A look at PPA, GOSI stakes in Tadawul-listed firms post merger decision

Saudi Cabinet issued a resolution on June 15, approving the merger of the Public Pension Agency (PPA) into the General Organization for Social Insurance (GOSI) with the aim of achieving optimal use of resources, and boosting operational and financial efficiency.

GOSI and PPA are major shareholders in several Saudi-listed companies and banks.

According to the latest update of the ownership stakes in listed companies above 5%, PPA owns shares in seven companies, namely Saudi National Bank (SNB), Saudi Investment Bank (SAIB), National Petrochemical Co. (Petrochem), Saudi Industrial Investment Group (SIIG), The Company for Cooperative Insurance (Tawuniya), Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) and Eastern Province Cement Co. (EPCCO).

Meanwhile, GOSI owns stakes in 17 companies, the largest in terms of number of shares are Riyad Bank, SNB, Al Rajhi Bank, SAIB, Saudi British Bank (SABB), Banque Saudi Fransi (BSF), Arab National Bank (ANB), Petrochem, Etihad Etisalat Co. (Mobily), Yanbu National Petrochemical Co. (Yansab) and SABIC Agri-Nutrients Co.

GOSI and PPA share ownership of a number of listed companies, namely SNB, SAIB, Tawuniya and Petrochem.

The merger decision is unlikely to affect GOSI’s investment strategy and the stock market, a GOSI official said today, June 16.

The aggregate ownership of the two institutions in the Saudi market is about SAR 2.228 billion shares.

The following table shows the ownership of GOSI and PPA in details:

On May 5, 2019, GOSI transferred a portion of its stakes in several Tadawul-listed companies to Hassana Investment Co. (HIC). This divestiture included 28 companies in various sectors of the market.

In the 2019 annual report of GOSI, the entity did not disclose the listed companies in which it owns less than 5%.

Meanwhile, the PPA announced on May 9, 2019, transferring some shares from its investment portfolio to its investment arm, Al Ra’idah Investment Co., to maximize its return on investments as well as achieve the institution’s goals, and serve subscribers and retirees.

The companies whose shares will be transferred are Tawuniya, SPIMACO, Makkah Construction and Development Co., stc, Sahara International Petrochemical Co. (Sipchem), Saudi Cement, Saudi Real Estate Co. (Al Akaria), Arabian Cement Co., Tabuk Cement Co., Zamil Industrial Investment Co., SAIB, Petrochem, Samba Financial Group, SIIG, Yamama Cement, Saudi Arabian Fertilizer Co. (SAFCO), and Qassim Cement Co.

In its 2019 annual report, the agency revealed its ownership in listed companies, including less than 5% stake.