Saudi Telecom hires 3 banks for IPO of subsidiary, say sources

25/10/2020 Argaam


Saudi Telecom Co (STC) hired three banks to arrange a potential initial sale of shares in its product and services development arm, STC Solutions (STCS), Reuters reported, citing three sources familiar with the matter.

The sources indicated that STC has appointed HSBC, Morgan Stanley and the investment banking arm of National Commercial Bank (NCB) to advise on the sale.

According to data compiled by Argaam, STC had previously asked banks to pitch for roles in a potential public offering of STCS.

STCS’s valuation could be around SAR 9 billion ($2.4 billion), and the IPO size could be around SAR 1.87 billion ($500 million) if the company sells 20%.

STCS was established in 2002, and provides internet services, communications projects operations, transmission and information processing in Saudi Arabia.

In December 2007, STC acquired all shares of STCS for SAR 100 million.


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