Saudi Telecom poised for IPO

Saudi Telecom Company (STC) is to float up to a third of its shares in an initial public offering closed to foreign investors, according to a report by Reuters.

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By  Richard Brown Published  June 20, 2002

Set for October, the IPO will be the country’s largest offering since 1984 and is expected to generate between $3 billion and $4 billion. Proceeds from the sale are destined to help pay down the kingdom’s $168 billion domestic debt.

"This is the crown jewel and won't be open to foreigners. There is still a long way for that to happen," a senior Western banker told Reuters.

The news agency quotes an official from the state-owned STC as saying the flotation will take place in October. Bahrain-based Gulf International Bank (GIB), which has a branch in the Saudi capital Riyadh, is the lead banker behind the floatation.

STC was established in 1998 in advance of the sector’s privatisation.

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