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Alkhabeer Capital Successfully Concludes Initial Public Offering of “Alkhabeer Diversified Income Traded Fund”

30 December 2020

Alkhabeer Capital Successfully Concludes Initial Public Offering of “Alkhabeer Diversified Income Traded Fund”

  • Alkhabeer Diversified Income Traded Fund attracted more than 89,000 subscribers, with a net value of SAR 472.8 million.
  • The Fund, first of its kind in the region, aims to provide investors with a diversified portfolio of income-generating investments.
  • The Fund’s units will be listed on the Saudi Stock Exchange, Tadawul, by 21 January 2021.

Jeddah, Saudi Arabia – 30 December 2020: Alkhabeer Capital, the asset manager specializing in Shari’a-compliant investments and financial services, announced the successful conclusion of the initial public offering of its “Alkhabeer Diversified Income Traded Fund” units, the first Fund of its kind in the region.

The Fund’s IPO began on Sunday, 6 December 2020 corresponding to 21 Rabi Al Thani 1442, concluding on Thursday, 24 December 2020 corresponding to 9 Jumada Al Awwal 1442. During the IPO period of 15 Business days, the Fund has attracted more than 89,000 individuals and institutional investors, with a net subscription value of SAR 472.8 million, as the coverage ratio exceeded 157% of the minimum Fund’s size.

Commenting on this achievement, Ahmed Saud Ghouth, CEO of Alkhabeer Capital, said: “We are pleased with the success of the Fund during its initial public offering and the interest it has witnessed from individual and institutional investors” He added: “The Fund will provide investment opportunities in various assets with the aim of achieving periodic income for the investors.”

According to the Fund’s terms and conditions, allocation of the full required shares will take place within 10 Business days of the conclusion of the offering period, no later than 7 January 2021 corresponding to 23 Jumada Al Awwal 1442. The Fund’s units will be listed on the Saudi Stock Exchange, Tadawul, within 20 Business days of the conclusion of the offering period, no later than 21 January 2021 corresponding to 8 Jumada Al Thani 1442.

Alkhabeer Diversified Income Traded Fund aims to provide investors with a diversified portfolio of income generating assets, giving them the opportunity to receive competitive periodic returns through investing in a multitude of assets, including Sukuk, trade financing, leasing, income funds and Murabaha transactions, geographically diversified across local, regional and global markets, including Saudi Arabia, the United Arab Emirates, the United States and Europe. The Fund intends to generate competitive annual returns exceeding 5%, distributed semi-annually to its shareholders.

Alkhabeer Capital, headquartered in the Kingdom of Saudi Arabia, specializes in asset management, alternative investments and investment services. It is authorized by the Capital Market Authority (license number 07074-37).

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