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Saudia Technic CEO: We Aim for IPO before End of 2030

The company plans to triple the number of its mechanics and technicians over the next three years, in addition to expanding into new international markets. (Saudi Technic website)
The company plans to triple the number of its mechanics and technicians over the next three years, in addition to expanding into new international markets. (Saudi Technic website)
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Saudia Technic CEO: We Aim for IPO before End of 2030

The company plans to triple the number of its mechanics and technicians over the next three years, in addition to expanding into new international markets. (Saudi Technic website)
The company plans to triple the number of its mechanics and technicians over the next three years, in addition to expanding into new international markets. (Saudi Technic website)

The CEO of Saudia Technic, Fahd Cynndy, said that the company aims to offer public shares before the end of 2030.
Speaking on the sidelines of the Dubai Airshow, he noted that the company was planning an initial public offering (IPO) either in 2028 or 2029, explaining that the entity has no immediate plans to tap debt markets, Reuters reported.
“We have institutional investors that have committed a significant amount for the capability building... It covers our business plan up until the IPO target,” Cynndy said.
He added that Saudia Technic was planning a substantial expansion of its capabilities so that aircraft can be fully serviced within the Kingdom.
“We have just managed to secure worth of 5 billion riyals ($1.33 billion) to complete our maintenance repair and overhaul (MRO) village,” he was quoted by Reuters as saying, with phase one of the facility scheduled to open in August 2024.
The company plans to triple the number of its mechanics and technicians over the next three years, in addition to expanding into new international markets.
The Kingdom has witnessed a wave of IPOs in recent years, as a number of state-backed companies have listed their shares or are seeking to list as part of broader plans to deepen capital markets, develop the private sector, and attract investors.
Saudi Arabia has been massively spending on the aviation industry as it seeks to become a tourism and transportation hub, as part of far-reaching economic diversification objectives under Vision 2030.

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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.