(Bloomberg) — Saudi Telecom Co.’s internet-services unit surged on its trading debut in Riyadh after drawing $126 billion in orders for its initial public offering.
Arabian Internet and Communications Services Co., also known as solutions by stc, jumped to 196.20 riyals, hitting the Saudi exchange’s 30% daily trading limit. The company sold shares at 151 riyals apiece, at the top end of its offering range, valuing the company at 18.1 billion riyals ($4.8 billion).
Investors placed bids in the IPO for 130 times the shares on offer, generating more orders than Saudi Aramco’s share sale. solutions by stc raised $966 million by selling 24 million shares, or a 20% stake.
Al Rajhi Capital initiated coverage on the stock with an overweight rating and a price target of 200 riyals. The information and communications technology sector has strong visibility for growth in Saudi Arabia, allowing for market share gains for solutions by stc, Al Rajhi’s Mazen Al-Sudairi and Pritish Devassy wrote in a note.
Hottest Market
Riyadh has been the hottest market for IPOs in the Middle East over the past years, though Abu Dhabi is catching up.
ACWA Power International, one of the kingdom’s main vehicles for building renewable energy projects, on Tuesday priced its IPO at the top end of an original range, seeking to raise $1.2 billion. It is set to be the biggest offering in Riyadh since Saudi Aramco’s listing in 2019.
Plenty more IPOs are in the pipeline, including the stock exchange itself, the specialty chemicals business of Saudi Basic Industries Corp. and cargo firm Saudi Arabian Logistics Co.
(Updates with market value and adds Al Rajhi coverage.)
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