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PIF to sell 10% stake in Saudi stock exchange owner

Entities must be Saudi stock exchange members, derivatives exchange members or their clients to be market makers Reuters/Ahmed Yosri
Entities must be Saudi stock exchange members, derivatives exchange members or their clients to be market makers

Saudi Arabia’s Public Investment Fund (PIF) is selling a 10 percent stake in Saudi Tadawul Group, the owner and operator of the kingdom’s stock exchange, via an accelerated bookbuild offering, according to a regulatory filing on Thursday.

PIF, a sovereign wealth fund with over $600 billion in assets, has hired HSBC and Morgan Stanley to help sell 12 million shares in Tadawul, 10 percent of the company’s issued share capital.

“The offering is in line with PIF’s strategy to recycle its capital and invest in emerging and promising sectors in the local economy,” PIF said in the statement.

The offer price will be determined on Friday and the sale will be executed through off-market negotiated deals before the market opens, it said.

Last month the sovereign wealth fund reported profit of SAR 85.7 billion ($22.81 billion) in 2021, a year-on-year increase of 13 percent.

PIF’s investments in securities classified as assets grew by 29 percent year-on-year to SAR 535.3 billion. Total assets reached about SAR 2.54 trillion, up 23 percent year-on-year.

The fund owns shares in 22 Saudi-listed companies, valued at about SAR 896.17 billion. These include Saudi Telecom Co, Saudi National Bank, Saudi Electricity Co, ACWA Power, Riyad Bank, Alinma Bank, Kingdom Holding Co and Saudi Aramco.