Saudi Arabia’s Public Investment Fund (PIF) raised SAR 3.86 billion ($1.03 billion) by selling a 2% stake in Saudi Telecom Company (STC) through the region’s largest-ever accelerated bookbuilding process.
The sale of 100 million shares was priced at SAR 38.6 each, PIF said in a statement.
The offering saw strong demand from local and international institutional investors, exceeding the total shares on offer. A source told Reuters the sale was oversubscribed five times, with 40% of shares allocated to foreign investors.
PIF has retained a 62% stake in STC after selling 2% of its shares for $1.03 billion. The sale, managed by Goldman Sachs Saudi Arabia and SNB Capital, follows a 2021 sale of 6% of STC shares for $3.2 billion.
PIF said the transaction aligns with its strategy to recycle capital and invest in emerging sectors of the Saudi economy.
Experts say this move helps PIF monetize investments, attract foreign ownership, and reinvest in high-growth areas. It’s part of PIF’s goal to become the world’s third-largest sovereign wealth fund, managing over $1 trillion.
Thamer Al-Saeed of Rasana Financial noted the sale would not affect STC’s operations and highlighted the company’s stable dividends and strong market position, which continue to attract investors.
The sale is expected to boost STC’s appeal in Saudi and global indices, drawing more foreign and local investments.
Analyst Abdullah Al-Jubaili emphasized to Asharq Al-Awsat that it aligns with PIF’s efforts to attract international investors to key Saudi companies.
With current assets of $925 billion, PIF plans to expand by listing more companies, acquiring new businesses, and investing heavily in sectors like artificial intelligence.
These steps will support its mission to strengthen Saudi Arabia’s economy and its global position.
