So what happened after Kingdom Holding Company ("KHC") made the announcement on 5 January 2010 about its planed reduction in share capital and the donation of 180 million shares of Citigroup stock by Prince AlWaleed Bin Talal to KHC?
On 6 January, trading exploded (in a relative sense) from 1.4 million shares the day before to 28.6 million shares. KHC's share price rose from SAR 4.7 per share to close at SAR 5.15. This gain of SAR0.45 was roughly in line with the value of the Citi stock contributed by Prince AlWaleed (SAR 2.24 billion divided by 6.3 billion shares of stock outstanding).
On 9 January, trading was similarly elevated with 20.5 million shares changing hands. The closing price was SAR 5.00 per share.
Let's look a bit closer at trading on the 9th. Details are at the Saudi Exchange website.
- With 6,3 billion shares, 20.5 million shares represent about 0.3% of total shares. Looking at free float (5%), the day's trading is still small at 6.5% of free float (315 million shares).
- There were 3,987 transactions for an average "ticket" of 5,152 shares. Retail. Small investors.
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