Arabian Internet and Communications Services Company (solutions by STC), the ICT services provider in Saudi Arabia, has announced its intention to proceed with an initial public offering and listing of its ordinary shares (Shares) on the Main Market of the Saudi Exchange.
On 28 June 2021, the Capital Market Authority (CMA) approved the company’s application for an initial public offering of 24m Shares (Offer Shares), representing 20% of solutions by STC’s issued share capital, by way of a sale of existing Shares by the Saudi Telecom Company and Telecom Investment Trading Company Limited (a subsidiary of STC) (collectively, the Selling Shareholders). The final offer price of the Offer Shares will be determined at the end of the book-building period.
For over 25 years, solutions by STC has been delivering operational expertise and market-leading capabilities in key technology verticals across the information & communications technology value chain and has maintained a track record of strong financial performance. This underpins its current position as the leading IT services provider in Saudi Arabia, with a 13% market-leading share of the Kingdom’s B2B IT services market as of 2018. The company’s partner ecosystem includes diverse partnerships with more than 150 global technology players across the full ICT value chain.
Speaking about the IPO, Riyadh S Muawad, Chairman of solutions by STC’s Board of Directors, said: “Operating in the GCC’s largest economy and digital hub, solutions by STC’s bold growth strategy has positioned us to capture and optimize the significant growth expected in Saudi Arabia’s ICT market. Over 25 years, we have evolved into the Kingdom’s leading enabler of digital transformation, helping to deliver the Vision 2030 objective to establish and accelerate digitisation across the nation.”
Omer Alnomany, Chief Executive Officer at solutions by STC, added: “Today’s announcement marks an important milestone in solutions by STC’s journey. Our consistent growth, strong profitability, operational expertise and market-leading capabilities have allowed us to maintain our position as the leading digital enabler for Saudi Arabia. We have ambitious plans in a sector filled with opportunities and look forward to further strengthening and improving our profitability across our business lines, as well as investing in new business lines, extending our customer segments and developing new ones, and leveraging our platform.”
As the largest GCC economy and the digital hub of the region, Saudi Arabia’s B2B ICT services market is expected to grow at 6.7% p.a. – in comparison to a mature market’s growth rate of c. 3% – and is forecast to be worth SAR53bn ($14.14bn) by 2025. This presents ample opportunities for the company to capture significant growth across various segments in line with the goals of Saudi Arabia’s Vision 2030, within which modernisation through IT services and digitisation are key priorities.
Solutions by STC offers end-to-end IT services and digital solutions across the ICT value chain, including core ICT services, IT managed and operational services and digital services across several sectors, including government, healthcare, real estate, banking, oil and gas, and education. To date, the company has served over 24,000 clients across over 35 cities in Saudi Arabia.