solutions by stc allocates 2 shares per individual investor in IPO

Logo of Arabian Internet and Communications Services Co. (solutions by stc)

Arabian Internet and Communications Services Co. (solutions by stc) allocated a minimum of two shares per  individual subscriber.

The remaining shares will be allocated on a pro rata basis at around 0.5776% on average, based on the size of each subscriber’s request compared to the total remaining subscribed shares.

The company offered 24 million shares (20% of capital), of which 90% and 10% were allocated for institutional and retail investors, respectively.

Retail investors started, on Sept. 19, subscribing to 2.40 million shares of solutions by stc at SAR 151 a share.

A total of 1.04 million retail investors subscribed to 2.40 million shares at a total value of SAR 8.6 billion. 

The retail offering was 2,365% oversubscribed, according to HSBC Saudi Arabia, SNB Capital and Morgan Stanley Saudi Arabia, the IPO financial advisors, lead managers, underwriters and book runners.

The company’s institutional offering was 13,004% oversubscribed, raising SAR 471 billion, as per the following breakdown:

The offered shares were oversubscribed, as per the following breakdown:

1) Saudi companies (which include listed companies, private firms, insurance firms and capital market institutions) (9,507.6%)

2) Public Funds, Private Funds and Discretionary Portfolios (2,395.9%).

3) Non-Saudi investors (908.7%).

4) Government institutions (41.4%).

5) Other investors (151.1%)

The shares allocated for participating categories will be scaled back to 21.6 million shares, or 90% of the offer size. Excess subscription amounts will be refunded by Sept. 29.

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