Saudi wealth fund PIF plans to raise $1.03 bln from 2% stake sale in STC

Industry:    22 hours ago

Saudi Arabia’s sovereign wealth fund PIF plans to raise 3.86 billion riyals ($1.03 billion) from a 2% stake sale in telecoms operator STC, after state television Ekhbariya said on Thursday the offering price was set at 38.6 riyals per share.

The price for the sale of the 100 million shares represents around 6.1% discount to STC’s closing price of 41.1 riyals on Wednesday, according to Reuters calculations.

Subscribers to the share offering will be paid 220 million riyals in dividends, the state TV added.

PIF will keep a stake of 62% in the country’s largest telecoms operator after the offering, which was announced late on Wednesday by the banks running the deal.

The wealth fund, the main engine of Crown Prince Mohammed bin Salman’s Vision 2030 effort to wean the Saudi economy off its dependence on the oil that made it one of the world’s richest nations, had sold another 6% of STC for $3.2 billion in 2021.

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