Saudi Arabian Airlines has become the latest Gulf company to delay an initial public offering (IPO).
The state-owned carrier, also known as Saudia, said yesterday it expected to delay the IPO of its catering unit, which was estimated to be worth up to US$540 million.
"We have submitted our file to the Capital Market Authority and haven't been given a date yet but most likely it will be delayed," said Khalid Almolhem, Saudia's director general.
It is the second time the flotation has been delayed, but Mr Almolhem could not give a time frame for the delay or specific reasons behind it.
It is a familiar story around the region, where many flotations have been pushed back, including Topaz Energy, Kuwait Energy and the mobile operator Axiom in the past year.
"It hasn't been the best market to list anywhere in the region," said Akram Annous, a strategist at Al Mal Capital in Dubai, repeating a common concern about the lack of volumes of shares traded in most GCC and Middle East markets.
He added that for some companies in Saudi Arabia "it is so easy to borrow at such little cost rather than go through equity financing".
Even if Saudia went ahead with an IPO, trading is largely limited to local investors because foreign investors are able to invest only via "total return swaps" - an indirect way into Saudi shares.
The kingdom is attempting to become more open, however, and is in talks with several index providers, including MSCI, to become one of its components.
But Mr Annous was sceptical over the speed of change.
"Things are very slow to take off in the region, especially Saudi, and it could be another several years before this actually happens," he said.
Saudia started the process of privatisation back in 2006 by dividing the company into six units. It is waiting for regulatory approval to offer 30 per cent of its catering unit to the public.
fhalime@thenational.ae
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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pakistan Test squad
Azhar Ali (capt), Shan Masood, Abid Ali, Imam-ul-Haq, Asad Shafiq, Babar Azam, Fawad Alam, Haris Sohail, Imran Khan, Kashif Bhatti, Mohammad Rizwan (wk), Naseem Shah, Shaheen Shah Afridi, Mohammad Abbas, Yasir Shah, Usman Shinwari
How Beautiful this world is!
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The specs: 2018 Renault Megane
Price, base / as tested Dh52,900 / Dh59,200
Engine 1.6L in-line four-cylinder
Transmission Continuously variable transmission
Power 115hp @ 5,500rpm
Torque 156Nm @ 4,000rpm
Fuel economy, combined 6.6L / 100km
RESULTS
Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO
Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke
Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke
Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO
Featherweight: Abu Muslim Alikhanov (RUS) beat Atabek Abdimitalipov (KYG). Unanimous decision
Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision
Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO
Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)
Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)
Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision
Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke
Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO
Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision
Bantamweight: Ray Borg (USA) beat Jesse Arnett (CAN). Unanimous decision
Mohammed bin Zayed Majlis
RESULT
Liverpool 4 Southampton 0
Jota (2', 32')
Thiago (37')
Van Dijk (52')
Man of the match: Diogo Jota (Liverpool)
