EV Maker XPeng Climbs 41% in Debut After $1.5 Billion IPO - Bloomberg:
Chinese electric-car startup XPeng Inc. rose 41% in its trading debut after raising $1.5 billion in a U.S. initial public offering.
XPeng’s American depositary shares closed at $21.22 in New York trading Thursday after rising as much as 67% earlier in the day. The company, with a market value of about $15 billion, sold 99.7 million shares Wednesday for $15 each after expanding the size of its offering and pricing the shares above a marketed range.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. Li’s shares, which fell 17% Wednesday, are still up 69% from its offer price.
XPeng Vice Chairman Brian Gu said competition among electric vehicle makers is helping speed their adoption.
Thursday 27 August 2020
Top #Dubai, Israeli Banks in Cooperation Talks After Peace Deal - Bloomberg
Top Dubai, Israeli Banks in Cooperation Talks After Peace Deal - Bloomberg:
The biggest banks in Dubai and Israel are in talks to cooperate following this month’s landmark peace agreement between the Jewish state and the United Arab Emirates.
Discussions between Bank Leumi and Emirates NBD Bank PJSC are at an early stage and no final decisions have been made, according to a person familiar with the matter, who asked not to be identified because the matter is private. The person declined to give further details.
While Shmulik Arbel, head of Leumi’s corporate division, said on a conference call on Thursday that the Tel Aviv-based lender is in cooperation negotiations with a “leading bank in Dubai,” he didn’t identify the company. Leumi and Emirates NBD declined to comment.
A deal would be the first commercial cooperation between Israeli and UAE banks since the countries announced on Aug. 13 that they reached a U.S.-brokered agreement to begin normalizing relations. Talks between various parties from startups to airlines have already started as investors prepare for what could be an economic boon for both sides as they end decades of hostility.
The biggest banks in Dubai and Israel are in talks to cooperate following this month’s landmark peace agreement between the Jewish state and the United Arab Emirates.
Discussions between Bank Leumi and Emirates NBD Bank PJSC are at an early stage and no final decisions have been made, according to a person familiar with the matter, who asked not to be identified because the matter is private. The person declined to give further details.
While Shmulik Arbel, head of Leumi’s corporate division, said on a conference call on Thursday that the Tel Aviv-based lender is in cooperation negotiations with a “leading bank in Dubai,” he didn’t identify the company. Leumi and Emirates NBD declined to comment.
A deal would be the first commercial cooperation between Israeli and UAE banks since the countries announced on Aug. 13 that they reached a U.S.-brokered agreement to begin normalizing relations. Talks between various parties from startups to airlines have already started as investors prepare for what could be an economic boon for both sides as they end decades of hostility.
FTSE Russell launches local currency #Saudi government bond index | ZAWYA MENA Edition
FTSE Russell launches local currency Saudi government bond index | ZAWYA MENA Edition:
Global index provider FTSE Russell said on Thursday it had launched a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, a move which could lead to new inflows to the Saudi market.
The FTSE Saudi Arabian Government Bond Index will cover sukuk and non-sukuk government bonds with at least one year to maturity and a minimum amount outstanding of 1 billion riyals ($266.65 million). Sukuk are Islamic bonds.
Riyadh's government bond market will be reviewed by FTSE Russell in its Fixed Income Country Classification review next month, which could lead to an inclusion of Saudi domestic bonds in the FTSE Emerging Markets Government Bond Index (EMGBI).
As of July 31, 2020, 45 Saudi securities with a total market value of 273.2 billion riyals ($72.9 billion) were eligible for inclusion in the index, according to the FTSE statement.
Global index provider FTSE Russell said on Thursday it had launched a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, a move which could lead to new inflows to the Saudi market.
The FTSE Saudi Arabian Government Bond Index will cover sukuk and non-sukuk government bonds with at least one year to maturity and a minimum amount outstanding of 1 billion riyals ($266.65 million). Sukuk are Islamic bonds.
Riyadh's government bond market will be reviewed by FTSE Russell in its Fixed Income Country Classification review next month, which could lead to an inclusion of Saudi domestic bonds in the FTSE Emerging Markets Government Bond Index (EMGBI).
As of July 31, 2020, 45 Saudi securities with a total market value of 273.2 billion riyals ($72.9 billion) were eligible for inclusion in the index, according to the FTSE statement.
Chinese EV maker Xpeng shares jump 54% in NYSE debut - Reuters
Chinese EV maker Xpeng shares jump 54% in NYSE debut - Reuters:
Chinese electric vehicle maker Xpeng Inc’s shares jumped 54% in their debut on the New York Stock Exchange on Thursday, after raising $1.5 billion in its upsized initial public offering.
