1.1 billion riyals, the “Investment Fund” gains from the rise in “Tadawul”

The Public Investment Fund managed to achieve market gains of 1.1 billion riyals, due to the rise in the shares of the Saudi Tadawul Company in the local stock market in its first trading session yesterday, Wednesday.

According to Arabiya Net, the company's share rose 12.4% by 13 riyals per share, to close, on Wednesday, at the level of 118 riyals, compared to 105 riyals, the subscription price.

After the subscription, the investment fund now owns 70% of the 84 million shares of the company's 120 million shares, as 36 million shares were offered for public subscription, according to the Saudi Economic newspaper.

The fund’s share in the Tadawul Company constitutes the seventh largest of its holdings in the listed local companies in terms of market value, and the second in partnership with STC in terms of ownership percentage of 70%.

After the session's rise to list the company, the value of Tadawul rose to 14.16 billion riyals, compared to 12.6 billion riyals, according to the subscription price of 105 riyals.

The company had offered 36 million shares, representing 30% of its capital, 70% of the offered shares were allocated to institutional investors and were covered 121 times, in addition to 30% offered to individuals and were covered 4.4 times.

Tadawul was established in 2007, with a capital of 1.2 billion riyals, divided into 120 million shares, which was wholly owned by the Public Investment Fund before the offering.

Tadawul includes four subsidiaries, which are Tadawul Saudi Arabia as a stock market, a clearing center for securities, a clearing house, a depository company, and a new Wamd company that specializes in services and technology solutions based on innovation.

The Saudi Tadawul Group became the third operating company of a Gulf stock exchange to be offered for public subscription, after the Dubai Financial Market Company in 2006 and the Kuwait Stock Exchange in 2019.

The proceeds of the three subscriptions together amount to about $1.48 billion, of which the Saudi Tadawul Group’s offering constitutes 68.3% of it at $1.01 billion.

While the proceeds of the Dubai Financial Market Company's subscription represented 29.5%, at a value of 435.5 million dollars, and the Kuwait Stock Exchange Company, 2.2%, at a value of 33.1 million dollars.