Aljazira Takaful Ta’awuni hopeful of IPO success

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Updated 28 April 2013

Aljazira Takaful Ta’awuni hopeful of IPO success

The Saudi Capital Market Authority (CMA) board has approved Aljazira Takaful Ta’awuni Company’s (ATT) initial public offering (IPO) of 10,500,000 shares, representing 30 percent of its share capital, amounting to SR 350 million.
The offer price will be SR 10 per share and the subscription period will be from May 13 to 19.
Abdulmajeed Al-Sultan, chairman of Aljazira Takaful Ta’awuni Company, said the CMA’s decision would largely enhance its corporate governance practices and protect shareholders’ rights through furthering its commitment to the regulatory standards of joint stock companies that are listed in the market.
Al-Sultan said the step will improve the company’s financial position and enable it to realize its strategic objectives to become the local and regional leader of Shariah-compliant cooperative insurance.
He said the objectives will be realized through the provision of innovative high-quality insurance solutions that meet customer requirements and work for the stakeholders’ best interest.
He also highlighted the company’s reputation in Saudi market through its subsidiary relation with Aljazira Bank over the past 10 years.
Despite being still under establishment, Aljazira Takaful Ta’awuni is considered to be one of promising companies in the cooperative insurance sector in Saudi Arabia.
ATT was the leader in spreading the cooperative insurance in the Kingdom through its work under the umbrella of Bank Aljazira during the past 10 years.
The company succeeded to build and retain a strong large base of corporate and individual clients and to claim a number of global highly-recognized field-related awards.

Franklin Templeton gets QFI status in Saudi Arabia

Updated 26 min 12 sec ago

Franklin Templeton gets QFI status in Saudi Arabia

  • Fund manager attracted by fiscal and social reforms
  • KSA market attracts $3 billion in foreign flows this year

LONDON: US fund manager Franklin Templeton is to allow foreign investors to invest directly in Saudi Arabian stocks for the first time, after announcing that its funds have been granted Qualified Foreign Investor status by market regulators.

The firm’s increased commitment to Saudi Arabian stocks follows the steady easing of restrictions on foreign investors by regulators in the Kingdom, as part of capital markets and economic reforms within the country.

The Saudi Capital Market Authority (CMA) announced measures to ease restrictions on foreign investment in the local stock market from this January and allowed eligible foreign enterprises to acquire a larger stake of up to 10 percent of any issuer’s shares, up from 5 percent.

“Bold fiscal reforms, including steps to reduce its reliance on oil, will put the Kingdom’s economy on more sustainable footing over the long-term,” said Bassel Khatoun, managing director, frontier and MENA, Franklin Templeton Emerging Markets Equity.

“At the same time, impressive capital-market reform is culminating in classification upgrades by key index providers. Finally, social reform continues unabated, leading to new investment opportunities across the economy. As a firm, we are excited to be part of these positive developments.”

Saud stocks are expected to be upgraded to emerging market status by index provider MSCI on Wednesday, following a similar upgrade by fellow index provider FTSE Russell at the end of March.

Around $3 billion in foreign flows has come into the market already in 2018, taking total foreign investment in local equities to around $9 billion.

Franklin Templeton forecasts such upgrades will attract additional foreign investment flows of around $35 billion. The upcoming IPO of Saudi Aramco, expected in the next year or so, will bring in $50 billion in foreign investment depending on valuation, the firm predicted.