Saudi Telecom’s subsidiary Solutions by STC premiered on the markets yesterday as its IPO kicked off with over $126b in stock orders. The internet-services company sold almost 24 million shares, which represent a 20% stake — raising $966m in total through more investor bids than those seen during Saudi Aramco’s listing. As investors are keen to get a piece of the STC pie, the company has reached a $4.8b valuation.
The high gains are primarily driven by the technology industry’s rapid growth in KSA — the National Digital Transformation plan to increase tech jobs and infrastructure has been a key component in the Kingdom’s diversification efforts. With Saudi’s $1.5b tech infrastructure market forecasted to grow at a CAGR of 9% up until 2030, STC is primed for future market share gains.
why it matters
Solutions by STC saw a 30% rise in its share price on debut — and these rapid gains show how robust the Saudi listing scene is becoming. With five listings approved by Saudi’s regulator in the past two days, we're bound to see more similar action again soon.