Shares of Xpeng, which counts Chinese e-commerce titan Alibaba and Xiaomi Corp among its backers, opened at $23.10 per American Depositary Share (ADS), up from the raised offer price of $15 per ADS.
Chinese electric vehicle maker Xpeng Inc’s shares jumped 54% in their debut on the New York Stock Exchange on Thursday, after raising $1.5 billion in its upsized initial public offering.
Shares of Xpeng, which counts Chinese e-commerce titan Alibaba and Xiaomi Corp among its backers, opened at $23.10 per American Depositary Share (ADS), up from the raised offer price of $15 per ADS.
Oil prices slip as Hurricane Laura's blow unlikely to have sustained impact - Reuters
Oil prices slip as Hurricane Laura's blow unlikely to have sustained impact - Reuters:
Oil prices eased on Thursday as the market expected a quick recovery for production platforms shuttered ahead of a hurricane that churned through the Gulf of Mexico and slammed Louisiana.
Brent crude LCOc1 futures for October, which expire on Friday, fell 55 cents, or 1.2%, to settle at $45.09 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 35 cents or 0.8% to $43.04 a barrel.
The storm hit Louisiana early Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding.
Oil producers on Tuesday had shut 1.56 million barrels per day (bpd) of crude output, or 84% of the Gulf of Mexico’s production, evacuating 310 offshore facilities.
Oil prices eased on Thursday as the market expected a quick recovery for production platforms shuttered ahead of a hurricane that churned through the Gulf of Mexico and slammed Louisiana.
Brent crude LCOc1 futures for October, which expire on Friday, fell 55 cents, or 1.2%, to settle at $45.09 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 35 cents or 0.8% to $43.04 a barrel.
The storm hit Louisiana early Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding.
Oil producers on Tuesday had shut 1.56 million barrels per day (bpd) of crude output, or 84% of the Gulf of Mexico’s production, evacuating 310 offshore facilities.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
RPT-Defying economic gloom, #Iran's oil firms propel bourse to record high - Reuters
RPT-Defying economic gloom, Iran's oil firms propel bourse to record high - Reuters:
The coronavirus crisis, an oil price shock and crippling U.S. sanctions on Iran’s energy and banking sectors have brought the country’s economy to its knees. Yet the Tehran Stock Exchange is home to one of the top performing equity indexes in the world.
Iran’s benchmark TSE index (TEDPIX) has soared 330% since the start of the year in local currency terms thanks to a breathtaking rally in oil firms, refineries and the petrochemical industry - accounting for more than a third of the top 30 companies.
The steep ascent, however, may have little to do with confidence in the country’s future. Instead, it mirrors events in Venezuela and Zimbabwe, where indexes have surged more than 400% in local terms amid rising inflation and capital controls.
“Stock market gains in Iran should not be viewed as a signal of economic stabilisation, but rather a reflection of hyperinflation and trapped capital, more akin to Zimbabwe than Russia or Saudi Arabia,” said Hasnain Malik, head of equity research at Tellimer.
The coronavirus crisis, an oil price shock and crippling U.S. sanctions on Iran’s energy and banking sectors have brought the country’s economy to its knees. Yet the Tehran Stock Exchange is home to one of the top performing equity indexes in the world.
Iran’s benchmark TSE index (TEDPIX) has soared 330% since the start of the year in local currency terms thanks to a breathtaking rally in oil firms, refineries and the petrochemical industry - accounting for more than a third of the top 30 companies.
The steep ascent, however, may have little to do with confidence in the country’s future. Instead, it mirrors events in Venezuela and Zimbabwe, where indexes have surged more than 400% in local terms amid rising inflation and capital controls.
“Stock market gains in Iran should not be viewed as a signal of economic stabilisation, but rather a reflection of hyperinflation and trapped capital, more akin to Zimbabwe than Russia or Saudi Arabia,” said Hasnain Malik, head of equity research at Tellimer.
Sovereign wealth funds stampede into stocks outside the U.S. - Reuters
Sovereign wealth funds stampede into stocks outside the U.S. - Reuters:
Sovereign wealth funds poured a net $7.1 billion into stocks during the second quarter, the most in several years, with the bulk outside the United States, data showed on Thursday.
The funds also pulled a net $5.2 billion out of fixed income during that period, the most since the first quarter of 2019, according to the eVestment data on strategies managed by third-party fund managers.
Global large-cap growth equity strategies took in the most investment during the quarter, a net $6 billion. U.S. equity strategies pulled in only a net $704 million during that time.
That was far short of the flows into U.S. equities in the first quarter as the coronavirus spread around the world.
