The Saudi government has commissioned the Saudi British Bank (SABB) to be the lead manager for the initial public offering (IPO) of the Saudi Telecommunications Company (STC). The IPO is scheduled to come into effect on December 10, reported Reuters. Some 30 percent of STC’s shares worth $960 million will be available for purchase.
Bahrain’s Gulf International Bank (GIB) has been selected as chief advisor of the IPO. The Saudi government began the telecom privatization process by passing control of the national services to the joint stock STC. Gradually taking over from the Ministry of Post, Telephone and Telegraph (PTT), STC carried out major telecommunication projects kingdom-wide, while treading a path that would eventually enable it to operate on a commercially competitive basis.
SABB was established in 1978 as a Joint Stock Company. The Bank formally commenced operations with the taking over the British Bank of the Middle East in Saudi Arabia. The bank recorded a net profit of 830 million Saudi Riyals ($221 million) in 2001, up from SR87 million ($23 million) in 2000.
The Riyadh-based bank operates through a network of 81 locations, which includes a branch in London and 13 women branches. SABB is a 40 percent indirectly held associate of HSBC Holdings, one of the world's largest banking and financial organizations. The remainder is held by Saudi investors. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
