PIF raises SR6.1 bln from 40% sale of “Tadawul” shares in a year‎

The Public Investment Fund’s announcement today revealed the completion of the process of building a book of orders by institutions to buy 10% (12 million shares) in the Saudi Tadawul Group Holding Company (Tadawul) at a price of 191 riyals per share. The fund raised an amount of 6.1 billion riyals by selling  40% of “Tadawul” shares through two separate offerings, the latest of which was today and the first one a year ago (November 2021) after it was sold at that time, 30% of the shares of the company that runs the largest financial market in the Middle East.

According to today’s announcement, and by comparing the price of the two offerings, the difference between the price of the first offering (30% of the company’s shares) and the second offering (10% of the shares) is about 82%, an increase in the share value in favor of today’s offering.

According to the data, the Public Investment Fund sold on November 20, 2021 a 30% stake, equivalent to (36 million shares) of the 120 million shares of the Saudi Tadawul Holding Group, in a public offering at a price of 105 riyals per share, with a total value of about SR 3.6 billion. After the two offerings, the ownership of the PIF in the Tadawul Group will be stable at 60%

The policy of the Fund in dealing with shares of owned companies reflects high professionalism in offering and choosing the appropriate timing, which contributed to the increase in the selling price within one year by about 82% from 105 riyals per share to 191 riyals, although the last sale price was less than The closing price of the last trading day (last Thursday) increased by 9.8%, as the share recorded in the last trading days of the week closing at a price of 209.6 riyals per share.

The deal to sell the last 10% of the shares of the Tadawul Holding Group will be completed next Sunday outside the market through the Negotiated Deal, as the offering was successfully covered by investors from local and foreign institutions.

During the past few years, the Fund succeeded in establishing a number of fully owned companies with the aim of developing new sectors and supporting emerging sectors for a prosperous economy that achieves Saudi Vision 2030.

The Public Investment Fund is ranked sixth globally among the largest sovereign funds in the world, with total assets of $607.4 billion (2.28 trillion riyals). It ranked fifth in the world by the end of this year

The assets of the Public Investment Fund jumped about 300%, equivalent to $455.4 billion, during the first 6 years of implementing the Kingdom’s Vision 2030, bringing the fund’s total assets to $607.4 billion, equivalent to 2.28 trillion riyals, before the end of 2022, while it was at $152 billion (570 billion riyals) by the end of 2015 before the launch of “Saudi Vision 2030”.

The fund intends to raise its assets 567% by the end of 2030 to ten trillion riyals, or about $2.7 trillion, to be on the top of sovereign funds.