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Saudi Arabia's sovereign wealth fund PIF has sold 2% of its stake in Saudi Telecom Company (STC) raising more than $1 billion while reducing its stake to 62% in the telecom provider’s share capital.
The offering, which comprised of the sale of 100 million shares at a final price of 38.6 riyals ($10.29) per share, was oversubscribed by both local and international institutional investors.
The sale will be executed through off-market negotiated deals on Thursday before market opening.
Following the sale, the remaining shares held by PIF in the kingdom’s largest telecoms provider will be subject to a 90-day contractual lock-up undertaking.
Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and joint bookrunners.
The Saudi sovereign wealth fund, which oversees nearly $1 trillion in assets, is driving the kingdom’s “Vision 2030” programme, which aims to diversify the economy from its dependance on oil.
It sold a 6% stake in STC in 2021 raising $3.2 billion.
(Reporting by Brinda Darasha; editing by Seban Scaria)
