Almosafer Sets Sights on Saudi Stock Exchange Debut

Almosafer, a leading online travel platform in the region and a subsidiary of Seera Group Holding, is revving its engines for a potential initial public offering (IPO) on the Saudi Stock Exchange (Tadawul) within the next two to three years. This news comes after the company concluded discussions with the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia.

The decision to pursue an IPO indicates Almosafer's confidence in its growth trajectory. The company reported a strong start to 2024, with first-quarter revenues exceeding SAR 200 million ($53. 33 million), reflecting a 21% year-on-year increase. This positive performance follows Almosafer achieving break-even in the first quarter of 2023.

"We are set to exceed our historical performance level and exceed SAR 10 billion in booking value by 2025, in line with Seera's new strategy, " said Muzzammil Ahussain, CEO of Almosafer. The company's optimism is fueled by a robust demand for travel, particularly within the domestic Saudi market. Bookings for summer travel surged by 29% from January to April, signifying a rising interest in local tourism experiences.

Almosafer's IPO plans also come amidst the company's regional expansion. Having established itself as a dominant travel brand for individual travelers in Saudi Arabia and Kuwait, Almosafer has successfully extended its reach into Qatar, Bahrain, and the UAE. This strategic move positions the company to capitalize on the burgeoning travel market across the Arabian Gulf.

The potential IPO is a significant development not only for Almosafer but also for the Saudi Arabian travel sector. A successful listing on Tadawul could bolster investor confidence in the industry's potential and pave the way for further growth. This move aligns with Saudi Vision 2030, a strategic framework that aims to diversify the kingdom's economy and promote tourism as a key pillar of growth.

Almosafer's financial performance and strategic expansion plans suggest that the company is well-positioned for a successful IPO. With a growing travel market and a supportive regulatory environment, Almosafer's potential listing on Tadawul could be a landmark moment for the Saudi Arabian travel sector.

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