(MENAFN) Saudi Airlines Catering Company, the catering unit of Saudi Arabian Airlines (Saudia) plans to raise USD350 million by offering 30 percent of its shares in an initial public offering (IPO), Reuters reported.
The move was long awaited by investors as the company will be the first part of the Saudi flag carrier to be listed on the stock market.
The company is offering a total of 24.6 million shares, to which 50 percent was subscribed by institutional investors, while retail investors will subscribe to the other half between June 18 and 24.
The catering unit was originally aimed for a flotation in late 2010, but it ran into delays in securing regulatory approval.
Saudi Arabian Airlines began the first step into privatization six year ago by splitting into six units: catering, cargo, maintenance, airlines, flight academy and ground handling. It plans to privatize each of the units individually and offer them to the public.
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