Saudi Arabian Airlines expects to hold the delayed initial
public offering for its catering unit by the end of 2011, its director general
said on Tuesday.
The IPO, which analysts estimate to be worth between $400m and
$540m, was initially planned for the third quarter of 2010 and was postponed to
the second quarter of this year, but was again delayed, awaiting regulatory
approval.
“For the catering unit, we expect to be done with the
initial public offering during this year,” Director General Khaled Al Molhem
told Al Arabiya television.
Separately, an airline spokesman confirmed a newspaper
report that the national carrier is planning to acquire 35 new planes by 2018.
“Now we are still identifying what kind of aircraft to
use, and we are in negotiations with different companies such as Airbus ,
Boeing and other choices, and also the way to finance it, whether special order
or leasing,” said Abdullah Al Ajhar.
The Saudi national carrier started a process of
privatisation in 2006 by dividing the company into six units – catering, cargo,
maintenance, airlines, flight academy and ground handling.
It plans to privatise each of these units individually and
offer them to the public.
The catering unit was the first to be privatised through
private placement in 2008. It is now awaiting regulatory approval to offer 30
percent to the public.
French bank Credit Agricole is advising on the IPO.
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