KHC explores TikTok investment, files for Flynas IPO: CEO

Talal Al-Maiman, CEO of Kingdom Holding Co. (KHC)

Kingdom Holding Co. (KHC) could invest in TikTok if Elon Musk or others opt for a buyout, CEO Talal Al-Maiman said, Al Arabiya TV reported.

On the sidelines of the World Economic Forum at Davos, Al-Maiman indicated that there is no intention currently to invest in other companies affiliated with Musk.

He also noted that KHC is reviewing all available opportunities from Musk and others.

According to the CEO, KHC took part in the B and C financing rounds of in artificial intelligence-focused company, xAI Corp., with $800 million (SAR 3 billion) in long-term investments. KHC holds an almost 3.5% stake in xAI.

Boasting an ample financial capacity, KHC currently owns SAR 32 billion worth of investments in listed companies and others outside Saudi Arabia. It seeks to ramp up these investments in case of lower bank commissions, Al-Maiman pointed out. 

In general, KHC puts focus on borrowing opportunities for investment purposes not only in the US but also worldwide, the CEO added.

He stressed that KHC is currently focusing its investments on Saudi Arabia, where it boasts whopping real estate investments, not to mention Flynas. This is together with the company’s plan to invest SAR 100 billion over 20 years in developing North Abhur, Jeddah, which is in close proximity to the under-construction Jeddah Tower project.

The Saudi-listed company is constantly reviewing investment opportunities, with its investment committee meeting biweekly to study favorable options, said the CEO, emphasizing that appropriate timing and price are vital for investment in the Saudi and global markets.

He confirmed that Flynas has filed for an IPO in the Saudi market. It is in the final phase to obtaining the approval of the Capital Market Authority (CMA).

“The planned listing will be carried out through all investors in the company selling 30% of their ownership,” he added.

As for the Jeddah Tower project, its financing will be either through borrowing, off-plan pre-sales and actual sales (excluding tower sales) such as land sales. In addition, a SAR 2.5 billion financing agreement was signed with Alinma Bank to fund the SAR 6 billion project, according to Al-Maiman.