The Saudi Telecom Company – STC – announced the signing of a partnership agreement with the Public Investment Fund to establish a limited liability company specialized in the field of the Internet of Things, which is in line with the expected growth and the increasing demand for Internet services and products, and in line with As well as with the growth strategy of the company and will be headquartered in Saudi Arabia.
The capital of the new company is 492 million Saudi riyals upon incorporation, and each party’s share is 50% of the capital.
STC will self-finance its share of this investment, amounting to 246 million riyals, from the company’s sources. The agreement allows the possibility of increasing the capital of the new company to reach a total of 900 million riyals, as needed, and based on the requirements of the new company, by the end of the third fiscal year after incorporation, and it will be subject to approvals from the competent and regulatory authorities.
The contribution of both parties will be according to their ownership percentage in the capital. The financial impact of the new company is expected to be positive on STC. The project depends on obtaining the necessary regulatory approvals and completing the terms of the partnership agreement to establish the new company and start its commercial operation.