The Scoop
Saudi Arabia’s Public Investment Fund has appointed Morgan Stanley and Riyad Capital as advisers on an initial public offering of a wholly owned cybersecurity firm, Saudi Information Technology Co. (SITE), according to three people familiar with the matter.The listing, expected next year, is part of PIF’s strategy to monetize investments in mature companies it owns and help expand the range of industries represented on the local stock exchange.
PIF and Morgan Stanley declined to comment. Riyad Capital didn’t respond to requests for comment.
Know More
Saudi Arabia has been among the Gulf’s most active IPO markets as the government looks to privatize state-owned assets and companies seek to tap investor demand. Although the pace has slowed in recent months, the pipeline remains strong.
The kingdom’s $1 trillion sovereign wealth fund is the main vehicle for delivering Crown Prince Mohammed Bin Salman’s Vision 2030 plan for transforming the Saudi economy. A key pillar of the strategy is to build business in new sectors, scale and list them, and recycle the proceeds into new endeavors.
Notable
- IPOs in the Gulf region raised $2.3 billion in the second quarter of the year, a slight decrease from a year earlier, PwC said in a report.
- Saudi regulators are introducing market reforms, including removing restrictions on foreign investors, to lift stock prices that have been underperforming emerging market peers, Bloomberg reported.