The Public Investment Fund (PIF) has completed the sale of a portion of its stake in Saudi Telecom Company (stc) through an accelerated bookbuild offering. The offering consisted of 100 million shares, representing 2% of stc’s total issued share capital, with a value of SR3.86 billion ($1.03 billion) and a final offer price of SR38.6 per share. Both local and international institutional investors participated in the offering under Regulation S of the US Securities Act of 1933. The offering was oversubscribed, making it the largest-ever accelerated bookbuild offering in Saudi Arabia and the wider MENA region. This achievement reflects the attractiveness of the Saudi capital market and investor confidence in the region.
PIF stressed the strategic importance of its continued ownership in stc, highlighting its partnerships with the company through various PIF portfolio entities. The fund reiterated its commitment to supporting stc’s leadership in shaping the future of Saudi Arabia’s ICT sector, which is a key priority sector. Even after the offering, PIF maintains a 62% stake in stc, equivalent to 3.1 billion shares. This transaction aligns with PIF’s strategy to recycle capital and invest in emerging and promising sectors of the local economy.
The successful completion of the offering underscores the positive outlook for Saudi Arabia’s capital market and the confidence of investors in the region. The oversubscription of the offering highlights the strong interest from both local and international institutional investors in stc. This milestone not only marks a significant achievement for PIF and stc but also demonstrates the growing attractiveness of Saudi Arabia as an investment destination.
The sale of part of PIF’s stake in stc through the accelerated bookbuild offering signals a strategic shift towards investing in emerging sectors of the local economy. By recycling capital, PIF can further diversify its investment portfolio and support the growth of key sectors in Saudi Arabia. This move aligns with PIF’s vision to drive economic growth and create sustainable value for the country.
With the completion of the sale, PIF continues to play a crucial role in supporting the development of the Saudi capital market and driving innovation in key sectors such as ICT. The fund’s commitment to stc and its investment in the company reflects its confidence in the potential of the Saudi telecom sector and its future growth prospects. As one of the largest institutional investors in the region, PIF’s strategic partnerships and investments contribute to the overall economic development of Saudi Arabia.
In conclusion, the completion of the sale of part of PIF’s stake in stc through an accelerated bookbuild offering represents a significant milestone for both organizations and the Saudi capital market. The success of the offering, the oversubscription, and the final offer price all reflect the strong investor interest in stc and the attractiveness of the Saudi capital market. PIF’s strategic ownership in stc, its commitment to supporting the company’s leadership in the ICT sector, and its focus on investing in emerging sectors of the local economy highlight the fund’s long-term vision for economic growth and sustainability.
