Saudi wealth fund to plan IPO of traffic monitoring firm

Dubai: 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 per cent 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 an economic reform plan known as Vision 2030.

The fund aims to control more than $2 trillion (Dh7.34 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 privatising 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.