Al-Tayyar Travel Group plans to raise up to SR1.48 billion ($395 million) in an initial public offering in October, making it the Middle East's first listed travel company, its chairman said on Monday. Nasser Al-Tayyar said the company, which is Saudi Arabia's main industry player, wants to use the cash to help fund a three-year investment plan worth SR2 billion that will include sector-related acquisitions mainly in the Middle East. “We want to become a fully-fledged tour operator like major global players such as TUI and Thomas Cook,” he told Reuters in an interview. “We want to buy car rental companies in Egypt and Sudan, we are investing in airline firms in Yemen and Egypt, we want to buy property, either for equipped apartments or hotels in the region.” The company plans to sell at least 20 million shares, representing 30 percent of its capital, at between 64 and 74 riyals per share, he said, noting that a capital increase would take place prior to the listing. “All of this is subject to regulatory approval,” he said. Al-Tayyar made a net profit of 174 million riyals in 2007 up 24 percent from the previous year on sales of SR2.6 billion, an increase of 15 percent from 2006, he said. “Our earnings per share stood at SR11.63 in 2007 up from SR9.33 in 2006,” he said. The company raised its paid-up capital to SR450 million this year up from SR100 million by incorporating reserves. Its first-quarter profit reached SR63.2 million, up 12 percent from the same period in 2007, said Nasser who owns 60 percent of the firm's capital. The remainder is held by Saudi businessmen. Tayyar Travel Group has a 30 percent stake in new Egyptian carrier Nile Air, which agreed in November to buy nine Airbus A321 aircraft. “We want to start operations in the first quarter of 2009, and we will lease three aircraft of the same profile, pending the delivery in 2012 of the nine planes,” Tayyar said. The travel firm paid $25 million earlier this year for a 20 percent stake in a new Yemeni domestic carrier called Al-Saida, which will serve domestic destinations, Nasser said. Tayyar also recently bought a 30 percent stake in Kuwaiti Alshamel International travel agency for SR84 million. “This is a profitable company that will boost our profit and create interesting development opportunities,” he said. The company also wants to tap a burgeoning interest by foreign tourists in the Kingdom. “We want to enter a partnership with a global player to tap this promising niche,” Tayyar said. Saudi authorities began issuing tourist visas last year for the first time in its history as part of government efforts to create jobs and diversify the oil-dependent economy. “We are still suffering an awful lot of bad press about our country and this is hampering our tourism potential,” Nasser said.
