The Arab Company for Internet and Communications Services “solutions by stc” announced its intention to offer part of its shares for public subscription and to list its ordinary shares in the main market for the Tadawul of Saudi Arabia.
The company said in a statement today, Sunday, that the initial public offering process consists of offering 24 million ordinary shares for listing in the main market for the Saudi Tadawul, and the offering shares in total represent 20% of the company’s capital.
It added that it had appointed HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, and Al-Ahly Financial Company as financial advisors, managers of the institutional subscription registry and underwriters to cover the offering, collectively referred to as “IPO book managers” or “financial advisors”.
The company also appointed HSBC Saudi Arabia as the lead manager in connection with the offering, and the Saudi British Bank “SABB”, the National Bank of Saudi Arabia, Al Rajhi Bank, Riyad Bank, Alinma Bank and Bank Albilad were appointed as the recipients, collectively referred to as the “receiving parties” in relation to the tranche. Individual subscribers.
Subscription in the offering shares is limited to two tranches of investors, tranche (A) which are the participating categories. This segment includes the categories that are entitled to participate in building the order book in accordance with the instructions for building the register of orders and allocating shares in initial subscriptions issued by the Board of the Capital Market Authority.
The number of offering shares that will be initially allocated to the participating classes is 24 million offering shares, representing 100% of the total offering shares, provided that the final allocation is after the end of the individual subscription period.
In the event that individual subscribers subscribe to all the offering shares allocated to them, the subscription registry managers have the right to reduce the number of shares allocated to the participating classes to a minimum of 21.6 million offering shares, representing 90% of the total offering shares.
Tranche (B) is individual subscribers, and this segment includes Saudi natural persons in addition to any resident non-Saudi natural person or Gulf investors with natural personality who have a bank account with one of the receiving entities, and they are entitled to open an investment account.
On June 28, 2021, solutions by stc obtained the approval of the Capital Market Authority to request the initial public offering of 24 million shares, which represents 20% of the company’s issued capital, by selling the existing shares by the Saudi Telecom Company. stc” and the Communications Company for Commercial Investment Limited, a subsidiary of the Saudi Telecom Company, and the final price of the offering shares will be determined at the end of the order book building period.
On this occasion, Riyad Moawad, Chairman of the Board of Directors of Solutions by stc, said: “Solutions by stc operates within an economy that is the largest in the region and possesses all the ingredients to achieve significant growth that consolidates its position as a leading regional center in the digital field, and our ambitious strategy has helped us promote the growth of Our business has contributed to stimulating the information technology market in the Kingdom and benefiting from its promising opportunities. We have also developed our capabilities and expertise, which enabled us to play a pivotal role in enabling the digital transformation process that the Kingdom is currently witnessing and in achieving the goals of the digital economy in accordance with the Kingdom’s Vision 2030.”
For his part, Omar Al-Noamani, CEO of Solutions by stc, said: “This step represents a new stage in the history of solutions by stc, which is full of achievements and success, as it reflects the encouraging levels of growth witnessed by our business, our successive profits during the previous years, our extensive operational experience and our leading technical capabilities. One of the most important factors that helped us achieve our leadership position in the information technology and digital solutions sector in the Kingdom.”
Al-Noamani added: “We plan to take advantage of the promising opportunities that abound in the communications and information technology sector in the Kingdom, and seek to strengthen our leadership position within the digital market in the Kingdom, invest in new business lines, expand our customer base, in addition to developing and improving our technical and digital capabilities.”
Results of solutions by stc
Solutions by stc’s revenues in 2020 amounted to 6.891 billion riyals, compared to 4.041 billion riyals in 2018, with a compound annual growth rate of 30.6%.
In parallel with this significant growth in revenue, solutions by stc recorded strong growth in net profits; The company’s net profit in 2020 amounted to 702 million riyals, which constitutes a compound annual growth rate of 12.3% compared to the net profit of 556 million riyals in 2018.
The profit before interest, zakat, taxes and amortization amounted to 786 million riyals, which constitutes a compound annual growth rate of 15.3% compared to 591 million riyals in 2018.
She noted that this strong growth is supported by a balanced mix of revenue between service categories – in 2020, ICT services contributed 54% of revenue, while managed and operational IT services contributed 24%, and digital services contributed 22%.
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