PIF Set to Raise as much as SR15.4bln

The Public Investment Fund (PIF) aims to raise, at least SR15.4 billion, before the end of this year, through two initial offerings, in the Saudi stock market, by offering 30% of the shares of the Saudi Tadawul Group, wholly owned by it, whose shares will be listed on Wednesday, in addition to 5% of the shares of the Saudi Telecom Group stc, which it has 70% of its shares, in a secondary subscription, as a part of the fund’s plans to maximize the benefits from its investments.

PIF, widely dubbed as the Saudi sovereign fund, aspire to change some of its investment positions, by offering part of the shares it owns, in the financial market.

The funds that the Public Investment Fund will receive from the offering of 36 million shares of the Saudi Tadawul Group, at a price of SR105 per share, is SR3.78 billion, in addition to SR11.623 billion from the offering of 5% of the shares of the Saudi Telecom Company stc, which began its offered shares’ subscription.

Noteworthy, that the Crown Prince Mohammed bin Salman had stated that every company owned by the Public Investment Fund, recording profits is destined to be listed on the Saudi Stock Exchange (Tadawul), which is among the top 10 financial markets in the world.

That indicates more prospects for the fund’s subsidiaries.

The fund aims to grow to become the largest sovereign fund, in the world, as the fund announced, in January 2021, to adopt its strategy, during the next 5 years (2021-2025), aiming to maximize its assets to reach SR4 trillion by the end of the year 2025.

It is expected that the fund will inject the capital obtained from my subscriptions (Tadawul and stc) into new investments, as the fund was able during the last period to achieve a positive impact on the local economy and maximize sustainable returns.

The fund doubled the size of its assets to about SR1.5 trillion by the end of 2020, and contributed in activating 10 new sectors, and according to the strategy, the fund plans to pump, at least SR150 billion, annually, into the local economy, increasingly, until 2025, and to contribute through its subsidiaries, to the non-oil GDP of as much as SR1.2 trillion, cumulatively.

The Public Investment Fund was able to achieve huge investment and economic achievements, through which it was able to realize important strategic goals, and putting itself in a prominent position on the world map, as a leading sovereign fund capable of investing and managing large capital, in multiple markets.

The fund’s strategy included 5 direct goals, such as maximizing the fund’s assets, launching new sectors, building economic partnerships, and localizing technologies and knowledge.

The pivots of the fund’s strategy included looking into prospects for leadership, in all fields, by harnessing its efforts to redraw sectors, advance innovation, and achieve transformation the economy of the Kingdom.

The process of offering shares of the fund’s subsidiaries, in the Saudi stock market is part of the fund’s work; through its wealth and distinguished human competencies, to harness the energies of the Kingdom to seize the promising opportunities.

It is noteworthy that the Public Investment Fund managed, through its previous strategy (2018-2020), to raise the value of its assets under management to about SR1.5 trillion, compared to SR570 billion, in 2015. The fund also raised the percentage of return to shareholders, to 8% during the years (2018- 2020), compared to 3% for the years (2014-2016), meanwhile the fund created 330,000 direct and indirect jobs, through its multiple investments.

The value of the fund’s local investments within the Kingdom amounted to SR311 billion, while its global investments constituted 20% of the fund’s portfolio.

Since the start of the transformation program, the fund has established and launched 10 sectors, in addition to incepting 30 new companies.