Saudi Telecom’s subsidiary Arabian Internet and Communication Services Co is set to raise $966m in its IPO starting next week, and it’s already gaining traction pre-listing.
The subsidiary mainly offers B2B services such as cloud computing and cybersecurity to a regional clientele. The IPO values the firm at a market cap of almost $5b, while its parent shareholder is selling off a 20% stake. Pre-IPO, the order book was oversubscribed by 130 times — good news for Solutions by STC that plans to expand its offerings into the public and private sector.
As Saudi’s Vision 2030 brings about programs like the NEOM smart city and health-tech, the company stands to benefit from the growing digitization. Roughly 24 million shares are planned to hit the market at a price of $36.3 to $40.3 per share.
why it matters
Saudi’s public markets have been heating up for quite some time now — companies like Acwa Power announced IPO plans a few weeks ago (with a $1b target), while the Saudi Stock Exchange’s parent company Saudi Tadawul Group also plans to list later this year.