Saudi Kuwait Finance House launches subscription in fund for initial issuance investment, new enlisted companies
Saudi Kuwait Finance House (KFH-Saudi)announced the launch of subscription in its first investment fund ‘KFH Fund for Initial Issuances’ in Saudi Riyal for one month starting today till June 10th.
The fund seeks to achieve high returns and capitalistic growth through allowing investors to primarily invest in the shares of public companies during the first public offering phase of their shares, or in the shares of new enlisted companies that have been enlisted less than three years ago in the bourse.
KFH-Saudi CEO Tarek Al-Rekheimi stated that the Saudi market is one of the biggest markets in the region, which prompted the bank to seize best investment opportunities for its clients. He added that the bank’s initial issuance fund has been setup.
He explained that the bank seeks to invest up to 90% of its net assets in regular shares during the first offering phase, and in the shares of new enlisted companies.
He asserted that all companies that will witness investments will follow Sharia regulations.
Moreover, Al-Rekheimi noted that the fund that is offered for subscription for SR 10 per unit, is considered to be a group investment program tat was setup for investors who seek real returns that compete against returns yielded by other products that invest in enlisted shares.
He went on to say that the fund can invest in short-term deals with high liquidity according to Sharia regulations to protect capital, until promising investment opportunities are available.
It is worth noting that KFH-Saudi is a Saudi closed shareholding company with a fully-paid capital of SR 500 million, and is owned by Kuwait Finance House (KFH).