#SaudiArabia’s PIF Said to Explore Tech Unit IPO - Bloomberg

Saudi Arabia’s PIF Said to Explore Tech Unit IPO - Bloomberg

Saudi Arabia’s Public Investment Fund is exploring an initial public offering of a wholly-owned technology firm, according to people familiar with the matter, as the kingdom steps up efforts to raise cash for its economic diversification drive.

Banks have been invited to pitch for roles on a potential share sale of Saudi Information Technology Co., or SITE, the people said, asking not to be named discussing private information. The deliberations are at an early stage and details such as the size and timing of the offer are still under discussion, the people said.

A representative for the PIF declined to comment.

The sovereign wealth fund is the main vehicle for Crown Prince Mohammed bin Salman’s Vision 2030, a plan expected to cost nearly $2 trillion. Technology is a key pillar in that effort to reduce the Saudi economy’s reliance on oil.

The kingdom’s tech ambitions were underscored earlier this month during a visit by US President Donald Trump. Saudi Arabia launched Humain, a new PIF-backed company focused on artificial intelligence software and infrastructure. Meanwhile, Nvidia Corp. and Advanced Micro Devices Inc. announced plans to supply semiconductors to Humain for a major data center project.

Saudi Arabia’s finances are under pressure from lower oil prices. Goldman Sachs Group Inc. recently warned the budget deficit could balloon to $67 billion.

The PIF is leaning on asset sales to help finance Vision 2030’s sweeping initiatives. In addition to SITE, the fund is also preparing listings for a medical procurement company, a port operator and a district cooling firm. Prince Mohammed has previously said the PIF should divest some of its holdings as they mature as a way to finance new investments.

Debt markets are another key funding source. The Saudi government, the PIF and its subsidiaries have raised about $23 billion through bond sales so far this year. State-backed oil giant Aramco also tapped the market for $5 billion earlier this week.

SITE, founded in 2017, offers services including cybersecurity, cloud computing and systems integration, according to the wealth fund’s website.