz, Minister of Defense & Aviation at that time initiated a series of studies for the privatization of the airline. 

Supreme Economic Council, the government body responsible for privatization program gave the go ahead on the 14th March 2006, to privatize the national flag carrier Saudia and its business units, initially commencing with the catering and sky sales units. 

While on March 6, 2010 Saudia signed letters of intent with Al-Ahli Capital and Morgan Stanley to become financial consultants for the privatization of the core airline unit.

With the cargo, maintenance, private aviation, flight academy and ground handling operating entities to follow.

Saudi Fransi Capital (SFC) the Saudi affiliate of the French Credit Agricole has been appointed as financial advisors, lead manager and bookrunner for the Saudi Airlines Catering Company IPO.  Along with Saudi Hollandi Capital of Saudi Hollandi Bank, the oldest financial in Saudi Arabia, and SFC, have been appointed as underwriters for the same IPO 


Saudi Airlines Catering Company Main Prospectus   HERE