The Public Investment Fund (PIF) of Saudi Arabia has purchased a $1.5 billion stake in Saudi billionaire Prince Alwaleed Bin Talal’s investment fund.
The PIF paid Prince Alwaleed 9.09 riyals per share for a 16.9% stake in Kingdom Holding Co, which was the closing price on the last trading day before the transaction was announced.
Prince Alwaleed will retain a 78.13 percent stake in KHC, with the remaining 5% listed on the Saudi stock exchange.
Bloomberg reported that the company’s shares rose nearly 10% to 9.99 riyals in Riyadh on Sunday, bringing their year-to-date loss to 1.1 percent.
According to Bloomberg, Alwaleed’s investment brings him closer to the Saudi government after years of operating independently. His grandfather was the founder of modern Saudi Arabia.
Saudi Crown Prince Mohammed bin Salman chairs the PIF sovereign wealth fund, which is a key part of his plan to diversify the country’s economy away from oil.
After taking stakes in Citigroup, Apple, and Twitter, Prince Alwaleed, 67, became one of the most well-known Saudi investors.
According to Bloomberg, he has backed a number of Prince Mohammed bin Salman’s modernization initiatives, including allowing women to drive.
