Saudi Aramco IPO: Central Bank Doubles Lending - Bloomberg:
Saudi Arabia’s central bank doubled leverage limits for retail investors looking to buy shares in state oil giant Saudi Aramco, according to people familiar with the matter, part of an effort to boost local demand for what could be the world’s largest initial public offering.
Saudi banks will be permitted to give leverage to retail customers investing in Aramco at a ratio of 2 to 1 for every riyal they put toward buying shares, up from the normal regulatory limit of 1 to 1, the people said, asking not to be identified because the decision isn’t public. Banks are permitted to give corporate and institutional customers higher leverage ratios still based on each customers creditworthiness, the people said.
The Saudi Arabian Monetary Authority, as the kingdom’s central bank is known, didn’t respond to requests to comment.
Saudi Aramco opened book building for it much anticipated IPO on Sunday, pricing its shares at between 30 to 32 riyals. That would give the company a valuation of up to $1.71 trillion at the top end of the range, well below the $2 trillion target sought by Crown Prin
Sunday, 17 November 2019
#Saudi Aramco IPO: Seeks to Sell Up to $25.6 Billion in Shares - Bloomberg
Saudi Aramco IPO: Seeks to Sell Up to $25.6 Billion in Shares - Bloomberg:
Saudi Arabia set a valuation target for Aramco’s initial public offering well below Crown Prince Mohammed bin Salman’s goal of $2 trillion and pared back the size of the sale to ensure the world’s largest oil producer successfully lists on the Riyadh stock exchange next month.
The Saudi central bank also relaxed lending limits to boost demand from local investors after bankers were unable to convince many international money managers of the merits of the deal.
Aramco will sell just 1.5% of its shares on the the local stock exchange, about half the amount that had been considered, and seek a valuation of between $1.6 trillion and $1.71 trillion.
Saudi Arabia set a valuation target for Aramco’s initial public offering well below Crown Prince Mohammed bin Salman’s goal of $2 trillion and pared back the size of the sale to ensure the world’s largest oil producer successfully lists on the Riyadh stock exchange next month.
The Saudi central bank also relaxed lending limits to boost demand from local investors after bankers were unable to convince many international money managers of the merits of the deal.
Aramco will sell just 1.5% of its shares on the the local stock exchange, about half the amount that had been considered, and seek a valuation of between $1.6 trillion and $1.71 trillion.
#Saudi Aramco will not market IPO in the United States: sources - Reuters
Saudi Aramco will not market IPO in the United States: sources - Reuters:
Saudi Aramco does not plan to market its domestic initial public offering (IPO) in the United States, two sources familiar with the matter said.
Aramco had said in its IPO prospectus earlier this month that the offering of shares would rely on the 144A rule of the U.S. Securities Act, which allows a non-U.S. issuer to tap the U.S. market.
The sources said Aramco will no longer rely on that rule, meaning it will not market the shares in the United States.
Saudi Aramco does not plan to market its domestic initial public offering (IPO) in the United States, two sources familiar with the matter said.
Aramco had said in its IPO prospectus earlier this month that the offering of shares would rely on the 144A rule of the U.S. Securities Act, which allows a non-U.S. issuer to tap the U.S. market.
The sources said Aramco will no longer rely on that rule, meaning it will not market the shares in the United States.
Boeing, Airbus kept in suspense over big #Dubai jet deals - Reuters
Boeing, Airbus kept in suspense over big Dubai jet deals - Reuters:
Airbus (AIR.PA) and Boeing (BA.N) fought to save billions of dollars of jet deals on Sunday as host airline Emirates kept the Dubai Airshow in suspense over dozens of tentative orders designed to fine-tune the world’s largest international airline network.
The world’s top jetmakers are trying to win final approval for more than $30 billion in orders from Emirates that have been on ice for up to two years as Emirates protests about industrial delays.
Interlocking deals involving a total of 110 Boeing 787 and Airbus A330neo and A350 are up for grabs, but it remains unclear whether there was room for all them in Emirates’ revised fleet, delegates said.
Emirates wants to reduce an order for 150 Boeing 777X after deliveries were pushed back by a year and may use at least part of the 787 order as leverage.
Airbus (AIR.PA) and Boeing (BA.N) fought to save billions of dollars of jet deals on Sunday as host airline Emirates kept the Dubai Airshow in suspense over dozens of tentative orders designed to fine-tune the world’s largest international airline network.
The world’s top jetmakers are trying to win final approval for more than $30 billion in orders from Emirates that have been on ice for up to two years as Emirates protests about industrial delays.
