PIF-backed Saudi digital security firm Elm set to raise $818 mln in IPO (updated)

Ximen Mining

30/01/2022 11:49

(Adds detail, background)
    DUBAI, Jan 30 (Reuters) - Saudi Arabian digital security
firm Elm, owned by the kingdom's sovereign wealth fund, is set
to raise 3.07 billion riyals ($818 million) after pricing its
initial public offering at the top of its indicative price
range. 
   Elm on Sunday priced the deal at 128 riyals a share, against
an indicative price of 113 to 128 riyals per share. It is
selling 24 million shares in the deal or 30% of its share
capital.
    Elm provides secure e-business services and information
technology, as well as project support services and government
project outsourcing in Saudi Arabia, according to its website.
    Saudi Arabia has had a surge in IPOs since it listed oil
giant Saudi Aramco  2222.SE  in a record $29.4 billion listing
in 2019.
    Saudi Arabia is also encouraging more family-owned companies
to list in a bid to deepen its capital markets under a reform
push aimed at cutting the kingdom’s reliance on oil revenues.
    The sale of Elm's stake by the $480 billion Public
Investment Fund is another move by the fund to monetise some of
its assets through the equity capital market. In December, it
raised $3.2 billion through the sale of a 6% stake in Saudi
Telecom  7010.SE  in a secondary share offering. 
    The country's bourse operator Tadawul, which is also partly
owned by the PIF, listed last year in a $1.01 billion IPO.
    Tadawul said in December it had 50 applications from
companies for IPOs this year and is considering whether to allow
blank-cheque companies, known as SPACs, to list.  urn:newsml:reuters.com:*:nL1N2ST0KL
    
    ($1 = 3.7515 riyals)

 (Reporting by Saeed Azhar; Editing by William Mallard and
Raissa Kasolowsky)
 ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters
Messaging: saeed.azhar.reuters.com@reuters.net))