Saudi Wealth Fund PIF Raises $1 Bln From STC Stake Sale

Riyadh, November 14, 2024 (Saudi Arabia Breaking News) -   Saudi Arabia’s sovereign wealth fund PIF has raised 3.86 billion riyals ($1.03 billion) from selling a 2% stake in telecoms firm STC, PIF said on Thursday, as it seeks to raise funds for the Gulf country’s economic diversification programme.

The final price for the sale of the 100 million shares was set at 38.6 riyals ($10.27) per share, about a 6.1% discount to STC’s closing price of 41.1 riyals on Wednesday, according to Reuters’ calculations.

“This transaction is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy” it said.

The wealth fund, which has nearly $1 trillion in assets under management, is the main engine of Crown Prince Mohammed bin Salman’s strategy to wean the Saudi economy off its dependence on the oil that made it one of the world’s richest nations.

The plan, known as “Vision 2030”, aims to develop new sectors and create more sustainable revenue streams.

However, the world’s top oil exporter has had to rein in some of its ambitions over the past year as low oil prices and production hit an economy still heavily reliant on hydrocarbon revenues.

As part of a review, the kingdom has scaled back lofty ambitions for its NEOM mega-project – a Red Sea urban and industrial development nearly the size of Belgium – to prioritize completing elements essential to hosting global sporting events over the next decade as rising costs weight, Reuters reported on Wednesday, citing sources.

The report followed the sudden departure of the project’s long-time CEO Nadhmi al – Nasr.

[REUTERS]