Saudi SWF PIF sells 5.01% stake in telecom giant STC for US$3.1bn

Saudi SWF PIF sells 5.01% stake in telecom giant STC for US$3.1bn

Saudi Arabia's sovereign wealth fund (SWF) Public Investment Fund (PIF) is selling a 5.01% stake in Saudi Telecom Co (STC) through a secondary share offering to raise as much as $3.1 billion.

According to a stock exchange announcement in connection with the launch of a secondary public offering in STC shares, the issue of shares comprises a fully marketed secondary offering of 100,200,000 shares in STC, representing 5.01% of STC’s shares. The shares will be offered between 100 riyals ($26.70) to 116 riyals.

The subscription period for institutional investors starts from Dec. 5 to Dec. 9. The subscription period for retail investors starts from Dec. 7 to Dec. 8. The final price will be determined on Dec. 10.

PIF said in a statement that it will maintain a majority stake of more than 50% in the company. It currently owns 70% of Saudi Telecom, which is Saudi Arabia's largest telecoms operator, and also owns subsidiaries and has stakes in companies operating in Kuwait, Bahrain, the United Arab Emirates, and Turkey.

PIF has appointed Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, and Saudi National Bank Capital to evaluate the potential transaction options. Citigroup Saudi Arabia and Credit Suisse Saudi Arabia are acting as joint book-runners, according to a bourse filing.

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