Logo of stc
Retail subscription to 10.02 million shares of stc starts today, Dec. 7, at 11.59 pm and ends on Dec. 8 at 11.59 pm.
The number of retail investors’ shares and shares ratio will be announced after completing the book-building process and announcing the final offering price.
On Dec. 5, the Public Investment Fund (PIF) – the selling shareholder – and stc announced the launch of a secondary public offering of stc’s ordinary shares, according to data compiled by Argaam.
The offering comprises a fully marketed secondary public offering of 100.2 million shares in stc, representing 5.01% of its share capital. The price range has been set between SAR 100 and SAR 116 per share.
The company will allocate 10% of the offering to retail investors while, the remaining 90% (90.18 million shares) will be allocated to institutional investors.
Institutional investors’ subscription began on Dec. 5, and will continue until Dec. 9.
stc will not receive any proceeds from the sale of the offer shares and the offering will not result in any dilution of the shares of the other shareholders of the telco. Proceeds will go to the selling shareholder (PIF).
Company Info:
stc is the first fixed and mobile phone provider in the Kingdom, founded as a Saudi joint stock company in 1998 by a resolution to transfer the telegraph and telephone sector in the Ministry of Post, Telegraph and Telephone (telecommunications sector) with its various components and technical and administrative capabilities to the company.
Under the Saudi Cabinet's decision in 2002, the government sold 30% of the company's shares through the public offering, so that the share of Saudi citizens of a natural status is at least 20%, while the Public Pension Agency and the General Organization for Social Insurance get no more than 10% equally. The offering was completed in January 2003.
In September 2002, as the extraordinary general assembly (EGM), Saudi Cabinet decided to increase the company's capital from SAR 12 billion to SAR 15 billion.
Later in 2006 the EGM agreed to raise the company's capital from SAR 15 billion to SAR 20 billion by granting free shares for every three shares held.
stc’s current capital is SAR 20 billion divided into 2 billion shares with a nominal value of SAR 10 per share.
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Key Information of Secondary Offering |
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Issue percentage (%) |
5.01% |
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Number of offered shares |
100.2 mln shares |
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No. of shares allocated for retail subscribers |
10.02 mln shares |
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Price range per share |
SAR 100-116 |
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Percentage of shares allocated for retail subscribers (%) |
10% |
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Subscription period for retail tranche |
Dec. 7 – Dec. 8 |
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Subscription period for participating parties |
Dec. 5 – Dec. 9 |
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Date of announcing final offering price |
Dec. 10, 2021 |
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Date of shares delivery by retail, corporate subscribers |
Dec. 12, 2021 |
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Deadline for refunds for retail subscribers |
Dec. 14, 2021 |
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Offering proceeds |
stc will not receive any proceeds from the sale of the offer shares. Proceeds will go to the selling shareholder after deducting offering fees of SAR 100 mln. |
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Financial advisors |
Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, SNB Capital |
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Joint global coordinators for PIF (selling party) and the company |
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Bookrunner for corporate subscription and selling party |
Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, SNB Capital, Citigroup Saudi Arabia, Credit Suiss Saudi Arabia. |
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Lead manager |
SNB Capital |
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Receiving banks |
Al Rajhi Bank, Riyad Bank, Saudi National Bank |
PIF, the selling shareholder, owns 70% of the company’s shares.
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Major Shareholders |
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Shareholders |
Before offering |
After offering |
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Number of shares (mln) |
Stake |
Number of shares (mln) |
Stake |
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PIF |
1,400 |
70 % |
1,299.8 |
64.99 % |
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GOSI |
123.2 |
6.16 % |
123.2 |
6.16 % |
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Public |
476.8 |
23.84 % |
476.8 |
23.84 % |
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New shareholders |
-- |
-- |
100.2 |
5.01 % |
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Total |
2,000 |
100 % |
2,000 |
100 % |
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