Alkhabeer Diversified Income Traded Fund will launch its initial public offering (IPO) on Saudi Stock Exchange (Tadawul) today, Dec. 6, 2020.
The IPO will run through Thursday, Dec. 24.
The Capital Market Authority (CMA) approved on Sept. 16 a request by Alkhabeer Capital to list the units of Alkhabeer Diversified Income Traded Fund on Tadawul as the first traded product of its kind in the region.
The offering is also the first of its kind on Tadawul.
Alkhabeer Income Fund is a closed-ended traded vehicle and provides global exposure to a multi-asset portfolio of income generating assets.
Closed-ended traded funds are investment funds that are publicly offered with units traded on Tadawul.
The target fund size is SAR 1 billion. The fund manager will issue 100 million units priced at SAR 10 each in the IPO.
The primary objective of the fund is to generate periodic income for the investors by investing in various Shariah-compliant income-generating assets such as sukuk, trade finance, leasing, income funds and Murabaha in various sectors locally and overseas, including developing and emerging markets.
The fund targets an annual net return of 5.22% of total capital.
Subscription in units is available only to the following categories:
-Natural persons of Saudi nationality or the nationality of a member state of the Gulf Cooperation Council (GCC);
-Establishments, companies, investment funds and other legal entities existing in Saudi Arabia and other GCC states;
-Foreign residents in Saudi Arabia;
-Eligible foreign investors under the rules organizing the investment of eligible foreign financial institutions in securities issued by the CMA board;
-Other investors permitted by the CMA to possess securities listed on Tadawul.
Receiving banks are Aljazira Capital, National Commercial Bank (NCB), Riyad Bank and Banque Saudi Fransi.
Subscribing in the fund for clients of other banks is also available through the subscription system on the website of the fund manager, Alkhabeer Capital.
The minimum subscription amount is set at SAR 1,000 (100 units).
|
Alkhabeer Diversified Income Traded Fund Profile |
|
|
Fund |
Alkhabeer Diversified Income Traded Fund, a Shariah-compliant closed-ended traded fund |
|
IPO period |
15 business days, from Dec. 6 to Dec. 24 |
|
Investment objectives |
Generate periodic income for the investors by investing in various Shariah-compliant income-generating assets |
|
Fund size |
SAR 1 bln |
|
Total number of units |
100 mln |
|
Unit price |
SAR 10 |
|
Minimum subscription |
SAR 1,000 |
|
Maximum subscription |
None |
|
Subscription fees |
1% of the allocated cash subscription amount. Such fees are payable upon subscription in the fund
|
|
Fund manager |
Alkhabeer Capital |
|
Lead manager |
Aljazira Capital |
|
Receiving banks |
Aljazira Capital, NCB, Riyad Bank and Banque Saudi Fransi |
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}