Saudi Arabia’s Alkhabeer Capital sets dates for IPO of Income Traded Fund 2030
Fund targets capital of SAR 1 billion with a minimum initial subscription of SAR 1,000
Jeddah: Saudi Arabia-headquartered Alkhabeer Capital announced on Wednesday the IPO dates for its Diversified Income Traded Fund 2030 units on the Saudi Exchange, which will start on Sunday, April 28, last 15 business days, and end on Thursday, May 16.
Alkhabeer Capital - a prominent asset manager specialisingspecialising in Shari’a-compliant investments, financial services and brokerage services, is targeting a total offering of 100 million units at an initial offering price of SAR 10 for the income traded fund.
Alkhabeer Diversified Income Traded Fund 2030 is a Shari’a-compliant closed-ended traded fund established under the laws and regulations of Saudi Arabia and regulated by the Capital Market Authority. “The Fund aims to distribute returns semi-annually for investors by investing in various income-generating assets across local and global markets, with a fixed maturity date set for 2030,” the company said.
It explained that the fund also leverages the expertise of international asset management companies with a strong track record and proven ability to navigate various economic cycles.
Ahmed Saud Ghouth, Chief Executive Officer of Alkhabeer Capital, said, “We are delighted to launch Alkhabeer Diversified Income Traded Fund 2030 with a target capital of SAR 1 billion. Our new fund is designed to generate periodic returns for investors by investing in a diversified pool of income-generating assets.”
Ghouth said, “With a fixed maturity term and a focus on generating income, the fund offers investors clarity and predictability regarding cash flow. Additionally, the fund allows investors to capitalisecapitalise on favourable short-term rates for an extended period, optimisingoptimise their returns during elevated rates, which are anticipated to decline as inflationary pressures subside.”
Moreover, in addition to the flexibility to trade the fund’s units throughout its duration, the fund also offers a clear exit route at maturity, where the net asset value will be distributed to unitholders, he explained.
Alkhabeer Diversified Income Traded Fund 2030 invests in various income-generating assets such as sukuk, trade finance, leasing, senior secured loans, structured income notes, income funds, and Murabaha.