Saudi Arabia's Kingdom Tower/Bloomberg
Arabian Centres’ initial public offering (IPO) is the first in the Kingdom under Rule 144a, which allows the sale of securities primarily to qualified institutional buyers in the US.
Monday 13, May 2019 BY KUDAKWASHE MUZORIWA
Saudi Arabia's Public Investment Fund (PIF) has indirectly invested in the $747 million IPO of Fawaz Alhokair Group’s mall unit, Arabian Centres.
The Kingdom’s sovereign wealth fund made the investment through institutional funds and will not have a direct stake in Arabian Centres, signalling the government’s strong support for the IPO.
Arabian Centres had said public funds, private funds and discretionary portfolios were the main investors in the IPO without disclosed any names.
The Kingdom has been encouraging more family-owned companies to list in a bid to bolster its capital markets as part of reforms aimed at reducing its reliance on oil revenue, reported Reuters.