New IPO fund by Bakheet Group

A key Saudi financial firm  has launched a new investment fund to take advantage of emerging business opportunities in the fast-growing economy of the world’s dominant oil producer.

Bakheet Investment Group, a firm licensed by the Capital Markets Authority, said it decided to launch the Bakheet IPO Fund to invest in stocks and public offerings.

“It is a distinctive type of investment programme, as the fund invests in IPOs and aims to benefit unit holders from the book-building process [where the financial advisor of the firm being proposed for public offering offers its stocks first to investment funds],” the Riyadh-based firm told Emirates Business.

“The fund may also invest in stocks of publicly traded companies during their first year of listing only,” the statement quoted Beshr Bakheet, CEO and Chairman of the group, as saying.

This is the firm’s second investment fund following last year’s launch of the Bakheet Saudi Trading Equity Fund.

“The timing is ideal since the IPO market is expected to boom in the near future. The fund will benefit from daily valuation, while subscription to and redemption will be monthly,” said Hisham Abu Jamee, Head of Asset Management, Bakheet.