Solutions by stc’s successful IPO reflects Saudi economy’s strength, investors’ high confidence in the local ICT sector

Oct 03, 2021

Solutions by stc’s successful IPO reflects Saudi economy’s strength, investors’ high confidence in the local ICT sector

The Arabian Internet and Communications Services Company (Solutions by stc) announced the success of its IPO. The company’s market value has reached, upon listing, SAR 18.1 billion (USD 4.8 billion). The total size of the offering increased to SAR 3.624 billion (USD 966 million), which represents 20% of the company's capital. Based on this offering, stc Group seeks to diversify the Saudi stock market and raise its value. The volume of the Saudi communications and information technology sector reached SAR 33.8 billion in 2018, and it is expected to grow at a compound annual growth rate of 6.7% by reaching SAR 53.1 billion by 2025.

Solutions by stc is one of the most important companies in the Kingdom’s information technology sector. It holds the largest share of the Saudi market, with a rate of 13%. Based on this step, Solutions by stc is the first company of listed on the Software & Services index in Tadawul

Solutions by stc’s IPO is one of the most successful local offerings and it has attracted a large number of the international and local investors who are interested in the digital transformation, which represents stc Group’s vision to be the world's leading digital company.

The IPO order book of institutional investors achieved a coverage ratio exceeding the target by 13004.7%, with a value of SAR 471 billion. The Saudi companies’ subscription achieved a coverage rate estimated at 9507.6%, the public and private funds as well as the others funds managed by financial market institutions achieved a coverage with 2395.9%, the foreign investors 908.7%, the government institutions 41.4%, and the other investors 151.1%. The individual subscribers also reached 1,042,090 participations, with coverage exceeding the target by 2365.0%, and the requests worth SAR 8.6 billion. The trading of Solutions by stc shares started in the Saudi Exchange (Tadawul) on September 30.2021, under the Software & Services sector. On the first trading day, the share price closed at SAR 196.2, an increase of 30% over the offering price SAR 151.

Solutions by stc’s successful IPO reflects the diversity of the Saudi economy, the investors’ high confidence and the external funds’ interests in the Kingdom’s information technology sector and the emerging technologies in particular. This step also reflects the successful journey of the stc Group in the Saudi digital payments sector, especially the company had recently transformed stc Pay to a digital bank after it became the first Saudi billion emerging company. Also launched sirar cybersecurity, and invested in electronic games platform through stcplay platform, which reflects the success of the privatization of the telecommunications sector for more than 20 years ago, and the Kingdom’s digital transformation plans.