Arabian Internet and Communications Services (solutions by stc) announces offering price range and commencement of institutional book-building

Riyadh – Arabian Internet and Communications Services Company (“solutions by stc” or “The Company”), the leading ICT services provider in Saudi Arabia (“KSA”) along with HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital Company, as joint financial advisors, announce the price range for its Initial Public Offering (the “IPO” or the “Offering”) as well as the commencement of the institutional book-building period. The approved prospectus containing the full details of the Offering has also been published.

The price range for the Offering has been set at SAR 136 to SAR 151 per share (the “Price Range”).

On 28 June 2021, the Capital Market Authority (“CMA”) approved the Company’s application for an initial public offering of 24,000,000 Shares (“Offer Shares”), representing 20% of solutions by stc’s capital, by way of a sale of existing Shares by the Saudi Telecom Company “stc” and Telecom Commercial Investment Company Limited (a subsidiary of stc) (collectively, the “Selling Shareholders”). The final offer price of the Offer Shares will be determined at the end of the book-building period.

Offering Details:

• The price range for the Offering has been set at SAR 136 to SAR 151 per share (the “Price Range”)
• The Offering is comprised of 24,000,000 existing Shares to be sold by the current shareholders (the “Offer Shares”) - Immediately following listing, the Company is expected to have a free float of 20% of the Shares
• With respect to the Offering, the Company appointed HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital as Financial Advisors, Underwriters and Bookrunners (together, the “Bookrunners” or “Financial Advisors”). The Company also appointed HSBC Saudi Arabia to act as Lead Manager. 
• The Saudi British Bank (SABB), Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, Alinma Bank and Bank Albilad have been appointed as receiving entities (collectively, the “Receiving Entities”) for the Individual Investors tranche.

The CMA and Saudi Exchange approvals have been obtained for the offering and listing outlined below:

The Offering will be restricted to the following two groups of investors:

• Tranche (A): Participating Parties: this tranche comprises the parties entitled to participate in the book building process as specified under the Instructions for Book Building Process and Allocation Method in Initial Public Offerings (the “Book Building Instructions”) issued by the Capital Market Authority (“CMA”) Board pursuant to Resolution No. 2.94-2016 dated 15/10/1437H (corresponding to 20/07/2016G), as amended by CMA Board Resolution No. 3-102-2019 dated 18/01/1441H (corresponding to 17/09/2019G) (collectively the “Participating Parties”). The number of Offer Shares to be provisionally allocated to Participating Parties is twenty-four million (24,000,000) Offer Shares, representing 100% of the total Offer Shares. Final allocation of the Offer Shares will be made after the end of the subscription period for Individual Investors. In the event that Individual Investors (as defined in Tranche B below) subscribe for the Offer Shares allocated thereto, the Bookrunners shall have the right to reduce the number of shares allocated to Participating Parties to a minimum of twenty-one million, six hundred thousand (21,600,000) Offer Shares, representing 90% of the total Offer Shares.
• Tranche (B): Individual Investors: this tranche comprises Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi, who can subscribe under their names for her own benefit, on the condition that she proves that she is a divorcee or widow and the mother of her minor children, in addition to any non-Saudi natural person who is resident in the Kingdom or any GCC natural persons, provided they have a bank account with one of the Receiving Entities and are allowed to open an investment account (collectively, the “Individual Investors” and each an “Individual Investor,” and together with Participating Parties “Subscribers”). Subscription of a person in the name of his divorcee shall be deemed invalid, and if a transaction of this nature is proved to have occurred, the law shall be enforced against such person. If a duplicate subscription is made, the second subscription will be considered void and only the first subscription will be accepted. A maximum of two million, four hundred thousand (2,400,000) Offer Shares, representing 10% of the total Offer Shares, will be allocated to Individual Investors, provided that Participating Parties subscribe to all the Offer Shares allocated thereto. In the event that Individual Investors subscribe for all the Offer Shares allocated thereto, the Bookrunners shall have the right to reduce the number of shares allocated to Individual Investors in proportion to the number of Offer Shares subscribed for thereby.

© Press Release 2021