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Saudi Ground Services ... the largest airport ground
handler in the kingdom.

Clifford Chance advises SGS on IPO, listing

LONDON, June 25, 2015

UK-based Clifford Chance, a multinational law firm, advised Saudi Ground Services (SGS), the largest airport ground handler in Saudi Arabia, on its recent initial public offering (IPO) and listing on the Saudi Stock Exchange.

The IPO was undertaken through the sale of 30 per cent of the share capital of SGS to potential investors. SGS allocated 33.84 million shares to institutional investors and 22.56 million shares to retail investors at a price of SR50 ($13.3) per share. The IPO was considerably oversubscribed and raised SR2.82 billion (c. $752 million).

SGS is the only ground handling services provider that operates across all the airports in Saudi Arabia. SGS was formed as part of the wider privatisation programme of Saudia, which is the national carrier of Saudi Arabia, whereby specific businesses and assets were transferred to new entities to operate that line of business including the catering, ground handling and cargo businesses.

This deal took over two and a half years to complete and involved the Clifford Chance team advising SGS on various corporate aspects in order for the company to achieve IPO readiness including converting the company from a limited liability company to a joint stock company, increasing the company's capital to SR1.88 billion, advising the company in relation to a long-term exclusive ground handling agreement with Saudia and FlyNas, and documenting various other complex arrangements between Saudia and SGS.

Commenting on the deal, lead partner at Clifford Chance Mike Taylor said: "We were delighted to have worked with SGS on this important transaction. Given the strength and depth of our Saudi practice, together with our experience advising on the most innovative and high-profile ECM and corporate finance transactions in Saudi and the wider GCC, Clifford Chance was very well placed to provide SGS with seamless advice on local Saudi law but with an international perspective."

The Clifford Chance team has advised on numerous high-profile Saudi ECM transactions including AXA Co-Operative Insurance Company's SR250 million rights issue, the Dallah Healthcare Holding IPO, Zain KSA’s capital reduction and $1.6 billion rights issue and the Saudi Airlines Catering Company IPO.

In 2015, Clifford Chance celebrates 40 years of operations in the Middle East since opening its first office in Sharjah in 1975. Over the past four decades the Firm has expanded from a single office to having a strong presence in Abu Dhabi, Dubai, Doha and Riyadh with more than 120 permanently based lawyers in the region who are fully integrated into the Firm’s international network of 36 offices in 26 countries. – TradeArabia News Service




Tags: IPO | law firm | Clifford Chance |

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