Alkhabeer Income Fund debuts on Tadawul today

Alkhabeer Diversified Income Traded Fund logo

Alkhabeer Diversified Income Traded Fund will be listed as a closed-ended investment traded fund on the Saudi Stock Exchange (Tadawul), and units will begin trading today, Jan. 19, 2021.

The listing of Alkhabeer Diversified Income Traded Fund is the first for this type of funds in the Saudi market.

The fund aims to provide investors with the opportunity to achieve periodic returns by investing in income-generating assets, which vary across different categories, including sukuk, trade finance, Ijara, income and Murabaha funds, within multiple sectors in the developing and emerging local, regional and global markets.

The fund attracted more than 89,000 subscribers, with net subscription value of SAR 472.8 million, during the IPO period of 15 business days, which ended on Dec. 24, 2020.

Units will trade with the symbol 4700, a daily price fluctuation limit of +/-30% and static price fluctuation limit of +/-10%.

These fluctuation limits will be applied during the first three days of trading, and will revert to +/-10% on the fourth day, while the static price fluctuation limits will no longer apply.

The constant limit of volatility is applied when the price of the security reaches 10%, whether up or down, leading to the activation of the price volatility auction, to set a new constant limit for the security based on the new reference price resulting from the price volatility auction.

The volatility auction is activated for a period of five minutes when the price of the security reaches 10%, whether up or down. It is an auction that begins when the price of the security reaches the constant limit of volatility that can be repeated several times during the trading session, resulting in a new reference price that fixed price limits is built on.

For More IPOs