Saudi Technology Fund (STF)

FundsSpot is a brokerage platform that offers a comprehensive service for automating the trading of closed-end fund units. The fund manager benefits by providing such trading services to their clients. It offers them a reliable environment to list their units for sale and search for units they wish to purchase.

PropertyNet is a leading property management software in the Middle East, designed especially for the entire Middle Eastern market, and the international markets in the future. With a single point of access, all real estate professionals can manage their properties and units modernly while reducing operational costs and promoting new revenue streams. PropertyNet was founded in 1999 by knowledgeNet Co., with headquarters in Saudi Arabia and offices in Egypt and UAE.

xTech is a fintech solutions provider, founded in 2022 with business operations starting in 2024. Headquartered in Riyadh, with a development and service center in Cairo, xTech specializes in developing cutting-edge software and providing managed IT services to enhance operational efficiency for financial institutions. Their offerings include fintech solutions, IT management, solution customization, and business operations support.

Takharoj is a fintech startup based in Saudi Arabia, and owned by xTech and Amwal. Takharoj is a trading platform for unlisted companies whose shares are not available for public trading. Takharoj provides a secure and efficient marketplace for trading transactions, bridging the gap between investors and unlisted companies.

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The Saudi Technology Fund (STF) is a closed-end, multi-investment private fund aiming to achieve medium- and long-term capital growth while distributing periodic cash dividends through acquiring majority or minority stakes in Information Technology, financial services, and fintech companies. The fund manager has acquired four IT and fintech companies from KnowledgeNet Company for a total value of SAR 68.6 million, in exchange for issuing 6,860,000 in-kind units valued at SAR 10 per unit to be owned by the company’s shareholders. The target fund size is SAR 100 million.

The Sum-Of-The-Parts (SOTP) valuation has a significant growth potential of +56% with an IRR of 59.3%. The pricing of xTech services incorporates a 5% equity stake in clients’ company valuations yet does not contribute to the overall fund valuation. Key growth drivers include robust digital transformation, government initiatives such as the Saudi Public Investment Fund (PIF) programs, and the accelerated adoption of digital services. Additionally, a youthful, tech-savvy demographic and advancements in financial technologies bolster the growth outlook. The fund aims to address the underserved demand for fintech solutions, promoting financial inclusion and meeting evolving consumer needs.

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