3.2 billion riyals additional liquidity with “STC” by the end of the month

The Saudi Telecom Company (STC) will have additional liquidity by the end of this month, with the end of the subscription in The public offering of the Arab Company for Internet and Communications Services (Solution by STC).

According to Al Arabiya.net’s calculations, the net proceeds of STC from the offering of its subsidiary will reach about 3.2 billion riyals, after deducting the costs of the offering.

After the process of building the order book was completed, the final price of the offering was set at 151 riyals per share, after the percentage of institutional subscription coverage amounted to 13003%, and it is scheduled to end tomorrow, Tuesday, the process of individual subscription in the company’s shares.

The total shares offered by STC amount to about 21.6 million shares, of which 1.2 million shares will be sold by STC directly after subscription to Solution by STC on the basis of the final offering price to be used in the framework of the company’s employee stock program.

Thus, the total cash proceeds obtained from the offering amount to about 3.2616 billion riyals.

According to the offering prospectus, an amount estimated at 63.3 million riyals will be deducted to settle all expenses related to the offering, including the fees of the financial advisors, the subscription manager, the bookrunners, the underwriters, the legal advisor, the legal advisor to the underwriters, the financial professional care advisor, and the auditor, Receiving entities, and the market advisor, as well as marketing, printing and distribution fees, and other fees and expenses related to the offering process.

The Saudi Telecom Company’s share of the expenses is about 54.24 million riyals, and therefore its net proceeds from the offering amount to about 3.2 billion riyals.

Organizational Structure of Solution by STC

During the offering, the Saudi Telecom Company will sell about 21.6 million shares of Solution by STC, while the Telecom Company for Commercial Investment Limited will sell 3.6 million shares.

After the offering, STC’s stake in Solution by STC will decline from 97% to 79%, to own about 94.8 million shares, while the Telecom Company for Commercial Investment Limited will be completely exited from the company.

The Telecom Company for Commercial Investment Ltd. is a wholly owned subsidiary of the Saudi Telecom Company.


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