The Arabian Internet and Communications Services Company (Solutions by STC) intends to offer 20% of its shares for public subscription in the Saudi stock market.
A subsidiary of the Saudi Telecom Company, Solutions by STC will list all of its shares.
The company said that the final price of the offering will be determined at the end of the book building period.
Solutions by STC
The company will offer 24 million shares, representing 20% of the company’s shares, for public subscription in two tranches. One of them is for individuals, and the other for financial institutions.
The number of shares allocated to the institutional segment is 24 million shares, representing 100% of the total offering shares, provided that the final allocation to this category comes after the end of the subscription period designated for individuals.
In the event that individual subscribers buy all the offer shares allocated to them, the subscription registry managers have the right to reduce the number of shares allocated to the participating classes to a minimum of 21.6 million. This is 90% of the total offering shares.
Tranche B includes natural persons who are Saudis and residing in the Kingdom, or Gulf investors with, who have a bank account with one of the receiving entities.
Solutions by STC appointed HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, and Al Ahli Financial as financial advisors, institutional bookrunners, and underwriters for the offering.
HSBC Saudi Arabia will act as lead manager.
Individual subscribers’ receiving banks are Saudi British Bank (SABB), Al Ahli Saudi, Al Rajhi Bank, Riyadh, Alinma Bank and Al Bilad Bank.
The most important financial results of the company in 2020 compared to 2018, were net profits of 702 million riyals, compared to 556 million riyals.
Revenues were 6.9 billion riyals, compared to 4.041 billion riyals.
In a related context, STC group announced an increase in its revenues during the second quarter by 6.56% compared to the same quarter of the previous year.
The revenues reached 15.899 million riyals. They also increased by 9.49% for the first half of 2021 to 31.594 million riyals.
The preliminary financial results for the period ending on June 30 also included an increase in gross profit during the second quarter by 0.13%, compared to the same quarter of the previous year, to reach 8.352 million riyals, and for a period of six months 16,909 million riyals, an increase of 2.25%.
The operating profit during the second quarter increased by 6.14% compared to the same quarter of the previous year to reach 3.250 million riyals, and for a period of 6 months, 6.732 million riyals, an increase of 10.98%.