Solowin Holdings signs MOU with CITIC for Saudi digital infrastructure

HONG KONG - Solowin Holdings (NASDAQ:SWIN), a $224 million market cap company whose stock has surged over 237% in the past six months, announced Wednesday that its US$-denominated fund, Solomon Capital SP, has entered a Memorandum of Understanding with CITIC Contracting Company to co-develop digital infrastructure in Saudi Arabia. InvestingPro data shows the company’s remarkable price momentum, with multiple indicators suggesting high market interest.

The three-year agreement will initially focus on data science, commercial real estate, and logistics parks, according to a company press release. The partnership aims to integrate Solowin’s technology platform with CITIC’s real estate investment expertise to address demand for real-world asset tokenization in the Middle East. While the company maintains an impressive 85.7% gross profit margin, InvestingPro analysis indicates challenges with profitability in recent quarters.

"This partnership aligns with Saudi Vision 2030’s digital transformation goals," said Peter Lok, CEO of Solowin. "By combining CITIC’s on-ground execution capabilities with our regulated stablecoin infrastructure, we create a blueprint for modernizing traditional assets."

CITIC Contracting Company, a subsidiary of China CITIC Group, has been ranked among the top 250 global contractors by Engineering News-Record for several years.

The companies indicated that detailed investment terms will be formalized in subsequent binding agreements. The collaboration follows Solowin’s recent initiatives in Web3 finance.

Solowin Holdings, founded in 2016, operates through Hong Kong Securities and Futures Commission licensed subsidiaries with digital asset capabilities. The company provides services across traditional finance and real-world asset tokenization. According to InvestingPro analysis, the stock currently trades above its Fair Value, with additional insights available through InvestingPro’s comprehensive financial health scoring system.

In other recent news, Solowin Holdings has announced a series of strategic initiatives and financial developments. The company has entered an equity purchase agreement to acquire a 19% stake in GPL Remittance Pte. Ltd., a Singapore-based payment institution with a Major Payment Institution license. This acquisition marks a significant move in enhancing Solowin’s cross-border payment capabilities. Additionally, Solowin aims to reach $1 billion in assets under management for its USD Money Market Real Yield Token by the end of 2025, a product launched through its subsidiary in partnership with major financial firms.

In another development, Solowin plans to launch a joint Bitcoin quantitative fund with Antalpha, targeting $100 million in assets under management, focusing on algorithmic trading strategies. The company has also announced a $3.5 million share sale through a registered direct offering, involving approximately 10.6 million Class A Ordinary Shares. The proceeds from this share sale are intended to support Solowin’s working capital and general corporate needs. These recent developments underscore Solowin’s strategic efforts to expand its financial offerings and operational capabilities.

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