Saudi PIF Offers 2% Stake in Saudi Telecom Co. to Investors

Saudi Arabia’s Public Investment Fund (PIF) has made a significant announcement regarding its stake in Saudi Telecom Co. The fund is set to offer 2 percent of its shares, which translates to a whopping 100 million shares, to qualified institutional investors both locally and globally. This move is part of PIF's broader strategy to enhance its position as a global investment powerhouse.

Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for this offering. They have stated that the share price, or offer rate, will be determined through an accelerated book-building process. This means that the price will be set based on demand from investors, ensuring that it reflects the current market conditions.

PIF, which manages assets worth approximately $925 billion, aims to become the world’s most impactful investor. The fund's vision includes creating new sectors and opportunities that will not only shape the future global economy but also drive the economic transformation of Saudi Arabia. This offering is a step towards achieving that vision.

According to a statement from the Saudi Stock Exchange, after the offering is completed, PIF will still hold 62 percent of Saudi Telecom Co.’s issued share capital. However, these remaining shares will be subject to a 90-day lock-up period, meaning they cannot be sold during this time. It is also important to note that the company will not receive any proceeds from this issuance, and the offering will not dilute the shares of existing shareholders.

The final details regarding the number of shares offered, the price, and the results of the offering will be announced by November 14. The sale will take place through off-market negotiated deals on the same day, prior to the market opening. This process is in accordance with the Negotiated Deals Framework set by the Saudi Exchange.

This offering is not just limited to local investors; it will also be available to qualified foreign institutional investors, as well as institutional beneficiaries of swap agreements authorized by the Capital Market Authority. Additionally, investors from the Gulf Cooperation Council (GCC), including companies and funds that are permitted to trade in Saudi shares, will also have the opportunity to participate.

This move by Saudi Arabia’s Public Investment Fund is a clear indication of its commitment to expanding its influence in the global investment landscape. By offering a portion of its shares in Saudi Telecom Co., PIF is not only enhancing its portfolio but also inviting a diverse range of investors to participate in the growth of the Saudi economy. As the world watches, this could be a pivotal moment for both PIF and the broader market, potentially setting the stage for future investments and economic developments in the region.