Saudi PIF-owned digital security firm said to hire IPO adviser

RIYADH: A digital security firm owned by Saudi Arabia’s Public Investment Fund (PIF) has hired Riyad Capital to advise on a possible IPO, Bloomberg reported.
Digital security firm Elm has hired Riyad Capital to advise on the share sale that could value the company at about $2 billion, according to people familiar with the matter.
The IPO could see the PIF selling off a stake of up to 30 percent, the people said, asking not to be identified as the information is private.
Elm is aiming to complete the sale of shares on the Saudi stock exchange by next year, Bloomberg said.
Deliberations are at an early stage, and details of the offering could change.
State-controlled firms in Saudi Arabia are increasingly looking at ways to take advantage of soaring investor demand for new offerings while also raising money to help fund efforts to diversify the economy away from oil.
Two other PIF companies — stock exchange Tadawul and Acwa Power — are both expected to sell shares on the Saudi bourse this year, while Saudi Telecoms Co. and Saudi Basic Industries Corp. are planning to offer stakes in subsidiaries, Bloomberg said.