Global law firm White & Case LLP and The Law Office of Megren M. Al-Shaalan have advised HSBC Saudi Arabia, Morgan Stanley Saudi Arabia, and SNB Capital Company as Financial Advisors and Co-Underwriters on the initial public offering (IPO) of stc's information and communications technology arm, Arabian Internet and Communications Services Company's (Solutions by stc), on the Main Market of the Saudi Stock Exchange (Tadawul).
Solution by stc offered 24 million ordinary shares to institutional and retail investors, amounting to a 20 percent of its share capital. With the total IPO proceeds raising SAR 3.624 billion (US$ 966.4 million), Solutions by stc's implied market capitalisation was approximately SAR 18.12 billion (US$ 4.831 billion) at the commencement of trading, which began on 30 September 2021.
The institutional offer comprised 90 percent of the Offer Shares and was oversubscribed by 13,003 percent, raising SAR 471.1 billion (US$ 125.6 billion). The remaining 2.4 million shares, offered to retail investors at SAR 151 (US$ 40), was oversubscribed by 2,365 percent.
Solutions by stc is the largest IT services provider in the Kingdom of Saudi Arabia leading the way in the country's digital transformation. It provides holistic, end-to-end technological solutions and has established capabilities in cloud services, internet of things (IoT) digital services and cybersecurity systems integration. The company caters to a number of sectors including banking, education, government, healthcare, real estate, oil and gas and telecommunications.
The White & Case team that advised on the transaction was led by partner Sami Al-Louzi (Dubai) and associate Ibrahim Soumrany (Dubai). The Law Office of Megren M. Al-Shaalan team in Riyadh was led by partner Megren Al-Shaalan and included associates Simon O'Connell-Schizas, Waad Alkurini, Nezar Al-Abbas and Hend Bahabri.
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