Public Investment Fund’s USD 3.2 Billion Sale of Shares in STC

Abuhimed Alsheikh Alhagbani Law Firm (AS&H) in co-operation with Clifford Chance has advised the Public Investment Fund on the deal. White & Case and The Law Office of Megren M. Al-Shaalan have advised stc.

The Public Investment Fund (PIF) successfully completed the sale of a partial stake of its shares in STC by way of a secondary public offering in a first-of-its-kind transaction in Saudi Arabia.

120 million shares representing 6.0% of STC’s share capital were sold to local and international institutional investors and retail investors through an offering conducted under Regulation S and Rule 144A under the US Securities Act with the total offering size reaching approximately USD 3.2 billion, making this the largest equity capital markets transaction in Saudi Arabia since the IPO of Saudi Aramco, the largest secondary follow-on transaction in EMEA in the last three years and the largest secondary follow-on transaction in CEEMEA in nearly ten years.

This transaction is in line with PIF’s strategy 2021-2025 to recycle capital by selling stakes in the companies owned by PIF to reinvest the proceeds in the Kingdom’s emerging sectors.

Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and SNB Capital Company acted as financial advisors on the offering, and as bookrunners together with Citigroup Saudi Arabia and Credit Suisse.

stc is the digital enabler in the Middle East offering mobile, landline, internet and TV on-demand services, as well as international telecommunication, broadband and other related services.

The team was led by partners Omar Rashid (Picture) and Mansoor Al-Hagbani, supported by Sultan AlFayez (Senior Associate) and Alhanouf Al-Sultan, AlJawharah AlSadoun and AlJazi AlHagbani (Associates).

The White & Case team which advised on the transaction included partners Sami Al-Louzi (Dubai), Laura Sizemore and Inigo Esteve (both London) and associates Ibrahim Soumrany (Dubai), Claudia Hasbun (London), Nour Ghaleb, Ghislaino Kamdo (both Dubai) and Ahmed Bekheit (Cairo). The Law Office of Megren M. Al-Shaalan team in Riyadh included partner Megren Al-Shaalan and associates Manal Al-Musharaf, Nawaaf Alawaad, Simon O’Connell-Schizas, Jad Slim, Waad Alkurini, Nezar Al-Abbas and Hend Bahabri. 

Involved fees earner: Alhanouf Al-Sultan – Abuhimed AlSheikh AlHagbani (AS&H); Sultan AlFayez – Abuhimed AlSheikh AlHagbani (AS&H); Aljazi Alhagbani – Abuhimed AlSheikh AlHagbani (AS&H); Omar Rashid – Abuhimed AlSheikh AlHagbani (AS&H); Mansoor Al Hagbani – Clifford Chance; Aljawharah AlSadoun – Clifford Chance; Nezar Al-Abbas – White & Case; Sami Al-Louzi – White & Case; Manal Al-Musharaf – White & Case; Megren Al-Shaalan – White & Case; Waad Alkurini – White & Case; Ahmed Bekheit – White & Case; Inigo Esteve – White & Case; Nour Ghaleb – White & Case; Claudia Hasbun – White & Case; Ghislaino Kamdo – White & Case; Laura Sizemore – White & Case; Ibrahim Soumrany – White & Case;

Law Firms: Abuhimed AlSheikh AlHagbani (AS&H); Clifford Chance; White & Case;

Clients: Public Investment Fund; Saudi Telecom;

Giulia Di Palma

Author: Giulia Di Palma