Saudi’s SEDCO Capital launches IPO investment fund

SEDCO Capital, a Saudi-based global Shariah-compliant and ESG-led asset management and investment advisory firm has launched the SEDCO Capital IPO Fund.

The open-ended Shariah-compliant investment fund is designed to provide access to a diversified portfolio of companies planning to go public in the Saudi market.

SEDCO Capital, known for its Sharia-compliant investment strategies, will leverage its expertise to identify high-potential opportunities in established and emerging sectors.

Abdulwahhab Abed, acting CEO of SEDCO Capital, said: “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.

“This investment opportunity is geared towards investors with a higher risk appetite, promising potentially higher returns.”

This move aligns with Saudi Arabia’s broader Vision 2030 plan, which seeks to diversify the economy and reduce its reliance on oil.

The kingdom has witnessed a surge in IPO activity, driven by government initiatives to privatise state-owned enterprises and encourage the development of private sector companies.

The new fund is expected to attract local and international investors, offering them a vehicle to tap into the growing Saudi market.

The company has not disclosed the size of the fund or the timeline for its launch but indicated that details would be made available in the coming weeks.

The launch of this fund reflects SEDCO Capital’s strategy to expand its product offerings and cater to the increasing appetite for investment in the Saudi market.

In addition to stocks and rights issues of listed companies, the fund has the flexibility to invest in Shariah-compliant IPOs of REITs, sukuk and money market instruments.

Read: MENA region sees 14 IPOs valued at $2.64bn in Q2 2024

Key highlights of SEDCO Capital’s fund

Fund type: Open-ended public investment fund
Minimum subscription: SAR5,000
Unit Price at inception: SAR10
Benchmark index: SEDCO Capital Total Return IPO Index
Management fees: 1.75 per cent of the fund’s net asset value (NAV) annually

The fund is regulated by the Capital Market Authority (CMA) of Saudi Arabia to ensure adherence to the highest standards of transparency and regulatory compliance.