Reuters reported on Tuesday – citing three informed sources – that the Saudi Telecom Company STC She approached several banks in order to bring her unit responsible for developing its products and services to an IPO.
She said The sources – who asked not to be identified: STC, which is the largest telecom operator in the Kingdom of Saudi Arabia, sent requests from local and international banks to submit bids to participate in a possible initial offering for its unit: (Communications Solutions) STC Solutions.
Reuters sources added that the company had not contacted banks about the size of its planned deal. The sources said: The revenues of (Telecom Solutions) last year exceeded 5 billion riyals (1.33 billion dollars) and profits in the range of 500 million riyals, which may make its offer a big offer.
One source said: The company’s valuation could reach about 9 billion riyals ($ 2.4 billion) if it collects 18 to 20 times its profits. The source added that the size of the initial public offering could be about $ 500 million if the company sold 20 percent.
The country has seen a wave of public offers this year as companies have benefited from Saudi demand for shares since the record IPO of oil giant Aramco last year.
Saudi Arabia is encouraging more companies to be listed on the stock exchange in an attempt to deepen the capital markets as part of reforms aimed at reducing their dependence on oil.
Bin Dawood Holding Company, a central retailer, earlier this week set an indicative price for an initial public offering, as it seeks to raise up to 2.19 billion riyals ($ 585 million) in one of the Riyadh listings.