PIF says stc share sale in line with fund’s strategy to “recycle its capital”

Saudi Arabia’s Public Investment Fund (PIF) has sold a 2% stake in telecom giant stc, amounting to 100 million shares, to local and international institutional investors.

The company set a final offer price of SAR 38.6 per share, raising a total of SAR 3.86 billion ($1.03 billion) from the offering.

The offering was reportedly oversubscribed and amounted to the largest ever accelerated bookbuild offering in Saudi Arabia and the wider MENA region, according to the sovereign wealth fund.

“This transaction is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy,” the fund said in a statement.

PIF reiterated the strategic importance of its ownership in the telecoms company and said it looks forward to supporting “stc’s leading role in shaping the future of the ICT sector in Saudi Arabia, one of its priority sectors”. 

Following the sale, PIF will maintain a 62% stake in stc, amounting to 3.1 billion shares.