Saudi Telecom Company (STC) is addressing banks to offer its solutions unit in an IPO.
According to Reuters, STC has requested a group of local and international banks to submit bids to participate in an initial public offering for its unit specialized in services and products STC Solutions.
The sources said that the initial evaluation of the company may range at the level of 9 billion riyals if it is evaluated at 20 times its annual revenues.
Abdullah Al-Hamed, head of advice at GIB Capital, considered that the move to launch STC Solutions will have important dimensions, including achieving value for the parent company, and granting a more comprehensive and independent framework and the ability to serve Different sectors for the proposed company.
Al-Hamed added in an interview with Al-Arabiya that the offering will help set a specific framework for STC Solutions that will enable it to focus on serving sectors more comprehensively.
He explained that the offering process would result in internal cash flows for the parent company.
This is STC Solutions is one of the Kingdom's largest providers in the field of technical solutions, and the number of its clients is 24,000, and the company operates in 35 cities in the Kingdom, with more than 1700 employees.
The company offers a range of services in areas including big data analysis, cybersecurity, IoT, and cloud computing.
The company serves a range of sectors including healthcare and education.
The State Public Investment Fund owns 70% of the shares of Saudi Telecom Company.
This step towards the offering comes two days after the company announced the expiration of the term of the Memorandum of Understanding with the Vodafone Group (Vodafone) for the possible acquisition of the Vodafone Group's stake in Vodafone Egypt, which amounts to 55%, without reaching an agreement to complete the deal.
and she said that the end of the extension of the memorandum of understanding is due to a lack of compatibility with the concerned parties, and an understanding was reached between stc and Vodafone Group to keep the dialogue open.
and STC had extended the memorandum of understanding last April for a period of 90 days. She confirmed that the two companies will work during this period to proceed with the transaction procedures, as specified in the memorandum ...
