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Saudi Arabia has asked banks to pitch for an advisory position on the privatization of the Saudi Postal Corp., Reuters reported on Tuesday, citing unnamed sources with knowledge of the matter.
No details were disclosed about the size of the potential stake and whether such stake would be sold in an initial public offering (IPO), or to local or foreign strategic investors.
In January, the kingdom’s wholly-owned postal system, sent a request for proposals to local banks, but no decision has been yet made on potential participants.
Meanwhile, the ministry of communications and information technology did not comment, the report added.
Last June, the Saudi communications minister said the postal system would likely be privatized by early 2017, as part of a broader reform program which aims to monetize the kingdom’s assets and shore up its revenue amid lower oil prices.
The privatization was aimed to help the kingdom cease financial support for Saudi Postal.
As many as 13 Saudi ministries and government agencies were said to be gearing for privatization of services, including the ministries of justice, health, telecommunications, municipal affairs, agriculture, housing, energy and education, Argaam earlier reported.
Meanwhile, the kingdom is also planning to also privatize 27 airports by mid-2018.
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