STC Solutions Spin-Off

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  • #121222

    Bander Dhubaiban
    Participant

    STC, one of Saudi Telecoms, has recently announced that it is going to file for an IPO for one of it subsidiaries namely STC Solutions.

    Solutions provides communications and information technology, information technology management services and digital services to more than 24,000 clients across the public and private sectors, including many major governmental entities.
    Solutions generates around $ 200M according to some estimates and growing… It is believed to be be very profitable as well; prospectus is yet to be published thou.

    My first question is why would STC pursue such spin-off or curve out?

    My second question is what are the key success factors for such divestiture?

    Interested to hear your thoughts…

    #121260

    @dhubaibm – Interesting set of questions. Not sure anyone on this site would have the true answers you are seeking. These are questions best asked of the company itself and people with more direct knowledge of the transactions. Some reasons why a company may pursue such a spin-off or carve out are typically aligned with organizational strategy or potential governmental regulatory concerns (monopolies, conflicts of interest, etc.). Success factors of such a divestiture would also be aligned with the thesis for the transaction, so again, questions best asked of the company rather than solicitation of speculative responses on this forum.

    Have you tried to connect with people from the company – email, phone, social media (i.e. LinkedIn)? How about contacting their investor relations department? Have they publicly shared any information with news media outlets reporting this pending IPO/spin-off/carve out? Perhaps some information may be found through these resources too that may shed some light on your question.

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