IPO funds trail peers over past 2 years

Tadawul trading screen

A survey by Argaam of investment funds active in the Saudi market showed that funds investing in Saudi equities, particularly IPOs, topped the list of the biggest decliners over the past two years.

The data showed that most of the investment funds active in Saudi equities — about 110 funds — posted varying losses, while only 15 funds recorded gains of varying degrees over the past two years.

SEDCO Capital IPO Fund was the worst-performing Saudi equity fund, declining by nearly 34%.

Performance of Saudi equity investment funds investing in IPOs

Most of the stocks listed over the past two years in the Saudi market also recorded declines, with only five of the 22 companies listed during the period posting gains.

Top stock decliners over past two years

The Capital Market Authority (CMA) recently invited all interested parties and market participants to submit their views on the regulatory provisions related to its project to improve IPO practices. The consultation period runs for 30 days and ends on Oct. 22.

The CMA said in a statement that the draft bill aims to strengthen the link between bids submitted by participating entities and their actual liquidity and ability to pay, and to reinforce compliance with bids under clear regulatory provisions, supporting the reliability of the bookbuilding process and its role in determining the offering price.