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Kingdom Holding Co. (KHC) Chairman Prince Alwaleed bin Talal stated that the company's shares trade at a 35.5% discount to their net asset value (NAV), currently priced below SAR 14 compared to a NAV of SAR 21.05. He further argued that the fair value of the stock is SAR 31.57 per share, 50% above the NAV, citing undervaluation. KHC holds a 0.63% stake in SpaceX, valued between $8.32 billion and $10.55 billion ahead of its IPO. The stock surged 10% to SAR 13.58 on May 31, marking a 27% gain in three sessions and its highest close since 2016.
The discount highlights potential mispricing in the Saudi equity market, which could attract value investors seeking long-term gains. Traders may monitor KHC's performance as it reflects broader investor sentiment toward high-profile Saudi equities. The recent price rebound suggests renewed interest, though volatility remains a risk due to market speculation about the SpaceX stake's valuation.
For Gulf investors, the discount presents an opportunity to assess KHC's fundamentals against its market price. Key factors to watch include the SpaceX IPO's impact on KHC's portfolio and any corporate actions to bridge the valuation gap. The stock's performance could influence broader market confidence in Saudi blue-chip equities.
