Saudi Arabian Airlines moves ahead with IPO

Saudi Arabian Airlines moves ahead with IPO

French investment bank unit Calyon Saudi Fransi to advise on initial public offering of airline’s catering arm.

March 22, 2010 12:15 by Ben Flanagan

Saudi Arabian Airlines (Saudia) has signed a deal with French investment bank Calyon to advise on the IPO of its catering company.

No date was specified for the IPO, but previous reports suggest that a 30 percent stake in the catering unit will be floated in the third quarter of 2010.

The deal, between Saudia and the bank’s Calyon Saudi Fransi affiliate, was part of five landmark privatization agreements announced by the airline yesterday.

Saudia also signed a deal with Samba Financial Group and BNP Paribas, aimed at financing the airline’s new fleet of aircraft.

The airline also said it would merge Saudi Airlines Ground Services Company with National Handling Services Company and Attar Ground Services Company to form a new company to provide ground services in all of the Kingdom’s airports.

The fourth accord was with Al-Ahli Capital and Morgan Stanley to privatize the core aviation unit; the fifth agreement aims at developing aircraft maintenance facilities at King Abdulaziz Airport in Jeddah