Saudi Telecom’s tech unit aims to raise up to $960 million in IPO

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DUBAI — Arabian Internet and Communications Services Co, a unit of Saudi Telecom, has set an indicative price range for its initial public offering, aiming to raise as much as 3.6 billion riyals ($960 million).

The unit, also known as Solutions by STC, plans to sell 24 million shares at an indicative price of 136 to 151 riyals per share, it said.

Saudi Telecom is selling a 20% stake in its unit in the share sale. Arabian Internet and Communications Services has a broad portfolio across the information technology and digital services sectors, especially in the B2B sector.

STC unit’s IPO is among a spate of deals hitting the Saudi Arabian exchange this year including Acwa Power’s more than $1 billion deal and Saudi Tadawul Group.

The book-building process for the deal will begin on Sunday and end on Sept. 13, while the subscription period for individual investors will take place on Sept. 19-21.

HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital are acting as financial advisers, underwriters and bookrunners on the deal.

($1 = 3.7504 riyals) (Reporting by Saeed Azhar; Editing by Robert Birsel and Pravin Char)