Saudi wealth fund, Singapore’s PSA consider global ports IPO

Saudi Global Ports Co., which is owned by the kingdom’s sovereign wealth fund and Singapore’s PSA International Pte, are considering an initial public offering in Riyadh, according to people familiar with the matter.

The port operator is one of the companies owned by the Public Investment Fund that’s being considered for an IPO later in 2024 or early next year, the people said, asking not to be identified as the information isn’t public. PSA is owned by Singapore state investor Temasek Holdings.

Details of the IPO such as size and timing are still being considered, the people said. Representatives for Saudi Global Ports, PIF, Temasek and PSA all declined to comment.

The PIF is in the midst of a drive to list several of its portfolio companies to raise funds to help diversify Saudi Arabia’s economy away from oil. The fund is a key pillar of Crown Prince Mohammed Bin Salman’s multi-trillion-dollar Vision 2030 plan.

The fund is also exploring an IPO of the kingdom’s largest medical procurement firm, Nupco, Bloomberg News reported in October. In 2023, it sold part of its stake in oil driller Ades Holding Co. in a $1.2 billion IPO, the kingdom’s largest that year.

Saudi Global Ports was set up in 2012 and operates container terminals in King Abdulaziz Port in Dammam on the country’s east coast, according to its website. The port is the largest container terminal on the Persian Gulf. It also manages Riyadh Dry Port.

Saudi Arabia is planning to invest $147 billion by 2030 in its transport and logistics industry as it looks to transform the kingdom into a global travel and logistics hub.

The kingdom’s IPO market has been active over the past two years, with high oil prices and increased international investor interest driving the positive sentiment even as share sales slumped globally.