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Tue 21 Oct 2014 11:47 AM

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Saudia hopes to raise $2.7bn with 3 IPOs

Ground-handling, cargo and maintenance are the airline company’s next units to be sold as it moves towards privatisation

Saudia hopes to raise $2.7bn with 3 IPOs
Saudi Arabian Airlines (Saudia)

Saudi Arabian Airlines (Saudia) plans to raise at least SAR10 billion ($2.7bn) through the sale of shares in three more of its divisions as it moves closer towards full privatisation, it has been reported.

The airline’s ground-handling, cargo and maintenance units are the next planned to be sold.

An initial public offering of the ground-handling unit, valued at SAR2 billion, would take place “in weeks,” Saudi Arabian Airlines’ chief financial officer Muhammad Albakri said during a visit to Dubai. The sale of shares in the cargo unit was planned for next year, while the maintenance section of the business would IPO in 2017, he was quoted as saying.

Saudia will sell 30 percent of both at “at least” double the value of the ground-handling division, he said.

Saudi Airlines Catering was the national airline’s first business to be sold publicly, raising $347 million after the sale of a 30 percent stake in 2012.

Other units yet to be sold are airlines and flight academy. No dates for those IPOs have been announced.

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