15 Nov 2024
RIYADH: Saudi Arabia’s Public Investment Fund has raised SR3.86 billion ($1.03 billion) through the sale of a 2 percent stake in telecom firm stc.
The offering, consisting of 100 million shares priced at SR38.6 each, was met with strong demand from both local and international institutional investors, according to a statement.
The transaction represents the largest accelerated bookbuild offering ever conducted in Saudi Arabia and the broader Middle East and North Africa region, underscoring robust investor appetite for exposure to the region’s telecom sector and strategic assets managed by PIF.
“PIF reiterates the strategic importance of its ownership in stc and its diverse partnerships with the company through a number of PIF portfolio companies,” the statement said.
“PIF looks forward to supporting stc’s leading role in shaping the future of the ICT sector in Saudi Arabia, one of its priority sectors,” it added.
Following the sale, PIF retains a 62 percent ownership in stc, equivalent to 3.1 billion shares.
The sale aligns with PIF’s broader strategy to recycle capital into emerging sectors within the local economy, as the fund moves toward its vision of becoming a global investment powerhouse.
Currently managing around $925 billion in assets, PIF aims to drive economic transformation in Saudi Arabia and influence global markets.
The transaction was five times oversubscribed at the offer price, with demand from international investors accounting for three times of that, sources told Arab News.
They also revealed that 40 percent of the deal was allocated to international investors, marking the first-ever Accelerated Bookbuild Offering conducted on an overnight basis, in line with best practices in developed markets.
In a disclosure on the Saudi Exchange on Wednesday, it was noted that Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF in the transaction. The was to be executed as off-market negotiated deals on Nov. 14, under the Negotiated Deals Framework set by the Saudi Exchange.
PIF has actively invested in both public and private sectors since its re-launch in 2017, establishing 99 companies and supporting a shift towards a sustainable economy.
This approach positions Saudi Arabia as an emerging leader in economic and social transformation, providing avenues for both local and global stakeholders to engage in the Kingdom’s evolution.
With this latest transaction, PIF continues to underscore its dual objectives of capital growth and strategic reinvestment, supporting both economic diversification in Saudi Arabia and the fund's role as a catalyst for sustainable global investment.