SITC IPO more than twice oversubscribed

Operator is to use the IPO proceeds to pay off license fees, says a Reuters report.

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Saudi Integrated Telecommunications Co, a fixed-line operator in KSA, has seen its SR300 million ($80 million) initial public offering oversubscribed more than twice, according to official figures quoted by Arab News. AlBilad Investment Co, SITC’s financial adviser and IPO lead manager, said that the IPO has raised SR880.7 million ($234.8 million).

Fahad Al-Enezy, acting CEO of AlBilad Investment Co, said the allocation of shares has been completed and approved by the Capital Market Authority (CMA), according to the subscription allocation schedule.

The total number of subscribers has reached 1,100,302 with a coverage percentage of 294%.

Last week, a Reuters report quoted a top SITC official saying that the IPO subscription proceeds are to be used to pay off licence fees.

SITC had offered 30 million shares, or 30% of its capital, at SR10 each to Saudi investors and the subscription closed on May 8. Another 5 million shares were allocated to the General Organization for Social Insurance.

The final allocation of shares and surplus refund to all subscribers will take place on Saturday, after all the participating banks have completed the auditing and settlement processes of the IPO that ended on Sunday, according to Arab News.

SITC, which offers broadband, interconnection and satellite services for businesses, consumers and wholesale operators, is part of Saudi Arabian conglomerate, Al Mawarid Group.

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