Albilad Capital discloses Albilad Gold ETF substantial event

Albilad Capital, the fund manager of Albilad Gold ETF, announced receiving a letter from the market maker on Sunday, it said in a bourse statement.

The market maker said that the fund’s units received strong turnout from investors since debut on Tadawul on June 2.

Accordingly, the price gap between the unit market price and net asset value (NAV) per unit rose over 20% (based on closing price on Thursday, June 4).

The market marker stressed its commitment to the regulations set by the Capital Market Authority (CMA) and the Saudi Stock Exchange (Tadawul), adding that the fund manager continues to request issuance of an indefinite number of units for Albilad Gold ETF immediately to enable the fund maintain its liquidity and make balance between the unit price and NAV, which is updated every 15 seconds on Tadawul, and the fund manager’s website, or NAV which is updated at the end of every day.

The issuance of indefinite number of units for Albilad Gold ETF will help reduce the gap between the unit market price and NAV, and provide liquidity as NAV per unit stands at SAR 9.80, compared to the market price of SAR 12.16 as on June 4.

This statement was issued by the market maker to keep investors updated with the material events related to the trading mechanism.

On the other hand, the fund manager added that it issues new units on a daily basis since debut, emphasizing its commitment to issue more units to meet the market maker’s demand, and help stabilize unit prices in the secondary market.

The unit market price is impacted by offer and demand, while NAV is subject to the market value.

Tadawul suspended trading on Albilad Gold ETF today, June 7 for one trading session upon the fund’s request, as it will disclose an event.