STC 2ndary IPO, successfully, Completed

The Public Investment Fund (PIF) or the Selling Shareholder and the Saudi Telecom Company stc, the Saudi market leading ICT provider, whose ordinary shares are listed on Tadawul, the Saudi Stock Exchange, announced the successful completion of its secondary public offering.

As much as 120 million shares representing 6.0% of stc’s total share capital were sold to local as well as international institutions retail investors by the way of a secondary public offering, the first of its kind in the Saudi capital market.

The total offering volume worth SR 12 billion, which makes it the largest equity capital market transaction, in the Kingdom, since the IPO of Saudi Aramco, the largest secondary follow-on transaction, in the Middle East and North Africa (MENA) in the last three years, and the largest secondary follow-on transaction in CEEMEA, in nearly ten years.

“The strong interest that this offering has generated from domestic and international investors is testament to stc’s enduring strength and exciting prospects for the future, Yazeed Al-Humied, PIF Deputy Governor, HeAad of MENA Investments commented, adding:  A its majority stockholder, we look forward to stc continuing to play a leading role, in shaping the future of the Information and Communication Technology landscape, in the Kingdom of Saudi Arabia, as its among the 13 prominent strategic sectors, the Fund focuses on.”

“This transaction is in line with PIF’s strategy 2021-2025, launched by HRH Crown Prince, the Chairman of the Fund, to recycle capital by selling stakes in the companies owned by the Fund, as with the secondary public offering of the Fund’s shares in stc and the IPOs of ACWA Power and Saudi Tadawul Group, to reinvest the proceeds in the Kingdom’s emerging sectors, he elaborated.

We are pleased to contribute to the development of the Saudi capital market through the elaborate and successful structuring and execution of this secondary public offering, which is the first Secondary fully marketed in IPO ever in the Kingdom of Saudi Arabia targeting international investors and the largest in the region, demonstrating the advancement of Saudi capital markets and its regulation.”

“We are extremely pleased to see the strong interest in the offering from domestic and international investors. I believe this is an endorsement of stc’s achievements as a leading ICT provider and one of the largest telecom players, in the MENA region, as well for our strategy going forward, Eng. Olayan Alwetaid, stc Group CEO remarked, explaining that:  I have no doubt that the increase in the company’s free float percentage to 29.84% will further enhance the company’s international investment portfolio and help make its shares accessible to a wider range of investors and improve trading liquidity.

We welcome our new investors and look forward to sharing the company’s success with them,” he concluded.

“The healthy reception of the Public Investment Fund’s secondary offering highlights the maturity of the Saudi capital market, emphasising its depth, resilience and strength in response to positive regulatory and economic policies, Eng. Khalid Al-Hussan, CEO of the Saudi Tadawul Group indicated, stating that: The increasing complexity of the market and strong governance of the Saudi exchange, Edaa, and Muqassa, have created a welcoming environment that is able to support deals such as this.

As of now, this is the largest equity capital market transaction in the Kingdom, since Aramco IPO, and it bodes well for the future as we seek to capitalise on the growing momentum, building up, in the Saudi economy.”