Saudi Arabia’s PIF completes sale of part of its stake in Tadawul

Saudi Arabia’s Public Investment Fund has announced the successful completion of the sale of part of its stake in Saudi Tadawul Group Holding Company through an accelerated bookbuild offering (ABO).

PIF successfully sold 12 million shares of its shareholding in Tadawul representing 10 per cent of the company’s share capital. The offering size was SAR2.3bn, making it the second largest ABO to ever take place in the Saudi market and the GCC region.

Read: Saudi wealth fund plans to sell 10% stake in stock exchange

PIF’s remaining stake equates to 72 million shares or 60 per cent of the company’s share capital.

Eyas AlDossari, head of the investment advisory in the MENA Investments Division at PIF, said: “This transaction is in line with PIF’s strategy to recycle the fund’s capital and invest in emerging and promising sectors in the local economy. The strong interest generated from domestic and international investors is indicative of Saudi Tadawul Group Holding Company’s ability to attract a broad base of investors as one of the leading companies listed on the Saudi Exchange.”

The transaction also contributes to increasing the company’s free float, enhancing the liquidity of the market for both local and international investors, and is expected to contribute to the value creation for the company’s shareholders and for the Saudi market as a whole.