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Solutions by STC prices IPO as book building commences

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Solutions by STC, the Saudi Telecom unit that is to preparing for an initial public offering, has set an indicative price range for its listing.

The IPO – for which banks were appointed back in October 2020 – was originally looking at a valuation of US$2.4 billion. According to the latest reports, it is now aiming for SAR3.6 billion (US$960 million).

The book building process started yesterday, 5 September.

The plan is to sell 24 million shares in Arabian Internet and Communications Services Company – known as Solutions by STC – at an indicative price of 136 to 151 riyals per share, Saudi Telecom said.

The book-building process for the deal is scheduled to end on 12 September, after which the final price of the shares will be set. This will be followed by the subscription period for individual investors, currently scheduled for 19-21 September. The refund of excess subscription amounts will take place from 29 September.

Once complete, the shares will be listed on the main market of the Saudi Exchange.

In the first half of 2021, STC saw revenue increase by 9.49% compared to H1 2020, while gross profit for the same period increased by 2.25%.

Confirming the news at the time, Olayan Mohammed Alwetaid, stc group CEO, said the company had achieved "the highest quarterly and semi-annual revenues in its history, which is a direct result of the distinguished performance of all business units, and the group's subsidiaries, which reflected positively on the financial results".

It said it sees "growth opportunities in both the public and private sectors", including smart cities, the digitilisation of the healthcare system, cloud-first policies, and "the individual transformations of private sector companies across the Kingdom and the broader region".