PIF seeks active role in Saudi capital market by listing subsidiaries: Deputy Governor

Yazeed Alhumied, Deputy Governor & Head of MENA Investments at Public Investment Fund (PIF)

The Public Investment Fund (PIF) aims to be an active participant in the Saudi capital market by listing its subsidiaries after ensuring their initial public offering (IPO) readiness , Asharq Al-Awsat newspaper reported, citing the fund's Deputy Governor & Head of MENA Investments Yazeed Alhumied.

This will deepen the Saudi capital market through increasing market capitalization, raising the number of listed companies, and diversifying the investment options. It will also help lure investors from private sector entities in addition to other local and international players.

The PIF strategy, launched by the fund’s Chairman Crown Prince Mohammed bin Salman, comprised a capital recycling program, which can be implemented through selling stakes in its subsidiaries, in addition to reinvesting the sale proceeds into high-yielding promising strategic sectors.

Alhumied indicated that the fund is constantly evaluating its asset base in both local and international markets. It continues to establish new units or acquire assets to develop and resell them as mature investments, while maintaining a controlling stake to help contribute to these companies’ growth.

Capital recycling plays a significant role in developing the Saudi financial sector and attracting new investors to the market; a primary objective for the fund, he added.

In his speech at Saudi Budget 2022 Forum, PIF Governor Yasir Al-Rumayyan said the fund's assets under management (AUM) rose to SAR 1.8 trillion, which is higher than 2021 target. He indicated that PIF seeks to form partnerships with the private sector and localize technologies in the Kingdom.