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- Anticipated listing next year
- Morgan Stanley and Riyad Capital appointed as advisers
- Unit specializes in cybersecurity and cloud solutions
According to a report, Saudi Arabia’s Public Investment Fund (PIF) has engaged advisers to facilitate the upcoming initial public offering of its fully owned cybersecurity subsidiary, Saudi Information Technology Co (Site).
The sovereign wealth fund has selected Morgan Stanley and Riyad Capital to serve as advisers for this potential listing, as reported by the news website Semafor.
The listing is projected for next year, according to the report.
Founded in 2017, Site provides services such as cybersecurity, cloud computing, and systems integration, as detailed on PIF’s website.
In July, PIF reported a 60 percent decline in profits year-on-year, amounting to SAR26 billion ($7 billion) for 2024, attributing the downturn to high interest rates and inflation.
This week, the Saudi Capital Market Authority called for input on initiatives to create simplified investment funds aimed at bolstering the asset management sector and generating “more investment opportunities for all investors.”
The market regulator previously sought comments on measures to lower entry barriers for foreign investors. In late September, the Tadawul main market surged 5 percent following news that foreign investors could acquire larger stakes in Saudi-listed companies.
Further reading:
As of October 8, the Saudi Stock Exchange’s main index has declined nearly 4 percent year-to-date, having gained 0.6 percent last year. In contrast, the main Dubai index has increased by 15 percent this year.
Despite the market downturn amid reduced oil revenues and spending cuts, companies have collectively raised $3.3 billion through listings on the Saudi exchange this year.
Last year, IPOs generated $4.1 billion, the highest total for any year excluding Saudi Aramco’s historic $29 billion offering.
