DUBAI: The Arabian Internet and Communications Services Company (Solutions by STC) will launch its initial public offering (IPO), listing its shares on the Kingdom’s stock exchange.
The deal will see the company, which is a subsidiary of the Saudi Telecom Company, offering 24,000,000 shares, representing 20 percent of its issued share capital.
Solutions by STC sent its initial application for an IPO earlier this year, and the Capital Market Authority (CMA) approved it on June 28, 2021.
The company has been operating in Saudi Arabia for over 25 years, and has achieved a 13 percent market-leading share of the Kingdom’s business-to-business information technology services market.
“Our consistent growth, strong profitability, operational expertise and market leading capabilities have allowed us to maintain our position as the leading digital enabler for Saudi Arabia,” Omer Alnomany, Chief Executive Officer of Solutions by STC, said.
He added that the company has plans to invest in new business lines, and expands its customer segments.
The move coincides with what the CMA earlier said was “record interest from companies to sell shares to the public” in Saudi Arabia.
It is part of the Kingdom’s ongoing campaign to modernize its economy, and diversify its revenue streams away from oil.
The market authority has said it wants to list at least 20 new companies on the Saudi index through IPOs this year.