Kuwait’s premier financial institution, Kuwait Finance House (KFH), is actively seeking avenues for growth in the Saudi Arabian sector, as revealed in a recent disclosure to the stock exchange. This news came on the heels of speculations that KFH was considering acquiring a portion of the Saudi Investment Bank.
Before the trading session began, KFH shares were placed on hold but trading resumed post the official communiqué. The bank affirmed its strategy to explore regional investment prospects, with a special focus on the lucrative Saudi marketplace.
Regarding the information disseminated by Bloomberg, KFH validates its ongoing evaluation of various opportunities across several banking entities, though no formal undertakings or agreements have been established with any financial institution within the Kingdom of Saudi Arabia,
declared the banking giant.
Amidst the burgeoning rumors, Saudi Investment Bank (SAIB) experienced a surge in its stock value, escalating up to 4% on the Riyadh exchange. SAIB’s stocks oscillated between 13.26 Riyals and 12.78 Riyals, ultimately settling at the latter when trading concluded.
Conversely, KFH, which holds the crown as Kuwait’s most substantial bank in terms of assets and capital, saw a slight uptick in its share price, notching up marginally by less than 0.50% at 0.717 Kuwaiti dinars.
Ownership of KFH is divided, with the Kuwaiti government and the Public Authority for Minors Affairs sharing a substantial 31.5% stake, while the Vanguard Group and BlackRock hold 2.45% and 1.75%, respectively.
In the case of the Saudi Investment Bank, the General Organization for Social Insurance – Saudi Arabia claims the lion’s share at 25.6%, followed by Yasser Mohammed Al Jarallah with 4.6%, and the Vanguard Group and BlackRock owning smaller shares of 2% and 1.2% respectively.