- The secondary public offering of 6.0% of stc’s share capital was successfully completed, with a total offering size of SAR 12 billion ($3.2 billion)
- The successful offering was oversubscribed by retail and institutional investors
- The structuring and execution of this secondary offering, the first of its kind in the Saudi Capital Market, will contribute to the development of the Saudi financial sector and attract new investors
- PIF will remain a majority shareholder in stc with a 64% stake in the company, and looks forward to supporting stc’s leading role in shaping the future of the Information and Communication Technology sector in Saudi Arabia
The Public Investment Fund (“PIF” or “The Fund”) and Saudi Telecom Company (“stc” or the “Company”), Saudi Arabia’s leading ICT provider whose ordinary shares are listed on the Saudi Stock Exchange, announced today the successful completion of the secondary public offering (“The Offering”).
120 million shares representing 6.0% of stc’s share capital were offered to local and international institutional investors as well as retail investors through a secondary public offering, the first of its kind in the Saudi Capital Market.
The total offering size reached SAR 12 billion ($3.2 billion), which makes it the largest equity capital markets transaction in Saudi Arabia since the IPO of Saudi Aramco, the largest secondary follow-on transaction in EMEA in the last three years, and the largest secondary follow-on transaction in Central and Eastern Europe, Middle East, and Africa in nearly 10 years.
In this occasion, Yazeed A. Al-Humied, PIF Deputy Governor, Head of MENA Investments said: “The strong interest that this Offering has generated from domestic and international investors is testament to stc’s enduring strengths and exciting prospects for the future. As its majority shareholder, we look forward to supporting stc’s leading role in shaping the future of the Information and Communication Technology sector in the Kingdom of Saudi Arabia, one of the 13 strategic sectors PIF focuses on.”
Al-Humied added: “This transaction is in line with PIF’s strategy 2021-2025, launched by HRH the Chairman of the Fund, to recycle capital by selling stakes in the companies owned by PIF, as with the secondary public offering of PIF’s shares in stc and the IPOs of ACWA Power and Saudi Tadawul Group, to reinvest the proceeds in emerging and promising sectors in the local economy. We are pleased to contribute to the development of the Saudi Capital Market through the successful structuring and execution of this secondary public offering. This is the first Secondary Fully Marketed Public Offering ever in Saudi Arabia targeting international investors and the largest in the region, which demonstrates the development of the Saudi Capital Markets.”
Eng. Olayan M. Alwetaid, stc Group CEO said: “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. 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 case 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.”
Eng. Khalid Al-Hussan, CEO of the Saudi Tadawul Group, said: “The healthy reception of PIF’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. The continuous development of the market and strong governance of 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 in the Saudi economy.”
120 million shares representing 6.0% of stc’s share capital were offered to local and international institutional investors as well as retail investors through a secondary public offering, the first of its kind in the Saudi Capital Market.
The total offering size reached SAR 12 billion ($3.2 billion), which makes it the largest equity capital markets transaction in Saudi Arabia since the IPO of Saudi Aramco, the largest secondary follow-on transaction in EMEA in the last three years, and the largest secondary follow-on transaction in Central and Eastern Europe, Middle East, and Africa in nearly 10 years.
In this occasion, Yazeed A. Al-Humied, PIF Deputy Governor, Head of MENA Investments said: “The strong interest that this Offering has generated from domestic and international investors is testament to stc’s enduring strengths and exciting prospects for the future. As its majority shareholder, we look forward to supporting stc’s leading role in shaping the future of the Information and Communication Technology sector in the Kingdom of Saudi Arabia, one of the 13 strategic sectors PIF focuses on.”
Al-Humied added: “This transaction is in line with PIF’s strategy 2021-2025, launched by HRH the Chairman of the Fund, to recycle capital by selling stakes in the companies owned by PIF, as with the secondary public offering of PIF’s shares in stc and the IPOs of ACWA Power and Saudi Tadawul Group, to reinvest the proceeds in emerging and promising sectors in the local economy. We are pleased to contribute to the development of the Saudi Capital Market through the successful structuring and execution of this secondary public offering. This is the first Secondary Fully Marketed Public Offering ever in Saudi Arabia targeting international investors and the largest in the region, which demonstrates the development of the Saudi Capital Markets.”
Eng. Olayan M. Alwetaid, stc Group CEO said: “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. 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 case 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.”
Eng. Khalid Al-Hussan, CEO of the Saudi Tadawul Group, said: “The healthy reception of PIF’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. The continuous development of the market and strong governance of 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 in the Saudi economy.”
