MIS expects to begin data fund development in 6 months, mulls possible IPO: vice chairman

Ibrahim Al-Moammar, Vice Chairman of MIS

Al Moammar Information Systems Co. (MIS) expects the development of the data fund – the investment vehicle that will be set up to develop, own, and operate data centers across Saudi Arabia – to begin within six months, conditional to the necessary regulatory approvals, vice chairman Ibrahim Al-Moammar told Argaam in a telephone interview.

The first phase of the fund is expected to be launched within 14-16 months, Al-Moammar said, expecting this phase’s investments to reach SAR 700 million with 12-megawatt (MW) capacity. The capacity will likely rise to 90 MW at a total investment cost of SAR 3.5 billion, if the initial phase proves successful.

MIS and Saudi Fransi Capital (SFC) are planning to study the possibility of offering the fund to the public at a later stage, if it is value-accretive to shareholders, after obtaining the necessary approvals.

The fund targets government sectors, major companies, cloud and application services providers, along with other electronic market giants worldwide, including global cloud services providers, social networks and electronic games.

The new vehicle aims to tap the opportunities available in the field of development, owning, and operation of data centers across the Kingdom, in line with the government plans to expand in e-services, applications and cloud computing, as well as the entry of many global companies into the Saudi market.

The fund’s launch also comes in line with the Kingdom’s plan to become a regional hub of global data centers, global cloud computing services providers, application services providers, and electronic games firms, Al-Moammar explained, pointing to the country’s central location and infrastructure that are part of the National Transformation Program (NTP).

Lucrative returns are expected from the fund, based on its feasibility study. Al-Moammar also expects the company to record solid annual returns from the management and operations of these centers, which will boost its profitability in the next few years.

Moreover, profit and dividends are expected from the fund, and capital gains are also projected from growth in the fund’s unit prices, if its objectives are achieved, he said.

MIS signed, on June 7, 2021, a binding memorandum of understanding (MOU) with SFC to establish a private investment fund to develop, own, and operate data centers across the Kingdom, Argaam reported.