DUBAI, Sept 25 (Reuters) - Saudi Arabian cargo business SAL Logistics Services Co could raise as much as 2.54 billion riyals ($678 million) from its initial public offering (IPO) after the company disclosed an indicative price range on Monday.

SAL Logistics is 70% owned by Saudi Arabian Airlines Corporation (Saudia) and 30% by Tarabot Air Cargo Services. Saudia and Tarabot are jointly offering a 30% stake in SAL Logistics, comprising 24 million ordinary shares.

The price range was set at 98 riyals ($26.13) to 106 riyals per share, SAL Logistics said.

The offering is expected to total between 2.35 billion riyals and 2.54 billion riyals, implying a market capitalisation of between 7.84 billion riyals and 8.48 billion riyals.

HSBC Saudi Arabia is acting as sole financial adviser, bookrunner, global coordinator, lead manager and underwriter.

Aviation is part of a government's strategy to become a global transportation and logistics hub by 2030, with Riyadh airport as base for a new airline that would compete with regional heavyweights Emirates and Qatar Airways.

SAL is the leading market player in the kingdom, holding a market share of about 95% and providing services to 18 domestic airports. The company also handles transit and export shipments.

SAL Logistics recorded revenue of 1.22 billion riyals for 2022, with net income of 362 million riyals.

It joins a growing number of companies looking to list on the Saudi Exchange, the largest market in the region.

Oil and gas driller ADES, backed by Saudi Arabia's sovereign wealth fund, last week priced its IPO at the top of the range, implying a valuation of 15.242 billion riyals.

Shares in Saudi Arabian auto rental company Lumi jumped as much as 30% above their listing price on its market debut on Monday after raising $290 million in an initial public offering for 30% of the business.

Companies in the Middle East raised $5.3 billion in the first half of this year, the second-highest in the past 15 years, LSEG data shows.

There were 23 new stock market listings in the first half of 2023, more than any other first-half total since 2008. ($1 = 3.7511 riyals) (Reporting by Hadeel Al Sayegh Editing by Louise Heavens and David Goodman)