The Public Investment Fund (PIF) offloaded a 2% stake in STC last week in a SAR 3.86 bn transaction, marking the largest such transaction in the Kingdom and the MENA region, it said in a statement. “This transaction is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy,” the statement reads. STC’s share price closed down 2.2% to SAR 40.20 apiece on Thursday.

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The details: The fund sold 100 mn shares to local and international institutional investors in an accelerated bookbuild offering, though details about the buyers remain undisclosed. The transaction was priced at SAR 38.6 per share, and left the fund with a 62% stake in the telecom giant. The transaction was 5x oversubscribed, with 40% of the shares on offer allocated to international investors, Reuters reports, citing a source familiar with the matter. Bloomberg also had the story.

ADVISORS- The sovereign wealth fund tapped Goldman Sachs and Saudi National Bank (SNB) to manage the offering.

The move is the latest in a series of stake sales by the fund, with the most recent being asecond selldown of its stake in Japanese gaming giant Nintendo to now own 6.3%, down from 7.5%. This reflects the fund’s plans to reduce overseas exposure from 30% to 18-20%, to support domestic diversification projects, and encourage co-investment from foreign firms within the Kingdom. It most recently took a majority 54% stake in local broadcaster MBC for SAR 7.5 bn.

ALSO FROM THE PIF- The fund’s ownership of US equities grew to USD 26.7 bn in 3Q 2024, up from USD 20.7 bn the previous quarter, Argaam reports, citing a US Securities and Exchange Commission filing.

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