JEDDAH: Saudi Arabian Airlines (Saudia) has secured regulatory approval to convert its catering unit to a joint-stock firm with a capital of SR100,767,000 ($26.9 million), a step toward its planned initial public offering. The value has been divided into 10, 076,700 shares at a share value of SR10. All shares have been sold. Saudi Arabian Airlines Catering obtained the approval from Abdullah Zainal, Minister of Trade and Industry, the ministry said in a statement posted on its website Saturday. Hassan Aqeil, Deputy Minister of Trade and Industry, said that the company supplies food and non-food services to both the public and private sectors and air sales services, and runs and operates duty free markets in the Kingdom's airports. It also runs restaurants and food supply outlets at airports. In May, Saudia said it inked a deal with the local affiliate of French investment bank Calyon to advise on the Saudia Catering IPO. The airline, which launched a gradual privatization of its units ahead of its planned IPO, also signed an agreement with US bank Morgan Stanley and NCB Capital to advise on the privatization its core aviation unit. The national carrier plans to offer 450,000,000 shares or 30 percent of its core unit this year. A consortium of private investors including Abdul Mohsen Al-Hokair Tourism and Development and the Fowzan Holding and Newrest Group bought 49 percent of Saudia Catering, while Tarabut Air Freight Services acquired 30 percent of Saudia Cargo.
