Saudi Solutions by STC IPO final price set at $40 per share

IPO order book was 130X oversubscribed generating over $125bln

  
Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26,2008.

Image used for illustrative purpose. A trader monitors stocks at a Saudi Bank in Dammam October 26,2008.

REUTERS/Stringer

Saudi telecom services provider Arabian Internet and Communications Services Co., or Solutions by STC, has set the final offer price for its initial public offering (IPO) at 151 riyals ($40.26) per share, the top of its indicative price range and implying a market capitalization on listing of 18.1 billion riyals ($4.8 billion).

The offering comprises 24 million existing shares to be sold by Saudi Telecom and the size of the offering is 3.62 billion riyals ($966 million). Immediately following the listing, Solutions is expected to have a free float of 20 percent of the shares.

This is the second mega offering from Saudi Arabia this week. On Tuesday, Saudi Arabian utility developer ACWA Power set an indicative price range for its IPO at 51-56 riyals potentially raising up to $1.2 billion.

The company along with HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital Company, as joint financial advisors, said the IPO order book was 130 times oversubscribed with the book-building process generating an order book of 471 billion riyals.

The retail subscription period is scheduled to commence on Sunday, 19 September 2021 and ends on Tuesday, 21 September 2021, the company said in a statement on the Saudi stock exchange Tadawul.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com

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© ZAWYA 2021


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