Saudi Telecom's tech business raises US$966m from IPO

Saudi Telecom's tech business raises US$966m from IPO

Saudi Telecom Company (STC) has completed the initial public offering (IPO) of Arabian Internet and Communications Services Co, which trades as Solutions by stc.

According to a press release from the leading provider of telecommunications services in the Kingdom of Saudi Arabia, it has set the final offer price at 151 riyals ($40.3) a share. At that price, the sale will be valued at SR3.624 billion ($966.4 million).

The Saudi Telecoms Company unit is offering 20 percent of its share capital, or 24 million shares out of 120 million.

Final allocations of offer shares, as well as the refund of excess subscription amounts, will be based on the prospectus, the company said in a Tadawul (Saudi Stock Exchange) filing.

The IPO order book was 130 times oversubscribed during the book-building process, the statement said. Solutions by stc had earlier announced plans to sell 24 million shares at an indicative price of 136 to 151 riyals per share.

HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, and SNB Capital Company acted as joint financial advisers.

Group CEO Omer Abdullah Alnomany has said: "This announcement marks an important milestone in solutions by stc’s journey. Our consistent growth, strong profitability, operational expertise, and market-leading capabilities have allowed us to maintain our position as the leading digital enabler for Saudi Arabia.”

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