DUBAI, Nov 13 (Reuters) - Saudi Arabia's sovereign

wealth fund PIF has hired Goldman Sachs and Saudi National Bank

to sell around a 2% stake in the country's telecom

group STC in a deal that could raise up to $1.1

billion, according to a statement from the banks.

The price of the shares will be determined through an

accelerated book building process, the banks said. PIF did not

immediately respond to a request for comment.

PIF, which sold 6% of STC for $3.2 billion in 2021, will

keep a 62% stake in the telecoms group after the offering, whose

final results will be announced on Thursday. STC will not

receive any proceeds, the banks added.

The wealth fund, which has nearly $1 trillion in assets

under management, has been among the most active debt issuers in

the Gulf this year to raise funds as Saudi Arabia pushes ahead

with its economic transformation plan.

The economic blueprint, known as "Vision 2030", aims to wean

the economy away from oil with investments to develop new

sectors and create more sustainable revenue streams.

However, amid lower oil prices and production that have hit

the government's earnings, the kingdom has begun a spending

review under which some projects will be delayed or scaled back,

and others prioritised.

PIF's governor said last month the wealth fund was planning

to cut its overseas investments by about a third. It has cut its

stake in Japan's Nintendo ( NTDOF ) to 6.3% from 7.5%, according

to a regulatory filing on Wednesday.

STC's shares have risen 4.45% year to date and closed down

0.4% to 41.1 riyals ($10.94) apiece on Wednesday.

($1 = 3.7573 riyals)