The initial subscription for the Musharaka Initial Public Offerings Fund began on Sunday, October 12, 2014, and will continue until Thursday, October 30, 2014.
The Musharaka Initial Public Offerings Fund is an open-ended investment fund aimed at long-term capital growth by investing in initial public offerings (IPOs) in the Saudi stock market and in stocks that have been listed on the Saudi stock market for less than three years, provided they comply with Shariah standards. The fund also seeks to outperform its benchmark index (Musharaka IPO Index), which is calculated by Standard & Poor’s and will be published on the fund manager’s website. The fund will not distribute dividends or cash payouts to investors but will reinvest all distributed profits back into the fund.
The initial offering period for the fund’s units started on Dhul-Hijjah 18, 1435 AH (October 12, 2014) and will continue until Muharram 6, 1436 AH (October 30, 2014). The fund’s operations will commence on Muharram 9, 1436 AH (November 2, 2014).