Logo of Yaqeen Capital
The Capital Market Authority (CMA) approved last January the application received from Yaqeen Capital Co. to float units of Saudi Equity Growth Traded Fund on Nomu-Parallel Market as a closed-ended traded fund.
The fund targets raising SAR 300 million by offering 30 million units at SAR 10 each in the initial offering.
The offered units will be limited to qualified investors as defined in the glossary used in CMA's regulations and rules.
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Details |
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Fund Name |
Saudi Equity Growth Traded Fund |
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Fund Manager |
Yaqeen Capital |
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Fund Type |
A closed-ended traded fund that is offered publically, in compliance with CMA's regulations |
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Net Asset Value |
SAR 300 mln |
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Minimum Value for Fund Commencement |
SAR 100 mln |
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Fund Total Units |
30 mln |
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Minimum Units for Fund Commencement |
10 mln |
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Unit Price |
SAR 10 |
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Investment Objective |
Capital growth by providing investment opportunities for diversification in various sectors and fields through a single fund |
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Target Returns |
8% annually |
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Minimum Limit for Subscription |
SAR 1,000 |
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Offer Period |
29 days from May 1 to June 8, 2023 |
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Units Trading Date |
20 working days after offer period completion |
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Management Fees |
2.5% annually of the fund's net asset value as invested in shares of private companies |
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1.5% annually of the fund's net asset value as invested in shares of listed companies |
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0.7% annually of the fund's net asset value as invested in capital market instruments The change in the weight of the fund’s asset class during evaluation days will be factored in when calculating the fees |
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Subscription Fees |
2% of the subscription cash amounts, to be paid in full upon the initial offering |
The fund aims to achieve growth and capital gains in the short, medium and long terms. This is by investing actively in the shares of private equity companies that are suitable for listing or floating on the Saudi or any other market, or exiting them through a secondary sale (selling the company’s stake to another company or party).
In the absence of a suitable opportunity, the fund manager shall actively invest in other assets such as shares of listed companies. This could be through initial public offerings (IPOs) and capital market instruments, including units of Shariah-compliant capital market funds.
The fund manager defined the types of securities in which it intends to invest in, namely:
Shares of private companies that are suitable for listing or floating on the Saudi or any other market, or exiting from them through a secondary sale (selling the company’s stake to another company or party), besides being Shariah compliant.
Shares of listed companies on the Saudi Exchange (Tadawul) or Nomu, including initial subscriptions (and subscriptions issued by the fund manager or investment advisor), which are compliant with Shariah regulations.
Capital market instruments which are invested in either directly or through Shariah-complaint investment funds licensed by the CMA (including funds managed by the fund manager or investment advisor).
The fund's strategy is to achieve an absolute return primarily from investing in shares of private companies and there will be no restrictions on exposure to a particular sector.
Geographically, the fund's concentration percentage will range from 75-100% as a minimum of the fund's net asset value towards the Kingdom of Saudi Arabia. Meanwhile, the percentage of countries outside the Kingdom will not exceed 25% of the net asset value.
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Percentage of Investment in Each Field |
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Investment type |
Minimum limit |
Maximum limit |
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Shares of private companies |
50% |
100% |
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Shares of listed companies |
0% |
50% |
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Cash and capital market fund instruments* |
0% |
50% |
*In normal circumstances, the fund manager will not retain cash liquidity and money market instruments/funds at a rate not exceeding 50% of the fund's net asset value. In the event of liquidating some investments (and until cash liquidity is re-invested) or in fund commencement or others, the allocated percentage may increase to up to 100% of the fund's net asset value.
The fund may also invest primarily in the shares of private companies that aim to be listed or floated on the Saudi or any other market, or exit from them through a secondary sale. It shall not be subject to any concentration in globally-listed securities (except for Saudi Arabia), unless their purpose is to exit from its current investment in private companies.
In the case of shares of listed companies, the fund will invest only in Tadawul and Nomu. This in addition to tapping shares of private companies in foreign markets after a period not exceeding six months from the fund’s listing on Nomu.
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