We're posting up notes from the Sohn London investment conference. Next up is Fadi Arbid of Amwal Capital who presented an arbitrage trade: short of Kuwait Finance House and a long of Ahli United Bank.
Fadi Arbid's Sohn London Conference Presentation
The Saudi market is inefficient. Approx. 60% of daily volume is conducted by retail investors. It has a low level of analyst coverage. Shorting has only been allowed recently.
Idea: merger arbitrage. Short Kuwait Finance House, Long Ahli United Bank (AUB).
Both are Islamic banks that are listed in Kuwait. Kuwait Finance House is the largest Islamic bank operating mainly in Kuwait, Malaysia and Turkey. AUB is focused on Kuwait, Bahrain, UAE, Egypt.
Both banks have a common shareholder in the government of Kuwait. There is still a 12% spread. Expect the deal to close in Q1 2020.
Be sure to check out the rest of the presentations from Sohn London conference 2019.
Monday, December 9, 2019
Fadi Arbid Long Ahli United Bank, Short Kuwait Finance House: Sohn London Conference
blog comments powered by Disqus
