stc Group CEO expects solutions unit listing in next 2 months, no plans to float stc pay

Olayan Mohammed Alwetaid, Group CEO of stc

Olayan Mohammed Alwetaid, Group CEO of stc, expects the listing of solutions by stc within the next two months.

In a statement to Al-Arabiya TV, Alwetaid said that banks were appointed for the IPO, with Saudi National Bank (SNB) named as the financial advisor.

The offering will take place through the sale of shares and not by raising capital, he said, adding that the company's financial position is strong with promising strategic plans.

He further explained that the information technology (IT) sector in which stc operates is promising and growing globally as well as in Saudi Arabia. “We provide IT and managed services, and IT solutions in general, for both business and government sectors.”

Referring to stc pay, Alwetaid said the business model relies on digital banking and digital solutions to provide banking services. “It will be technical banking services,” he said, adding that the bank will accept deposits in the future, and the services will be similar to current banking services.

The partnership with Western Union is an addition to the bank, where customers will be able to transfer money to 200 countries around the world.

A partnership with a banking partner is not currently on the table, Alwetaid said. “The company will be able to offer banking solutions significantly, and there may be other partnerships in the future,” he added.

He further stated that there are no current plans for stc pay to go public. The focus is now on the bank's status and at other stages that could be considered, Alwetaid commented.

The Capital Market Authority (CMA) approved the request of Arabian Internet and Communications Services Co. (Solutions by stc) to float 24 million shares for IPO, representing 20% of the company's shares, according to data available on Argaam.

Solutions by stc was founded in 2002, and in December 2007, stc acquired the entire stake of its capital of SAR 100 million.