ANB Invest offers new Shariah-compliant IPO fund

ANB Invest, the investment arm of Arab National Bank (ANB), has launched its new Al-Mubarak IPO Fund, an open-end Shariah-compliant fund.
The Saudi riyal denominated fund, authorized by Capital Market Authority (CMA), is managed by ANB Invest and aims to achieve capital growth through long-term investment in Shariah-compliant initial public offerings (IPOs) in Tadawul (Saudi stock market), in addition to the shares of companies listed within three years.
Bassam Al-Mubarak, ANB Invest CEO, stated: “Investors, particularly individuals, suffer from the reduced allocation of IPO shares and the Al-Mubarak IPO Fund offers them the opportunity to improve their participation in IPOs indirectly, thanks to the increased allocation ratio of IPO shares granted to funds; the fund offering goes in line with the company’s commitment to diversify its investment products, especially the Shariah-compliant funds.”
On the other hand, Majed Al-Otaibi, head of asset management in ANB Invest, stated: "The Saudi stock market is considered the largest equity and IPO market in the region, having witnessed 24 IPOs between 2012 and 2016 for a total of SR38.59 billion; additionally, it is expected that many IPOs will be launched in the upcoming period as the willingness of companies to list their shares is growing.”
The fund’s initial subscription started on April 17 and will continue until May 8, during which all customers will benefit from a full waiver on subscription fees.