STC considers services subsidiary IPO

STC considers services subsidiary IPO

STC reportedly requested banks for pitches to advise the telecoms company in a potential IPO of its products and services development division.

Sources speaking to Reuters, said the operator sent requests for proposals last week for the public offering of its Solutions by STC arm. The IPO could be worth around $500 million if the company floats 20 per cent, said Reuters sources. However, Bloomberg reported STC was considering the sale of around 30 per cent.

Solutions by STC alongside the operator’s sales and distribution arm were key drivers for a 10% increase in revenue for the company’s Q2 results.

The division offers ICT services to companies that require: big data analysis; IoT, cybersecurity; managed services; cloud computing and system integration.

Speculation on the sale comes at a time when STC is attempting to acquire a majority stake in Vodafone Egypt, which had been beset with delays.

The Saudi operator missed a deadline last week to finalise terms but Vodafone Group stated the two are still in negotiations for the sale. STC was reportedly seeking a reduction to its non-binding $2.39 billion bid for Vodafone Egypt.

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