The Saudi stock trading yesterday witnessed the implementation of 22 special deals on 170 million shares of SABB Bank, with the departure of foreign owners and the entry of others, representing 8.3 per cent of the bank’s shares amounting to 2.055 billion shares. Liquidity circulating in the market totaling 16.8 billion riyals.
According to the monitoring unit of the reports in the “Al Eqtisadiah” newspaper, based on “Tadawul” data, yesterday’s deal in “SABB” is the third highest private deal in the history of the stock market since private deals were allowed in 2011. The deals were executed at a price of 22.1 riyals, which is less than The share price in the market at closing of 25 riyals.
In conjunction with these deals, the stock closed down 7.9 percent, closing at 25 riyals, losing 2.15 riyals in one session.
Prior to yesterday’s trading, Citigroup Saudi Arabia and Goldman Sachs Saudi Arabia announced the completion of an accelerated order building process for the sale of about 115.9 million shares of SABB shares, which will be acquired by Citigroup Global Markets Ltd. and Goldman Sachs International. From Natwest Plc and Banco Santander SE for selling at the same price per share to final investors on December 1, 2020.
According to the statement published on the Tadawul website, these shares represent 5.6 percent of the company’s capital, of which 36.99 million shares have been allocated to the Hong Kong and Shanghai Banking Holding Company BV, which will result in an increase in its ownership in SABB from 29.2 To 31.0 percent, and the amount of 42.37 million shares of the Olayan Saudi Investment Company Ltd., which will result in an increase in its ownership in SABB from 18.3 to 20.3 percent.
The deal price will be fixed for each share at 22.10 riyals per share, with total proceeds of 2.56 billion riyals.The Biggest Deals
In June of this year, the Saudi stock market witnessed the implementation of the largest deal in the history of the market. The share of the Saudi Basic Industries Corporation (SABIC) amounted to 259.1 billion riyals on 2.1 billion shares, equal to 70 percent of the company’s shares.
The deal resulted from the purchase of Saudi Aramco, the stake that the Public Investment Fund held in SABIC, which constituted 70 percent of the company’s shares.
While it was the second largest deal in the history of the market on the shares of Banque Saudi Fransi, and it was executed in September 2017 with a value of 5.76 billion riyals. The deal was represented in the sale of Credit Agricole Bank about 195.3 million shares for the benefit of the Kingdom Holding Company, which it owned in the Saudi Fransi Bank, It represented 16.2% of the bank’s capital at the time.
While yesterday’s deal, which was executed on SABB Bank, is the third largest deal. The fourth largest deal goes back to “Al-Rajhi Bank” in January 2014 with a value of about 3.09 billion riyals, and then the fifth deal that was executed on shares of Riyad Bank in May 2015 with a value of 2.59 billion riyals.
Private deals are the orders that are executed when a seller investor and a buying investor agree to trade specific securities at a specific price, in a manner that conforms to the controls of the Saudi Stock Exchange “Tadawul” and the rules and regulations issued by the relevant Capital Market Authority.
Private deals do not affect the price of the last deal, the highest or lowest share price, the opening price, the closing price, the market index or sector indices.
Economic Reports Unit