Dubai: Saudi Telecom Co (STC) has hired banks to arrange a potential initial sale of shares in its products and services development arm, Solutions by STC, three sources familiar with the matter told Reuters.

STC, Saudi Arabia’s largest telecoms operator, has appointed HSBC, Morgan Stanley and the investment banking arm of Saudi lender National Commercial Bank to advise on the sale, according to the sources, who declined to be identified as the matter is not public.

STC, HSBC, Morgan Stanley and NCB Capital did not immediately respond to requests for comment when contacted by Reuters on Sunday.

Solutions by STC’s valuation could be around 9 billion riyals ($2.4 billion), if it garners 18-20 times its earnings multiples, a source told Reuters last month.

The IPO size could be around $500 million if the company sells 20%, Reuters reported on Sept. 15.

Saudi Arabia has witnessed a flurry of public offerings this year as companies tap into Saudi demand for shares since oil giant Aramco’s record IPO last year.

The country, the world’s No. 1 oil exporter, is encouraging more companies to list in a bid to deepen its capital markets under reforms aimed at reducing its reliance on crude.