Saudi Global Ports (SGP) has selected global banking giants Goldman Sachs and HSBC Holdings to support its anticipated Initial Public Offering (IPO) on the Saudi stock exchange (Tadawul).
According to Bloomberg, sources close to the matter indicated that the IPO could happen as early as next year and may raise up to $1 billion. The IPO reflects Saudi Arabia’s push to strengthen its capital markets and diversify its economy.
SGP, which is jointly owned by the Public Investment Fund (PIF) and PSA International, has not yet finalized the exact size or timing of the offering. Representatives from PIF, Goldman Sachs, and HSBC declined to comment.
Saudi Global Ports Overview
Established in 2012, Saudi Global Ports operates container terminals at King Abdulaziz Port in Dammam, the largest container terminal on the Arabian Gulf coast. The company also manages the Riyadh Dry Port, enhancing the kingdom’s inland logistics capabilities.
Equipped with advanced infrastructure and state-of-the-art technology, SGP aims to strengthen Saudi Arabia’s position as a leading regional logistics hub, supporting Vision 2030 and boosting regional trade.
Public Investment Fund’s Strategic Role
The Public Investment Fund (PIF), valued at nearly $1 trillion, has been actively monetizing its assets to fuel economic diversification. This year alone, the PIF has raised over $13 billion through share sales in Saudi Aramco and Saudi Telecom Company (STC).
The anticipated SGP IPO aligns with Saudi Arabia’s strategy to:
- Attract foreign investments.
- Enhance private sector participation.
- Develop a more robust capital market.