Tahakom Comprehensive is working with Saudi Fransi Capital on the possible sale of a 30% stake, according to sources
Saudi Arabia’s sovereign wealth fund is weighing an initial public offering of the kingdom’s traffic-management firm, according to people familiar with the matter.
Tahakom Comprehensive is working with Saudi Fransi Capital on the possible sale of a 30% stake, the people said, asking not to be identified as the information is private.
The company, which operates the traffic-monitoring system Saher, is ultimately owned by the Public Investment Fund.
The shares would list on the kingdom’s Tadawul stock exchange, the people said. A final decision hasn’t been made, and the parties may decide not to proceed with the sale or offer a different amount to the public, they said.
The Public Investment Fund is transforming from a sleepy, domestically-focused holding company into a major global investor under a economic reform plan known as Vision 2030.
The fund aims to control more than $2 trillion by that date, and currently has assets of about $290 billion. In addition to making international investments, it’s also developing new domestic industries, and privatizing some state-owned firms.
Saher was launched about 10 years ago as a country-wide system to monitor traffic flow through a network of cameras and radar. It also issues fines.
A spokesman for the Public Investment Fund referred questions to Tahakom, which is formally known as Saudi Technology & Security Comprehensive Control Co. A spokesman for Tahakom confirmed the company was considering an IPO without giving further details.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.