Saudi Arabia’s Public Investment Fund (PIF) has raised SAR3.86 billion ($1.03 billion) through the sale of a 2 percent stake in Saudi telecom giant stc. The offering comprised 100 million shares, representing 2 percent of stc’s issued share capital.
Largest-ever accelerated bookbuild
Both local and international institutional investors participated in the offering, pursuant to Regulation S of the U.S. Securities Act of 1933. The offering was oversubscribed. Moreover, it represents the largest ever accelerated bookbuild offering in Saudi Arabia and the wider MENA region, demonstrating the attractiveness of the Saudi capital market and serving as a testament to investors’ confidence. Moreover, the offering contributes to increasing stc’s free float and further broadens its international institutional investor base.
With around $925 billion in assets, PIF aims to drive economic growth and diversification in Saudi Arabia.
“PIF reiterates the strategic importance of its ownership in stc and its diverse partnerships with the company through a number of PIF portfolio companies,” the statement noted. The PIF added that it looks forward to supporting stc’s leading role in shaping the future of the ICT sector in Saudi Arabia, one of its priority sectors.
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PIF now holds 62 percent of stc
Following the sale, PIF’s remaining stake in stc equates to 3.1 billion shares or 62 percent. This transaction is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy. Notably, PIF sold 6 percent of stc for $3.2 billion in 2021.
Goldman Sachs Saudi Arabia and SNB Capital were the joint global coordinators and joint bookrunners of the offering. The PIF had announced the launch of an accelerated bookbuild offering to sell part of its stake in stc on Wednesday. Besides, the Saudi Exchange will facilitate a session prior to the opening auction for only negotiated deals on stc today. The negotiated deals session will allow members related to the transaction to place negotiated deals on stc.
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