SAL shares soar 30% on its first day of trading

SAL Saudi Logistics Services saw its shares rise 30% in their first day of trading on the Saudi Tadawul Exchange,Reuters reports. The shares jumped USD 36.73 in early trading, surpassing the initial offer price of USD 28.3. This follows the company raising USD 678 mn in its initial public offering, seeing full subscription on the first day of the book building process for institutional investors amid high demand.

REMEMBER- Saudia Arabian Airlines and Tarabot Air Cargo services jointly listed a 30% stake in their subsidiary SAL on Tadawul, with both shareholders offering 24 mn shares.

Background: SAL has been planning an IPO since at least 2021 where it had appointed HSBC Holdings as financial advisor at the time. The company got the greenlight to list the 30% stake in Tadawul from Saudi Arabia’s Capital Market Authority back in June.

Advisors: HSBC Saudi Arabia was tapped as the sole bookrunner, underwriter, financial advisor, global coordinator and lead manager for the IPO.