Saudi Arabia’s Public Investment Fund (PIF) has sold part of its stake in Saudi Telecom Co. (STC), marking a major move to generate funds for the kingdom’s Vision 2030 program. The PIF sold 100 million shares, equivalent to a 2% stake in STC, for about $1 billion, pricing each share at 38.6 riyals ($10.27). This is a 6% discount from STC’s closing price of 41.1 riyals on Wednesday.
This strategic sale aligns with PIF’s plan to support the kingdom’s shift away from oil dependence and diversify its economy. Recently, the PIF also reduced its holdings in Nintendo Co. and tapped into bond markets, indicating a steady approach to boosting liquidity amid weak oil prices that have driven the nation’s budget into a deficit.
Apart from STC, PIF holds stakes in a diverse portfolio of Saudi companies, including Acwa Power, Saudi Tadawul, and Saudi Arabian Mining. The fund also has investments in leading financial institutions like Saudi National Bank and Riyad Bank.
Although secondary offerings are rare in the region, this is the second time PIF has reduced its holdings in STC, following a similar sale in 2021 that raised $3.2 billion. Post-sale, PIF remains STC’s largest shareholder with a 62% stake, as Goldman Sachs and SNB Capital jointly handled the sale.
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