Arabian Internet and Communications Services Company (solutions by stc) announces its intention to list
on the Main Market Saudi Exchange
· Arabian Internet and Communications Services Company (“solutions by stc” or “The Company”) announces its intention to proceed with an Initial Public Offering (“IPO” or “Offering) and Listing on the Main Market of the Saudi Exchange of 20% of the Company’s share capital by way of a secondary offering.
· The Capital Market Authority (“CMA”) approved the Company’s application for the initial public offering of 24 million ordinary shares (representing 20% of the Company’s share capital) on 28 June 2021
· For over 25 years, solutions by stc has been delivering strong operational expertise and market leading capabilities in key technology verticals across the information & communications technology (ICT) value chain
· For 5 consecutive years, it has been rated as the #1 IT services provider in Saudi Arabia
· The Company has a broad portfolio across the IT & Digital value chain enabling one-stop-shop for B2B sector with a focus on core ICT services, IT Managed and Operational services and Digital services
· The Company has a strong partner ecosystem that includes diverse, rich and long-standing partnerships covering the full ICT value chain with more than 150 global technology vendors and third-party providers
· solutions by stc has an exclusive and strategic partnership with stc, the largest telecom player in the kingdom, a partnership with tangible benefits to both parties
· The Company has a track record of strong financial performance and a 13% market-leading share of KSA’s B2B IT service market as of 2018
· The Company benefits from a seasoned management team with strong operational experience and execution capabilities with an average of 19 years’ experience within the sector
Riyadh, 22 August 2021 – Arabian Internet and Communications Services Company (“solutions by stc” or “The Company”), the leading ICT services provider in Saudi Arabia (“KSA”), announces its intention to proceed with an initial public offering (“IPO” or the “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 24,000,000 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 “stc” 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 strong operational expertise and market leading capabilities in key technology verticals across the information& communications technology (“ICT”) 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 strong partner ecosystem includes diverse partnerships with more than 150 global technology players across the full ICT value chain.
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 digitization across the nation.”
Omer Alnomany, Chief Executive Officer at solutions by stc, said: “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.”
He added: “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 leading 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 SAR53 billion 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 modernization through IT services and digitization 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.