Interlocking deals involving a total of 110 Boeing 787 and Airbus A330neo and A350 are up for grabs, but it remains unclear whether there was room for all them in Emirates’ revised fleet, delegates said.
Emirates wants to reduce an order for 150 Boeing 777X after deliveries were pushed back by a year and may use at least part of the 787 order as leverage.
MIDEAST STOCKS-FAB drags down #AbuDhabi; other mkts steady - Reuters
MIDEAST STOCKS-FAB drags down Abu Dhabi; other mkts steady - Reuters:
Abu Dhabi's stock market fell sharply on
Sunday, weighed down by the country's largest lender First Abu
Dhabi Bank, while other Gulf markets were mostly flat.
In Abu Dhabi, the index slid 1.5%, its biggest fall
since August, as First Abu Dhabi Bank (FAB) retreated
2.4%, while telecoms firm Emirates Telecommunications
was down 1.2%.
Among other stocks, Aldar Properties declined
2.7%, extending losses for a fourth straight session.
The property developer reported on Nov. 12 a near 8% drop in
third-quarter profit.
Arqaam Capital had a net profit forecast of 435 million
dirhams and EFG Hermes had projected 429 million dirhams,
whereas the firm reported a net profit of 387 million dirhams.
Abu Dhabi's stock market fell sharply on
Sunday, weighed down by the country's largest lender First Abu
Dhabi Bank, while other Gulf markets were mostly flat.
In Abu Dhabi, the index slid 1.5%, its biggest fall
since August, as First Abu Dhabi Bank (FAB) retreated
2.4%, while telecoms firm Emirates Telecommunications
was down 1.2%.
Among other stocks, Aldar Properties declined
2.7%, extending losses for a fourth straight session.
The property developer reported on Nov. 12 a near 8% drop in
third-quarter profit.
Arqaam Capital had a net profit forecast of 435 million
dirhams and EFG Hermes had projected 429 million dirhams,
whereas the firm reported a net profit of 387 million dirhams.
#Kuwait Cabinet Quit Over Corruption Suspicions, Minister Says - Bloomberg
Kuwait Cabinet Quit Over Corruption Suspicions, Minister Says - Bloomberg:
Kuwait’s government resigned last week to dodge questions over hundreds of millions of dollars missing from a military aid fund, the country’s defense minister said, sparking a rare high-profile row over suspected corruption.
The main reason for last week’s cabinet resignation is to try to “avoid presenting answers to the queries and questions presented to it about the transgressions that took place in the army fund and related accounts,” Sheikh Nasser Sabah Al-Ahmed Al-Sabah, the eldest son of Kuwait’s ruler, said in a statement.
Sheikh Nasser, who has been spearheading plans to reform the economy, claimed the “violations and suspicions” involving more than 240 million dinars ($790 million) took place before he was appointed defense minister and first deputy prime minister in 2017.
Kuwait’s government resigned last week to dodge questions over hundreds of millions of dollars missing from a military aid fund, the country’s defense minister said, sparking a rare high-profile row over suspected corruption.
The main reason for last week’s cabinet resignation is to try to “avoid presenting answers to the queries and questions presented to it about the transgressions that took place in the army fund and related accounts,” Sheikh Nasser Sabah Al-Ahmed Al-Sabah, the eldest son of Kuwait’s ruler, said in a statement.
Sheikh Nasser, who has been spearheading plans to reform the economy, claimed the “violations and suspicions” involving more than 240 million dinars ($790 million) took place before he was appointed defense minister and first deputy prime minister in 2017.
#Saudi Aramco IPO Is a Hard Sell in World Struck by Climate Change - Bloomberg
Saudi Aramco IPO Is a Hard Sell in World Struck by Climate Change - Bloomberg:
It is a bad time to buy into an oil company whose major asset is reserves in the ground that can sustain current production levels of the carbon-laden fossil fuel until near the end of the century.
Oil lost its place in the power generation market after the oil shocks of the 1970s, and it is now starting to see serious competition for powering cars, buses and trucks along with the first signs of viable alternatives for fueling maritime transport. Oil’s domination in air transport looks safer for now, and the industry forecasts the strongest growth in petrochemicals that go into everything from plastics and fertilizers to electronic gadgets and clothing. But the tide of history is moving firmly against fossil fuels.
Saudi Aramco may boast that it holds the rights to the largest reserves of crude with the lowest carbon footprint to extract, but that rather misses the point. The climate concerns around oil are not about the carbon cost of getting it out of the ground, but of what is done with it afterward.
