Shares in Saudi Arabia’s Kingdom Holding surged to a decade-long high this week, as investor excitement builds around the upcoming initial public offering of Elon Musk’s SpaceX. The Riyadh-based investment firm confirmed its stake in the space exploration company could be valued at over $10 billion.
Quick Facts
- Kingdom Holding owns 0.63% of SpaceX.
- Potential stake value estimated at $10.6 billion.
- Company stock reached its highest since December 2015.
Investor Frenzy on the Tadawul
The lack of official financial details for the June IPO on the Nasdaq has not dampened enthusiasm on Riyadh’s stock exchange. Kingdom Holding’s stock jumped 10% on Monday to SAR 14.92 ($3.98), marking a 21% gain across the two trading sessions since the company commented on its SpaceX position.
This rally reflects a broader trend. Since March 3, Kingdom Holding’s shares are up 84%, significantly outperforming the main Saudi stock index, which gained 4.2% in the same period. Trading activity has also intensified, with average daily volumes nearly tripling from 545,000 to 1.4 million shares.
Calculating the SpaceX Windfall
Kingdom Holding, together with its chairman Prince Alwaleed bin Talal, owns a 0.63% stake in SpaceX. The investment firm stated that a valuation of $1.75 trillion for SpaceX would place the value of its holding at approximately $10.6 billion. Recent media reports suggest SpaceX is targeting an even higher valuation of at least $1.8 trillion.
Prince Alwaleed is the majority shareholder of Kingdom Holding with a 78% stake, while Saudi Arabia’s Public Investment Fund (PIF) holds 17%. The remaining 5% of the company is free float.
Despite the positive market reaction, Kingdom Holding reported a 38% year-on-year drop in its first-quarter net profit to SAR269 million ($72 million). Meanwhile, SpaceX’s first-quarter revenue grew to $4.7 billion, though its net loss widened to $4.3 billion from $528 million a year earlier.
About Kingdom Holding
Kingdom Holding Company is a publicly listed investment firm based in Riyadh, Saudi Arabia. Chaired by Prince Alwaleed bin Talal, the company holds a diversified portfolio of investments in sectors including technology, hospitality, banking, and aviation. Its major holdings include stakes in companies such as Uber, X Corp, Citigroup, and Flynas.
Source: AGBI
