Saudi MTC granted licence, promises IPO

12 Jun 2007

The winner of Saudi Arabia’s third national mobile licence has been officially awarded its concession. The consortium led by MTC of Kuwait won the licence in March with a bid of USD6.11 billion. The consortium, which has been set up under the name SMTC, has pledged to sell 700 million shares, or 50% of its capital, within 30 days, Menafn reports. A 10% tranche will be allocated to the Pension Fund and another 10% will go to the General Organization for Social Insurance (GOSI); the remaining 30% stake will be sold via an initial public offering. SMTC plans to invest between USD6 billion and USD8 billion over the next five years. Its first services are expected to be launched in early 2008.

Saudi Arabia, Zain Group, Zain Saudi Arabia