Middle East

Saudi Arabia’s sovereign wealth fund raises $ 5 billion amid surge in equity demand

Saudi Arabia’s plan to sell shares of a local company held by the Sovereign Wealth Fund has already paid dividends. We plan to raise about $ 5 billion in three months.

The Public Investment Fund (PIF) will set the price for the sale of shares at the upper limit of the price range, and then next month, digital security company ElmCo. Will raise $ 820 million by selling its shares. This is Saudi Telecom Co, the largest secondary offering in Europe, the Middle East and Africa last year. Added to the $ 3.2 billion raised by selling the shares of.

In December, it sold its shares on the Saudi Arabia Stock Exchange to raise $ 1 billion. Investor demand for the sale of Saudi Arabia’s stock is extremely high, with most IPOs priced at the highest prices available and the trading debut is skyrocketing.

The Saudi Benchmark Index surged about 9% this year, expanding its 30% rise in 2021.

Revenues from the sale of shares will be a welcome boost for PIF, which plans to invest about $ 40 billion in the Saudi Arabian economy this year. Areas such as entertainment and tourism that rarely existed in the kingdom before 2016.

Sales also show a shift in strategy. For decades, it has been a holding company of government stocks of local companies, aiming to recycle capital and sell long-held stocks to invest in new companies. It holds approximately $ 140 billion in Saudi Arabia shares, including large shares of the Saudi National Bank, Saudi Arabia Mining Company and Saudi Electric Power Company.

At the same time, PIF plans to enter the global stock market even deeper this year by investing an additional $ 10 billion in listed stocks.

https://gulfbusiness.com/saudi-wealth-fund-rakes-in-5bn-as-demand-for-stocks-booms/ Saudi Arabia’s sovereign wealth fund raises $ 5 billion amid surge in equity demand

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