Tuesday, 18 June 2024

Exclusive: Saudi wealth fund to sell share in a bank and basic materials company

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Saudi Sovereign Wealth Fund, the Public Investment Fund (PIF) is in the process of selling a share of its shares in two companies listed on the Saudi Stock Market “Tadawul”, including a company in the banking sector, and another in the basic materials sector, informed sources told “Maaal”.

The intention of the Public Investment Fund to sell part of its stake in two companies whose shares are traded in the Stock Market comes within the strategy of the PIF 2021-2025, which aims to rotate capital by selling shares in companies owned by the PIF, in order to reinvest the proceeds in developing new and promising sectors in the local economy.

The Public Investment Fund owns stakes in 21 joint stock companies of the “Tadawul” companies, which in terms of quantity exceeds 5% of the shares of each of these companies, in addition to its ownership percentage in Saudi oil giant Aramco, which amounts to 4%.

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The sources did not clarify the number of shares that the Public Investment Fund intends to sell, the date of the sale, or the value expected to be obtained from the expected sale.

The expected step comes after the Public Investment Fund sold earlier 120 million shares in the Saudi Telecom Company (stc), which is equivalent to 6% of the (stc) capital, to earn SR12 billion at the time, after it sold one share at a value of SR100.

This is the largest deal in the Saudi Stock Market since the initial public offering of “Saudi Aramco,” as well as the largest secondary public offering in Central and Eastern Europe, the Middle East, and Africa in about 10 years.

According to data monitoring conducted by Maaal newspaper, the Public Investment Fund owns 21.1 billion shares in 22 companies listed on the Saudi Stock Market “Tadawul”, whose market value exceeds SR905.2 billion, based on the latest closing.

PIF is one of the largest and most impactful sovereign wealth funds in the world. As of the end of Q1 2022, its Assets under Management had reached approximately $620 billion, across a diversified portfolio spanning 13 strategic sectors in Saudi Arabia and globally. Since 2017, the Fund has established 54 companies and created, directly and indirectly, more than half a million jobs as of the end of 2021. PIF plays a leading role in advancing Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the world economy.

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