Riyadh – Mubasher: Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF), is considering an initial public offering (IPO) of its Elm Information Security Company, Reuters reported citing sources familiar with the matter as saying.

Recently, the $300 billion PIF asked banks to come up with proposals on how to proceed with a sale of Elm shares to the public, though no information regarding how big the deal would be was announced.

PIF plans to sell up to 30% of Elm, which it fully owns, through an IPO in a mid-sized deal, a source explained, adding that investors should expect more of an exit strategy by the fund over the coming period.

According to a second source, “The sovereign wealth fund’s request for proposal (RFP) had asked banks to submit a bid bond, a debt instrument secured by a bidder, and a performance bond, which is a bond issued by a bank or other financial institution.”

No deal is likely to take place before next year, the first source and a third source said.

Earlier, the fund confirmed that it is neither planning for nor even considering a margin loan backed by its investment in SoftBank Group Corporation's Vision Fund.