PIF sells 2% stake in STC for over $1 billion
Deal News | Nov 14, 2024 | Zawya
Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has successfully sold 2% of its stakes in the Saudi Telecom Company (STC) for more than $1 billion. The sale involved 100 million shares, priced at 38.6 riyals ($10.29) per share, and saw strong demand from both local and international institutional investors, leading to oversubscription. This transaction reduces PIF's stake in STC to 62%. The sales will be completed through off-market deals before the market opens, with a 90-day lock-up period applicable to the remaining shares held by PIF. Investment banks Goldman Sachs Saudi Arabia and SNB Capital are managing the sale as joint global coordinators and joint bookrunners. The PIF, which controls nearly $1 trillion in assets, is part of Saudi Arabia's Vision 2030 initiative, focusing on economic diversification. Notably, PIF had previously raised $3.2 billion by selling a 6% stake in STC in 2021.
Sectors
- Telecommunications
- Investment and Asset Management
Geography
- Saudi Arabia – Relevant because both the Public Investment Fund and Saudi Telecom Company are based in Saudi Arabia, and the transaction is part of the country's Vision 2030 economic strategy.
- International – Relevant due to the oversubscription of shares from both local and international investors, indicating global interest in the transaction.
Industry
- Telecommunications – Involves companies that provide telecommunication services such as phone and internet services, relevant here because the sale involves Saudi Telecom Company.
- Investment and Asset Management – Focuses on the management of assets and investments, relevant as the Public Investment Fund is actively managing its portfolio to align with Saudi Arabia's Vision 2030.
Financials
- $1 billion – The proceeds raised from selling the 2% stake in STC.
- $10.29 per share – The price per share at which the 100 million shares were sold.
- $3.2 billion – Amount previously raised by PIF in 2021 by selling a 6% stake in STC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Saudi Telecom Company (STC) | Target Company | Company | Saudi Arabia's largest telecommunications provider and the company whose shares are being partially sold by PIF. |
| Public Investment Fund (PIF) | Seller | Government | Saudi Arabia's sovereign wealth fund, reducing its stake in STC as part of its asset management strategy. |
| Goldman Sachs Saudi Arabia | Joint Global Coordinator / Bookrunner | Company | One of the financial institutions leading the coordinate and execution of the stake sale. |
| SNB Capital | Joint Global Coordinator / Bookrunner | Company | Another financial institution participating in facilitating the sale. |