Logo of Albilad Capital
Albilad MSCI Saudi Growth ETF launched its initial public offering (IPO) on the Saudi Exchange (Tadawul) today, Jan. 23.
The offering period is 30 business days and the fund manager has the right to extend the IPO for a similar duration. In case the minimum amount is raised, the fund manager can close the offering at an earlier date.
Subscriptions during the IPO period are in-kind, and the fund manager may accept cash subscriptions at its own discretion.
The public, open-ended ETF aims to track and simulate the performance of the MSCI index of selected growth stocks for small and medium-sized Saudi companies that comply with Shariah standards.
The unit price upon offering is SAR 10, and the minimum amount the fund manager intends to raise is SAR 10 million.
According to data available on Argaam, the Capital Market Authority (CMA) approved Albilad Investment Co.’s request to offer units of Albilad MSCI Saudi Growth ETF on Tadawul.
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Fund Profile |
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Fund manager |
Albilad Investment Co. |
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Fund type |
Open-ended and public ETF |
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Investment objectives |
To track and simulate the performance of the MSCI index of selected growth stocks for small and medium-sized Saudi companies that comply with the Shariah standards. |
|
Risk factor |
High |
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Compliance |
Shariah-compliant |
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Unit price |
SAR 10 |
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Minimum Limit for Subscription during the Offering Period |
20,000 unit |
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Minimum Limit for Subscription in the Primary Market |
One basket or SAR 1 mln, whichever is higher |
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Minimum for in-kind subscription |
50,000 of the current fund units or its equivalent with a value of SAR 500,000, excluding the initial offering period, where the minimum subscription is 20,000 units. |
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Minimum for cash subscription |
One basket or SAR 500,000, whichever is higher, excluding the initial offering period, where the minimum subscription is 20,000 units. |
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Subscription fees |
No subscription fees |
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Redemption fees |
N/A |
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Management fees |
The fund manager will receive 0.55% of the fund's net asset value |
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Fund’s Currency |
SAR |
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Dividend distribution policy |
The fund manager will reinvest the dividend resulting from the investment in the fund's assets, and accordingly the fund will not distribute any periodic dividend to the unitholders. |
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Fund duration |
There will be no fixed duration of the fund's operation and no maturity date for the fund. |
The fund seeks to achieve a performance level that mimics the performance of the indicative index before calculating any distributions, fees, or expenses. This is through passive management of a basket of shares of companies with small and medium market values, selected based on the growth factor listed on Tadawul and in compliance with Shariah standards.
The fund intends to invest primarily in shares of Shariah-compliant companies with small and medium market values selected based on the growth factor and listed on Tadawul, including the main market and Nomu.
Below is a table showing the minimum and maximum investment percentage in each investment area:
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Investment Percentage* |
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Investment type |
Minimum |
Maximum |
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Shares of Shariah-compliant companies with small and medium market values selected based on the growth factor and listed on Tadawul, including the main market and Nomu |
95% |
100% |
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Shariah-compliant oil markets, money markets, and money market funds |
-- |
5% |
*The fund manager has the right to hold a higher percentage of the fund's assets in cash or in money market instruments and funds, up to 100% under exceptional circumstances.
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