The initial public offering (IPO) of Saudi Equity Growth Traded Fund on Nomu-Parallel Market as a closed-ended traded fund begins today, May 1.
The process will run for 29 business days or until June 8, 2023.
The fund targets raising SAR 300 million by offering 30 million units at SAR 10 each in the initial offering, with a minimum of SAR 100 million to start up.
Last January, the Capital Market Authority (CMA) approved the application received from Yaqeen Capital Co. to float units of Saudi Equity Growth Traded Fund on Nomu-Parallel Market as a closed-ended traded fund.
Saudi Equity Growth Traded Fund is a publicly offered closed-ended traded Shariah-compliant fund. It aims to grow capital by providing investment opportunities to diversify investments in different and diverse sectors and fields in one fund.
Eligible investors can subscribe to the Saudi Equity Growth Traded Fund with a minimum subscription of SAR 1,000 through the subscription channels available at the receiving entities, namely Yaqeen Capital (Lead Manager), along with BLOMINVEST, or the Saudi Exchange (Tadawul)website.
Closed-ended investment funds are publicly available investment funds whose units are traded on the Saudi Exchange (Tadawul).
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Details |
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Fund Name |
Saudi Equity Growth Traded Fund |
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Fund Manager |
Yaqeen Capital |
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Fund Type |
A closed-ended traded fund that is offered publicly, in compliance with CMA's regulations |
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Fund Period |
99 years from adding and listing units on Tadawul and becoming available for trading |
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Net Asset Value |
SAR 300 mln |
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Minimum Value for Fund Commencement |
SAR 100 mln |
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Fund Total Units |
30 mln |
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Minimum Units for Fund Commencement |
10 mln |
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Minimum Limit for Subscription |
SAR 1,000 |
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Unit Price |
SAR 10 |
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Target Returns |
8% annually |
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Offer Period |
29 days from May 1 to June 8, 2023 |
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Dividends Distribution Policy |
The fund will distribute cash dividends not exceeding 50% of the profits realized from each exit process of the private equity asset class, in the absence of new investment opportunities. The fund manager will announce the cash dividend, if any, once a year, after announcing the fund's annual financial results at the end of the fiscal year. |
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Management Fees |
2.5% annually of the fund's net asset value as invested in shares of private companies |
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1.5% annually of the fund's net asset value as invested in shares of listed companies |
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0.7% annually of the fund's net asset value as invested in capital market instruments The change in the weight of the fund’s asset class during evaluation days will be factored in when calculating the fees |
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Subscription Fees |
2% of the subscription cash amounts, to be paid in full upon the initial offering |
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Additional Information |
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Lead Manager |
Yaqeen Capital |
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Receiving Banks |
Yaqeen Capital, BLOMINVEST |
Subscription to the fund's units, as per the fund’s terms and conditions, is available for the following categories:
1. A natural person who meets at least one of the following criteria:
- Have carried out transactions in the securities markets with a total value of not less than SAR 40 million, not less than 10 transactions in each quarter during the past 12 years.
- The net value of its assets should not be less than SAR 5 million.
- Work or have worked for at least three years in the financial sector.
- Holder of the CME-1 certificate approved by the Capital Market Authority (CMA)
- Holder of a professional certificate specialized in the field of securities business accredited by an internationally recognized body.
- To be a client of a capital market institution licensed to practice management activities, provided that the following are met:
- The offering and all related communications shall be made through the capital market institution.
- The capital market institution must have been appointed under conditions that enable it to make investment decisions on behalf of the client without the need to obtain prior approval.
2. Individuals registered with the capital market institution if the offering is by the institution itself or a legal person who meets at least one of the criteria:
- Any legal person acting for his own account, provided that he is one of the following:
- A company that owns or is a member of a group that owns net assets of not less than SAR 10 million and not more than SAR 50 million.
- Any unregistered company, partnership company or other establishment that owns net assets of not less than SAR 10 million and not more than SAR 50 million.
- A person acting as a board member, officer or employee of a legal person and is responsible for any securities activity therewith.
- To be a client of a capital market institution licensed to practice management business.
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