Saudi Telecom Company (STC) scoped-out financial services providers to advise on a potential IPO of its Solutions unit, Reuters reported, with media speculating up to 30 per cent of the division could be floated.
Multiple financial websites reported the news, all quoting undisclosed sources. Reuters speculated 20 per cent could be offered and raise $500 million, while Bloomberg cited the 30 per cent range.
Solutions by STC provides a range of ICT offers to organisations covering system integration; managed services; IoT platforms; cybersecurity; cloud computing; and big data analysis. It has customers across a number of vertical sectors including property, healthcare, government and education.
During the company’s Q2 earnings call, STC CFO Ameen Al Shiddi pointed to the division as one of the two major contributors to its topline growth for the quarter, though revenue figures are not broken down by segment in its publicly released results.
Reports of the potential IPO come as STC’s protracted attempted acquisition of a majority stake in Vodafone Egypt continues to rumble-on without resolution.
Last week the memorandum of understanding with Vodafone Group to acquire the asset expired, though dialogue between the two parties continues with rumours STC is seeking a cut-price deal.
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