It is a bad time to buy into an oil company whose major asset is reserves in the ground that can sustain current production levels of the carbon-laden fossil fuel until near the end of the century.
Oil lost its place in the power generation market after the oil shocks of the 1970s, and it is now starting to see serious competition for powering cars, buses and trucks along with the first signs of viable alternatives for fueling maritime transport. Oil’s domination in air transport looks safer for now, and the industry forecasts the strongest growth in petrochemicals that go into everything from plastics and fertilizers to electronic gadgets and clothing. But the tide of history is moving firmly against fossil fuels.
Saudi Aramco may boast that it holds the rights to the largest reserves of crude with the lowest carbon footprint to extract, but that rather misses the point. The climate concerns around oil are not about the carbon cost of getting it out of the ground, but of what is done with it afterward.
#UAE's Mubadala Aerospace merges its capital, MRO businesses | ZAWYA MENA Edition
UAE's Mubadala Aerospace merges its capital, MRO businesses | ZAWYA MENA Edition:
Abu Dhabi-based Mubadala Investment Company has launched Sanad, which will be the parent company of Mubadala Aerospace’s, aviation and industrial services subsidiaries.
The three subsidiaries are Sanad Aerotech, which is the specialist aircraft engine MRO (maintenance, repair, and operations) business, Sanad Powertech, the energy and industrial MRO service provider, and Sanad Capital which is a dedicated leasing firm for aerospace industry.
Sanad aims to grow the firm’s customer base regionally as well as globally, and foster long term growth of aerospace and industrial services sectors in the UAE capital.
Abu Dhabi-based Mubadala Investment Company has launched Sanad, which will be the parent company of Mubadala Aerospace’s, aviation and industrial services subsidiaries.
The three subsidiaries are Sanad Aerotech, which is the specialist aircraft engine MRO (maintenance, repair, and operations) business, Sanad Powertech, the energy and industrial MRO service provider, and Sanad Capital which is a dedicated leasing firm for aerospace industry.
Sanad aims to grow the firm’s customer base regionally as well as globally, and foster long term growth of aerospace and industrial services sectors in the UAE capital.
#Kuwait Q2 GDP declines 1.2% quarter on quarter - Reuters
Kuwait Q2 GDP declines 1.2% quarter on quarter - Reuters:
Kuwait’s gross domestic product fell 1.2% in the second quarter from the previous quarter, the government said in a statement on Sunday.
The Gulf state’s GDP totalled 9.7 billion dinars ($31.95 billion) at the end of the second quarter.
The oil sector accounted for 53.7% of GDP during the period, down from 54.1% ing the same period a year earlier, the statement said.
Kuwait’s gross domestic product fell 1.2% in the second quarter from the previous quarter, the government said in a statement on Sunday.
The Gulf state’s GDP totalled 9.7 billion dinars ($31.95 billion) at the end of the second quarter.
The oil sector accounted for 53.7% of GDP during the period, down from 54.1% ing the same period a year earlier, the statement said.
Eager Saudis prepare to snap up stakes in 'crown jewel' Aramco - Reuters
Eager Saudis prepare to snap up stakes in 'crown jewel' Aramco - Reuters:
“No voice is louder than that of the Aramco IPO, the largest IPO on earth,” declared Ahmed Al-Arfaj, a Saudi Arabian TV talk show host, drumming up demand for what could be the world’s biggest initial public offering.
State oil giant Saudi Aramco began its repeatedly delayed share sale on Sunday, offering retail investors and institutions a stake in the world’s most profitable company through a listing on Riyadh’s Tadawul bourse.
Saudis clamouring to own part of the world’s top oil exporter can go online or to local banks, which have extended working hours to meet high expected demand during a sale process that runs until Nov. 28.
“No voice is louder than that of the Aramco IPO, the largest IPO on earth,” declared Ahmed Al-Arfaj, a Saudi Arabian TV talk show host, drumming up demand for what could be the world’s biggest initial public offering.
State oil giant Saudi Aramco began its repeatedly delayed share sale on Sunday, offering retail investors and institutions a stake in the world’s most profitable company through a listing on Riyadh’s Tadawul bourse.
Saudis clamouring to own part of the world’s top oil exporter can go online or to local banks, which have extended working hours to meet high expected demand during a sale process that runs until Nov. 28.