Sovereign wealth funds poured a net $7.1 billion into stocks during the second quarter, the most in several years, with the bulk outside the United States, data showed on Thursday.
The funds also pulled a net $5.2 billion out of fixed income during that period, the most since the first quarter of 2019, according to the eVestment data on strategies managed by third-party fund managers.
Global large-cap growth equity strategies took in the most investment during the quarter, a net $6 billion. U.S. equity strategies pulled in only a net $704 million during that time.
That was far short of the flows into U.S. equities in the first quarter as the coronavirus spread around the world.
EV Maker XPeng Raising $1.5 Billion in Expanded, Above-Range IPO - Bloomberg
EV Maker XPeng Raising $1.5 Billion in Expanded, Above-Range IPO - Bloomberg:
Chinese electric-car startup XPeng Inc. is raising about $1.5 billion in a U.S. initial public offering, expanding the size of its share sale and pricing the shares above a marketed range.
The company is selling 99.7 million American depositary shares on for $15 each, based on a filing Wednesday with the U.S. Securities and Exchange Commission. The Guangzhou-based company had marketed 85 million shares for $11 to $13 apiece. The company will be valued in the offering at $10.8 billion based on the outstanding shares listed in its filings.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. The stock has since more than doubled from its offer price.
For the six months ended June 30, XPeng said it had a net loss of $113 million on revenue of $142 million. XPeng delivered 18,741 of its first vehicle, the G3 SUV, through July 31, according to the company’s filings. It started deliveries of its second model, the P7 sedan, in May, shipping 1,966 units by July 31, according to its filings.
Chinese electric-car startup XPeng Inc. is raising about $1.5 billion in a U.S. initial public offering, expanding the size of its share sale and pricing the shares above a marketed range.
The company is selling 99.7 million American depositary shares on for $15 each, based on a filing Wednesday with the U.S. Securities and Exchange Commission. The Guangzhou-based company had marketed 85 million shares for $11 to $13 apiece. The company will be valued in the offering at $10.8 billion based on the outstanding shares listed in its filings.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. The stock has since more than doubled from its offer price.
For the six months ended June 30, XPeng said it had a net loss of $113 million on revenue of $142 million. XPeng delivered 18,741 of its first vehicle, the G3 SUV, through July 31, according to the company’s filings. It started deliveries of its second model, the P7 sedan, in May, shipping 1,966 units by July 31, according to its filings.
Guangzhou-based XPeng closed its latest funding round for a total of $900 million, according to its filings. Qatar Investment Authority put in $100 million, while Abu Dhabi’s Mubadala invested another $100 million, the company said in the prospectus. Alibaba Group Holding Ltd. also contributed $215 million, boosting its investment in XPeng.
#Saudi Aramco Appoints New CEO for $500 Million Investment Arm - Bloomberg
Saudi Aramco Appoints New CEO for $500 Million Investment Arm - Bloomberg:
Saudi Aramco appointed a new chief executive officer to run its $500 million venture capital and investments arm after the previous head departed, according to people with knowledge of the situation.
Mahdi Aladel, who formerly led the state energy producer’s base oils and lubricants division, will take over as CEO of Saudi Aramco Energy Ventures LLC, according to the people, who asked not to be identified because the information hasn’t been made public. A LinkedIn page appearing to belong to Aladel said he’d started the new role this month.
Aramco is the world’s biggest oil exporter and provides most of the income for the Persian Gulf kingdom. SAEV invests in early-stage oil, gas, renewable and chemicals technologies that can potentially benefit the parent company. SAEV generally spends several million to tens of millions of dollars on each acquisition, focusing on companies developing drilling techniques, chemical applications or blockchain-based trading.
Saudi Aramco appointed a new chief executive officer to run its $500 million venture capital and investments arm after the previous head departed, according to people with knowledge of the situation.
Mahdi Aladel, who formerly led the state energy producer’s base oils and lubricants division, will take over as CEO of Saudi Aramco Energy Ventures LLC, according to the people, who asked not to be identified because the information hasn’t been made public. A LinkedIn page appearing to belong to Aladel said he’d started the new role this month.
Aramco is the world’s biggest oil exporter and provides most of the income for the Persian Gulf kingdom. SAEV invests in early-stage oil, gas, renewable and chemicals technologies that can potentially benefit the parent company. SAEV generally spends several million to tens of millions of dollars on each acquisition, focusing on companies developing drilling techniques, chemical applications or blockchain-based trading.
Middle East Economies: Gulf States Head Deeper Into Deflation as Pandemic Grips - Bloomberg
Middle East Economies: Gulf States Head Deeper Into Deflation as Pandemic Grips - Bloomberg:
The world’s steepest deflation is set to linger across Gulf Arab states as the coronavirus pandemic broadens a slump in prices that started with a downturn in their housing markets.
