Who Owns Saudi Telecom Company?

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Who owns Saudi Telecom Company?

In December 2022 the Public Investment Fund sold 120 million stc shares (~6.0%) in a SAR 12 billion secondary, expanding free float while keeping PIF as the controlling shareholder. stc has since evolved into a digital champion central to Vision 2030.

stc, founded in 1998 and rebranded in 2019, reported 2024 group revenues in the SAR 72–76 billion range, with growth in cloud, data centers, fintech, IoT and cybersecurity. Major ownership remains with the sovereign PIF alongside institutional and retail holders via Tadawul; see Saudi Telecom Porter's Five Forces Analysis.

stc was established by Royal Decree in 1998 as a state-owned joint stock company carved out from the Ministry of Post, Telegraph and Telephone; at inception the Government of Saudi Arabia held 100% ownership through the Ministry of Finance before oversight moved to state investment bodies.

State creation by Royal Decree

Founded in 1998 by Royal Decree as a state entity, not by private founders or venture investors.

100% government ownership at launch

The Ministry of Finance initially held full equity; the company operated as national infrastructure under state stewardship.

No private founders or angel rounds

There were no angel investors, friends-and-family rounds, or private vesting arrangements during 1998–2002.

Policy-driven governance

Governance centered on national priorities: nationwide connectivity, universal service, and modernization.

Early reorganizations were governmental

Initial restructuring involved government entities preparing for partial privatization rather than private buyouts or disputes.

Transition toward partial privatization

Initial public participation occurred years after founding; control provisions mirrored state objectives rather than founder equity splits.

Early ownership history explains why questions like who owns Saudi Telecom Company and STC shareholders trace back to state entities and later staged public listings and transfers to investment arms such as sovereign funds preparing for market participation; see the company’s privatization context in the Marketing Strategy of Saudi Telecom article.

Key facts about founders and early ownership

Founders and early ownership reflect state-led establishment and later phased privatization steps.

• Established by Royal Decree in 1998 from the Ministry of Post, Telegraph and Telephone.
• Government of Saudi Arabia held 100% ownership at inception via the Ministry of Finance.
• No private founders, angel rounds, or private vesting during the formative phase (1998–2002).
• Early reorganizations and control provisions were policy-driven, aimed at preparing for eventual public participation and partial privatization.

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Key events reshaping Saudi Telecom Company ownership include the 2003 Tadawul listing that floated roughly 30%, the 2019 rebrand and asset carve-outs (TAWAL, stc pay) that shifted the investor narrative, and the December 2022 PIF secondary sale of 6.0% (120 million shares) which materially increased free float while PIF retained control.

By 2024–2025 the ownership mix shows a dominant sovereign anchor with growing institutional participation: PIF as controlling shareholder, a materially larger public/free float, and widespread holdings among domestic pension funds, regional managers, and global index funds.

Major shareholders and evolution

Ownership now balances sovereign control with enhanced market liquidity and institutional depth, supporting strategic capital recycling into towers, data centers and cloud.

• Public Investment Fund (PIF): controlling shareholder, circa 64–70% post‑2022 sell‑down
• Public/free float: circa 30–36% — Saudi and foreign institutional investors plus retail
• Index funds, ETFs and regional asset managers increased holdings after TASI/MSCI inclusion
• No dual‑class shares or disclosed private PE/VC control at the parent level

For deeper strategic context and how ownership influenced growth moves, see Growth Strategy of Saudi Telecom

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stc’s board combines Public Investment Fund-aligned representatives, independent directors and senior executives; the chair has been PIF-affiliated in recent cycles and board committees cover audit, risk, nomination and remuneration, with independents supplying sector, technology and finance expertise.

stc operates on a one-share-one-vote basis with ordinary shares listed on Tadawul; there are no reported dual-class or golden shares, and PIF’s majority stake delivers de facto control over director appointments, dividend policy and major strategic transactions within Saudi corporate governance and CMA constraints.

Board and Voting Snapshot

Key governance features and voting dynamics shaping Saudi Telecom Company ownership and control.

• PIF holds the largest reported stake, enabling decisive board influence and strategic control
• One-share-one-vote structure; ordinary shares traded on Tadawul
• Independent directors strengthen oversight on capital allocation and ESG
• Post-2022 higher free float led to greater institutional focus on dividends, capex and infrastructure monetization

As of 2025 data, PIF’s stake in Saudi Telecom Company is commonly reported around 64% of total shares consolidated via direct and affiliated holdings, while publicly tradable free float increased after the IPO and block trades to roughly 36%; institutional investors, both domestic and foreign, now push on capital allocation (dividend yield vs. growth capex) and transparency—see a concise ownership timeline in this Brief History of Saudi Telecom.

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stc’s ownership has trended toward a larger, more liquid public float since PIF’s 2022 secondary sell‑down; sovereign control remains via the Public Investment Fund while institutional and passive investors have increased their stakes through index inclusion and rising TASI weights.

Ownership dynamics reflect sovereign stewardship combined with market discipline: PIF retains a controlling anchor while public and institutional shareholders—including rising passive funds—provide liquidity, governance pressure and capital market valuation signals.

2022 PIF sell‑down

PIF sold approximately 6% in 2022, materially increasing free float and enabling higher foreign investor participation and larger index weights.

Dividend policy

stc has maintained regular ordinary dividends and added supplemental payouts in recent years, reflecting robust cash flows from core services and digital adjacencies.

TAWAL & data centers

TAWAL’s expansion and a multi‑billion SAR data center program (targeting over 1 GW capacity this decade) have drawn infrastructure investors at the asset level.

Marketization & governance

MSCI and S&P inclusion plus higher TASI weighting have increased passive ownership, improving market governance while PIF’s stake ensures long‑term strategic alignment.

For context on stc’s purpose and strategic priorities see Mission, Vision & Core Values of Saudi Telecom

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