DUBAI, Oct 25 (Reuters) - Saudi Telecom Co (STC)
has hired banks to arrange a potential initial sale of shares in
its product and services development arm, Solutions by STC,
three sources familiar with the matter told Reuters.
STC, Saudi Arabia's largest telecoms operator, has appointed
HSBC, Morgan Stanley and the investment banking
arm of Saudi lender National Commercial Bank to advise
on the sale, according to the sources, who declined to be
identified as the matter is not public.
STC and NCB Capital did not immediately respond to requests
for comment when contacted by Reuters on Sunday. HSBC and Morgan
Stanley declined to comment.
Solutions by STC's valuation could be around 9 billion
riyals , if it garners 18-20 times its earnings
multiples, a source told Reuters last month.
The IPO size could be around $500 million if the company
sells 20%, Reuters reported on Sept. 15.
Saudi Arabia has seen a flurry of public offerings this year
as companies tap into Saudi demand for shares since oil giant
Aramco's record IPO last year.
The country, the world's No. 1 oil exporter, is encouraging
more companies to list in a bid to deepen its capital markets
under reforms aimed at reducing its reliance on crude.
(Reporting by Hadeel Al Sayegh and Saeed Azhar; Editing by
Catherine Evans/Mark Heinrich/Susan Fenton)