DUBAI, Feb 21 (Reuters) - Saudi Arabia has invited banks to pitch for an advisory role in the sale of Saudi Postal Corp to investors, sources familiar with the matter told Reuters.
The kingdom is launching a privatisation drive as part of wider economic reforms which aim to boost efficiency and ease pressure on state finances in an era of cheap oil.
The Ministry of Communications and Information Technology did not respond to a request for comment.
Suwaiyal said that in preparation, the government was looking at a plan to create a postal holding company which would own subsidiaries operating services such as mail, courier delivery, e-commerce and financial remittances.
Authorities were studying issues such as how much of Saudi Postal would be sold and whether the stake would be offered to the public in an initial public offer of shares or to local or foreign strategic investors, he said.
The government hopes privatisation will allow the state to cease financial support for Saudi Postal - annual government subsidies to it are projected to fall to zero by 2020 from 2 billion riyals ($533 million) now - while boosting its performance, so that its revenues rise to 2.75 billion riyals in 2020 from 1.02 billion riyals in 2015.
(Editing by Andrew Torchia) ((firstname.lastname@example.org; +9715 6681 7277; Reuters Messaging: email@example.com))
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