Saudi-Based SEDCO Capital Launches Shariah-Compliant IPO Fund
By
James Emmanuel
Forbes Middle East Staff
Aug 19, 2024, 10:31 AM
Saudi-Based SEDCO Capital Launches Shariah-Compliant IPO Fund
SEDCO Capital said that its fund aims to deliver returns by tapping into the growth potential of newly listed companies. Image by SEDCO Capital.
Saudi-based Shariah-compliant asset management and investment advisory firm SEDCO Capital has launched its open-ended investment fund, the SEDCO Capital Initial Public Offering (IPO) Fund, a company statement showed on Sunday.
Investment strategy
The fund aims for medium-to-long-term capital growth by focusing on IPOs and rights issues of listed companies on the Saudi bourse.
The minimum subscription is stipulated at $1,332.37 (SAR 5,000), with each unit costing $2.66 (SAR 10).
“Evaluating prospects of the IPOs, especially the commercial, financial and management ones is the key expertise that the fund manager brings along with this fund,” added the statement.
Apart from shares and rights issues, the fund has the flexibility to invest in Shariah-compliant IPOs of real estate investment trusts (REITs), Sukuk and money market instruments, said SEDCO Capital.
The SEDCO Capital IPO Fund is regulated by Saudi’s market watchdog, the Capital Market Authority (CMA), ensuring adherence to the highest standards of transparency and regulatory compliance.
The Jeddah-based company provides clients with investment solutions through a dynamic asset allocation process across diversified asset classes that deliver strong risk-adjusted returns. Apart from Jeddah, SEDCO Capital has offices in Riyadh, Dubai, London, and Luxembourg, according to its website.
SEDCO Holding, the parent company of SEDCO Capital, ranks seventh on Forbes’ list of Top 100 Arab Family Businesses 2024 list.
Crucial quote
“The launch of the SEDCO Capital IPO Fund represents a pivotal development in our public equities offering. It not only diversifies our product portfolio but also aligns with our strategic vision to leverage market dynamics and generate sustainable Shariah-compliant returns for our investors,” said Acting CEO Abdulwahhab Abed in the statement.
“This investment opportunity is geared towards investors with a higher risk appetite, promising potentially higher returns.”
Big number
$8 billion. That’s the total assets under management (AUM) held by SEDCO Capital, according to its website.
MENA IPO
The Middle East and North Africa (MENA) region saw strong IPO activity in the second quarter of 2024, with 14 IPOs raising $2.64 billion, led by Saudi Arabian companies. Saudi Arabia maintained its leading position in the regional IPO market, accounting for 11 of the 14 share offerings in the second quarter, raising a total of $1.6 billion.
By
James Emmanuel
Forbes Middle East Staff
James Emmanuel is a Digital Editor at Forbes Middle East, writing news reports on developments in business and economy ranging macro economy, equity, finance, energy, realty, transport, power, water, and corporate sector. A seasoned journalist with rich experience in writing, rewriting and editing news reports and features spanning over two-and-a-half decades in India and the Gulf, Emmanuel has worked in varying capacities such as correspondent, desk editor and business editor, for many reputed national dailies and an international news agency*
