#Saudi Wealth Fund to Raise Up to $3.1 Billion in STC Sale - Bloomberg

Saudi Wealth Fund to Raise Up to $3.1 Billion in STC Sale - Bloomberg

Saudi Arabia’s sovereign wealth fund is set to raise as much as $3.1 billion through the sale of shares in Saudi Telecom Co. as it looks to fund a huge investment program to diversify the oil-dependent economy.

The Public Investment Fund will sell a 5% stake in STC, as the Middle East’s most profitable mobile-phone operator is known, through a secondary offering starting Dec. 5, according to a statement to the stock exchange. A total of 100 million shares will be offered at between 100 riyals ($26.70) to 116 riyals.

The shares are offered at a discount to Sunday’s closing price of 116.20 riyals. The stock has climbed 9.6% this year, compared with the 28% gain in the Tadawul All Share Index.

Saudi Arabia’s sovereign wealth fund is one of the main vehicles for Crown Prince Mohammed Bin Salman’s plans to diversify the Saudi economy away from oil. It’s previously said it would invest about $40 billion in the domestic economy a year until 2025.