Saudi Arabia's STC asks banks to pitch for subsidiary IPO

Saudi Telecom Co (STC) has asked banks to pitch for roles in a potential public offering of its products and services development arm, three sources familiar with the matter told Reuters.

STC, Saudi Arabia’s largest telecoms operator, sent a request for proposals to international and local banks last week for STC Solutions (STCS), said the sources, who declined to be identified as the matter is not public.

The company’s valuation could be around 9 billion riyals ($2.4 billion), if it garners 18-20 times its earnings multiples, one of the sources said.

The IPO size could be around $500 million if the company sells 20%, the source said.