STC says Solutions to go public in 2021, flags possible IPO of STC Pay

STC Group will float Solutions in an initial public offering (IPO) next year, CEO Nasser Al-Nasser told Al-Arabiya TV.  

No decision has yet been taken on the percentage of the stake sale, as this is subject to various considerations, Al-Nasser said, adding the telecom operator is still in the initial stages and is waiting for the board of directors and regulatory authorities’ approval.  

Last month, Reuters reported that STC hired HSBC, Morgan Stanley and NCB Capital to advise on the sale of Solutions, according to the data available on Argaam. 

Answering a question about the potential share sale of STC Pay in a public offering, Al-Nasser said many entities have shown interest in the company’s share sale. However, the group is focusing now on using proceeds from selling 15% of the unit to develop the company and pursue its expansions.  

The decision of offering STC Pay to the public will depend on the feasibility study results, Al-Nasser added, flagging the possible sale of STC Pay a public offering, if it is feasible. 

STC Group signed an agreement to sell a 15% stake in STC Pay, its fully-owned subsidiary, to Western Union for $200 million (SAR 750 million), Argaam reported.