Saudi Equity Growth Traded Fund IPO kicks off today

01/05/2023 Argaam

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).

 

Details

Fund Name

Saudi Equity Growth Traded Fund

Fund Manager

Yaqeen Capital

Fund Type

A closed-ended traded fund that is offered publicly, in compliance with CMA's regulations

Fund Period

99 years from adding and listing units on Tadawul and becoming available for trading

Net Asset Value

SAR 300 mln

Minimum Value for Fund Commencement

SAR 100 mln

Fund Total Units

30 mln

Minimum Units for Fund Commencement

10 mln

Minimum Limit for Subscription

SAR 1,000

Unit Price

SAR 10

Target Returns

8% annually

Offer Period

29 days from May 1 to June 8, 2023

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.

Management Fees

2.5% annually of the fund's net asset value as invested in shares of private companies

1.5% annually of the fund's net asset value as invested in shares of listed companies

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

Subscription Fees

2% of the subscription cash amounts, to be paid in full upon the initial offering

 

Additional Information

Lead Manager

Yaqeen Capital

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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