RIYADH, 8 January 2003 — Saudi Telecom Company (STC) has generated more than SR36 billion ($9.6 billion) in revenues from the sale of 30 percent of its shares, Minister of Finance and National Economy Ibrahim Al-Assaf announced yesterday.
Speaking to reporters, the minister said the final result of the Initial Public Offering (IPO), involving the sale of 90 million of the company’s 300 million shares, will be declared next week.
"At close of the IPO, the value of requests filed by citizens was SR36 billion. The process was a huge success," said the minister, a day after the three-week subscription period ended.
Acting Minister of Posts, Telegraph and Telephones and STC Chairman Khaled Al-Gosaibi said the number of subscribers exceeded 900,000. He attributed the IPO success to the company’s strong financial position.
Al-Assaf said the ministry would soon start refunding the excess money deposited in the banks and, also determine the exact date to list the firm on the Saudi bourse.
Economic studies predict the Telecom share, sold in the IPO at $45, will start trading at more than $50.
The Cabinet in early September raised the capital of Saudi Telecom from $3.2 billion to $4 billion. Saudi Telecom posted net profits of $762.4 million in the first nine months of 2002, down 19.5 percent on $911.5 million a year earlier. Profits in the third quarter of 2002 alone were $414.4 million, up 11 percent on the $373.6 million a year earlier. Total assets were $11.4 billion on Sept. 30, 2002, but economic studies predicted they would swell by another 20 percent once the company is listed.
