STC asks banks to pitch for subsidiary IPO

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

STC, Saudi Arabia's largest telecoms operator, sent a request for proposals to international and local banks last week for STC Solutions (STCS), sources were quoted as saying in a Reuters report.

The company's valuation could be around SR9 billion ($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.

The report said the STC did not respond to a request for immediate comment when approached. — SG