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Wed 22 May 2019 10:45 AM

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Saudi wealth fund mulls IPO of traffic-management firm

Tahakom Comprehensive is working with Saudi Fransi Capital on the possible sale of a 30% stake, according to sources

Saudi wealth fund mulls IPO of traffic-management firm
The shares would list on the kingdom’s Tadawul stock exchange.

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.

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