Masar Logistics IPO covered 5.4 times as retail demand climbs
Khalil
The Riyadh freight company priced its shares at the top of the range. Here is what drew investors, and what to watch after listing.
Masar Logistics closed its initial public offering this week with the retail tranche covered 5.4 times, according to the lead manager. The company priced its shares at the top of the indicated range.
Why investors queued
Masar runs bonded warehouses near Riyadh's dry port and a fleet that serves e-commerce sellers across the Kingdom. Revenue grew for four years in a row, and the company says two thirds of it now comes from long-term contracts.
What the money is for
Management plans to spend most of the proceeds on a cold-storage hub in the Eastern Province and on electric delivery vans for last-mile routes in Jeddah.
What to watch
Analysts we spoke to point to fuel costs and the pace of new warehouse supply as the two risks. The first quarterly results after listing will show whether margins hold as the company grows.