Arabian Internet and Communications Services company, or STC Solutions, said it plans to sell 24 million shares, representing 20 per cent of its share capital, through an initial public offering.
The kingdom's Capital Markets Authority approved an application from the company regarding its IPO offering, the market regulator said in a statement on Monday.
The company will publish the prospectus well before the IPO and list all relevant information, including STC Solutions' financial statements, activities and management.
The approval is valid for six months from June 28 and will be cancelled if the offering and listing of the shares are not completed within this period, the regulator said.
STC Solutions provides a number of services related to internet connectivity, cyber security integration and cloud services. The company has more than 25,000 clients across 35 cities, according to its website.
Separately, the CMA also approved the Arabian Contracting Services Company's application for an IPO.
The offering includes 15 million shares representing 30 per cent of the company’s share capital, according to the market regulator.
The IPO market in the Mena region got off to a "slower-than-expected" start during the first three months of the year, with three company listings raising $295 million, compared with four companies raising $814m in the same quarter last year, consultancy EY said earlier this month.
In Saudi Arabia, Alkhorayef Water & Power Technologies raised $144m and Theeb Rent a Car raised $138m – both sold 30 per cent of their shares on the Tadawul stock market.
Oman Reit, a real estate investment trust, raised $13.2m on the Muscat Stock Exchange.
“As we look at the remainder of 2021 and beyond, there are many reasons to be optimistic about the coming quarters ahead," said Gregory Hughes, EY Mena's IPO and transaction diligence head.
"A strong IPO pipeline in key Mena markets across sectors, coupled with various government initiatives to deepen the capital markets, particularly in Saudi Arabia and the UAE, should help bring more IPOs to markets in the region."
On Sunday, Tanmiah Food Company, a Saudi producer of meat and poultry products, also said it plans to list on Tadawul. It is offering six million shares, or 30 per cent of the company, and set a price range of 59 Saudi riyals to 67 riyals a share.