#Saudi Stocks Fall as Aramco Seeks $1.71 Trillion IPO Valuation - Bloomberg
Saudi Stocks Fall as Aramco Seeks $1.71 Trillion IPO Valuation - Bloomberg:
Saudi stocks fell, reversing earlier gains, as investors digested the kingdom’s plan to sell a 1.5% stake in the state oil company.
The Tadawul All Share Index dropped 0.4% as of 11:58 a.m. in Riyadh, after climbing as much as 0.4%. Telecommunications stocks led declines, while Al Rajhi Bank and Alinma Bank added the most to gains.
Saudi Aramco, the world’s most profitable company, said in an updated prospectus on Sunday that it will offer shares in a range of 30 Saudi riyals to 32 Saudi riyals, for a valuation of as much as $1.71 trillion. Investors may now be positioning for what could be the world’s largest initial public offering at as much as $25.6 billion, even if the stake sale size is smaller than some analyst forecasts.
Saudi stocks fell, reversing earlier gains, as investors digested the kingdom’s plan to sell a 1.5% stake in the state oil company.
The Tadawul All Share Index dropped 0.4% as of 11:58 a.m. in Riyadh, after climbing as much as 0.4%. Telecommunications stocks led declines, while Al Rajhi Bank and Alinma Bank added the most to gains.
Saudi Aramco, the world’s most profitable company, said in an updated prospectus on Sunday that it will offer shares in a range of 30 Saudi riyals to 32 Saudi riyals, for a valuation of as much as $1.71 trillion. Investors may now be positioning for what could be the world’s largest initial public offering at as much as $25.6 billion, even if the stake sale size is smaller than some analyst forecasts.
#Saudi Aramco IPO: Seeks to Sell Up to $25.6 Billion in Shares - Bloomberg
Saudi Aramco IPO: Seeks to Sell Up to $25.6 Billion in Shares - Bloomberg:
Saudi Arabia put a valuation on state-owned oil giant Aramco of between $1.6 trillion and $1.71 trillion, well short of the $2 trillion target sought by Crown Prince Mohammed bin Salman since he first mooted an initial public offering in 2016.
Aramco will sell just 1.5% of its shares on the the local stock exchange, the Tadawul, somewhat less than expected. At the lower end of the price range, the offer would fall short of a record, coming in just below the $25 billion raised Alibaba Group Holding Ltd.’s in 2014.
While the target valuation will make Aramco the world’s biggest public company by some distance, overtaking Apple Inc., the plans are a long way from Prince Mohammed’s initial aims: a local and international listing to raise as much as $100 billion for the kingdom’s sovereign wealth fund.
Saudi Arabia put a valuation on state-owned oil giant Aramco of between $1.6 trillion and $1.71 trillion, well short of the $2 trillion target sought by Crown Prince Mohammed bin Salman since he first mooted an initial public offering in 2016.
Aramco will sell just 1.5% of its shares on the the local stock exchange, the Tadawul, somewhat less than expected. At the lower end of the price range, the offer would fall short of a record, coming in just below the $25 billion raised Alibaba Group Holding Ltd.’s in 2014.
While the target valuation will make Aramco the world’s biggest public company by some distance, overtaking Apple Inc., the plans are a long way from Prince Mohammed’s initial aims: a local and international listing to raise as much as $100 billion for the kingdom’s sovereign wealth fund.
MIDEAST STOCKS-Emirates NBD props up #Dubai; most Gulf markets down - Agricultural Commodities - Reuters
MIDEAST STOCKS-Emirates NBD props up Dubai; most Gulf markets down - Agricultural Commodities - Reuters:
Major Gulf stock markets were mostly lower early on Sunday, with financial stocks among the biggest losers, but Dubai was buoyed by gains in Emirates NBD.
The Dubai index rose 0.6% as Emirates NBD jumped 5.1%, extending gains for a second consecutive day.
On Wednesday, the emirate’s largest lender confirmed the sale of 31 million shares in Network International Holdings for 160 million pounds ($205 million).
Union Properties edged up 0.3%. It reported third-quarter losses but its losses quarter on quarter narrowed.
Major Gulf stock markets were mostly lower early on Sunday, with financial stocks among the biggest losers, but Dubai was buoyed by gains in Emirates NBD.
The Dubai index rose 0.6% as Emirates NBD jumped 5.1%, extending gains for a second consecutive day.
On Wednesday, the emirate’s largest lender confirmed the sale of 31 million shares in Network International Holdings for 160 million pounds ($205 million).
Union Properties edged up 0.3%. It reported third-quarter losses but its losses quarter on quarter narrowed.
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