Price declines in Qatar, Bahrain and the United Arab Emirates are currently the biggest among more than 80 countries tracked on Bloomberg’s Global Economy Watch. Oman, another of the six members of the Gulf Cooperation Council, isn’t far behind. Inflation has been positive in Kuwait and recently picked up in Saudi Arabia after it tripled its value-added tax.
The world’s steepest deflation is set to linger across Gulf Arab states as the coronavirus pandemic broadens a slump in prices that started with a downturn in their housing markets.
Price declines in Qatar, Bahrain and the United Arab Emirates are currently the biggest among more than 80 countries tracked on Bloomberg’s Global Economy Watch. Oman, another of the six members of the Gulf Cooperation Council, isn’t far behind. Inflation has been positive in Kuwait and recently picked up in Saudi Arabia after it tripled its value-added tax.
Restrictions imposed to stop the virus have translated into record deflation from Qatar to the UAE as social-distancing rules, job losses and the departure of foreign workers crushed consumer demand. Adding to the drag from housing, a downswing in oil is another challenge for the region’s $1.6 trillion economy, putting it on course for what could be its worst recession on history.
Israeli tech's 'thirst' for #UAE cash must overcome old enmity - Reuters
Israeli tech's 'thirst' for UAE cash must overcome old enmity - Reuters:
A thaw in relations between Israel and the United Arab Emirates has raised expectations of an influx of funding in ‘Silicon Wadi’, Israel’s answer to Silicon Valley.
“The UAE has excess amounts of money, but not enough places to invest it in the Middle East,” said Eldad Tamir, founder and CEO of the Tamir Fishman investment house, one of Israel’s top investment funds.
“The high tech sector here is thirsty for money and having new investors from the UAE will help us diversify a bit from our usual Chinese and American investor.”
But deep-seated animosity towards Israel among some investors could cap inflows, according to investment bankers and fund managers in the UAE, the Middle East’s financial hub.
A thaw in relations between Israel and the United Arab Emirates has raised expectations of an influx of funding in ‘Silicon Wadi’, Israel’s answer to Silicon Valley.
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| Israeli national flags flutter at a business park also housing high tech companies, at Ofer Park in Petah Tikva, Israel August 27, 2020. REUTERS/Ronen Zvulun |
“The UAE has excess amounts of money, but not enough places to invest it in the Middle East,” said Eldad Tamir, founder and CEO of the Tamir Fishman investment house, one of Israel’s top investment funds.
“The high tech sector here is thirsty for money and having new investors from the UAE will help us diversify a bit from our usual Chinese and American investor.”
But deep-seated animosity towards Israel among some investors could cap inflows, according to investment bankers and fund managers in the UAE, the Middle East’s financial hub.
Delivery Hero buys InstaShop to expand in Middle East, North Africa - Reuters
Delivery Hero buys InstaShop to expand in Middle East, North Africa - Reuters:
German online takeaway food group Delivery Hero (DHER.DE) said on Thursday it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.
InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of $300 million, Delivery Hero said.
It said the Dubai-based firm would continue to operate as an independent brand under the current leadership.
Berlin-based Delivery Hero said its takeover of InstaShop was based on a valuation of $360 million. The initial purchase price was $270 million, and the size of the deferred component to InstaShop’s founding team will be dependent on growth and profitability in the future.
German online takeaway food group Delivery Hero (DHER.DE) said on Thursday it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.
InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of $300 million, Delivery Hero said.
It said the Dubai-based firm would continue to operate as an independent brand under the current leadership.
Berlin-based Delivery Hero said its takeover of InstaShop was based on a valuation of $360 million. The initial purchase price was $270 million, and the size of the deferred component to InstaShop’s founding team will be dependent on growth and profitability in the future.
Oil prices steady as Gulf of Mexico coast braces for Hurricane Laura - Reuters
Oil prices steady as Gulf of Mexico coast braces for Hurricane Laura - Reuters:
Oil prices held steady on Thursday as a massive hurricane in the Gulf of Mexico raced towards the heart of the U.S. oil industry, which has forced oil rigs and refineries to shut down production.
Brent crude LCOc1 futures for October, which expire on Friday, rose 13 cents, or, 0.3% to $45.77 a barrel by 0540 GMT, having fallen 22 cents, or 0.5%, on Wednesday. The more active November Brent contract LCOc2 was up 10 cents at $46.26 per barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures inched up 1 cent to $43.40 a barrel.
The threat from Hurricane Laura has pushed the market higher this week, but the storm is not expected to affect supplies much because oil and product inventories remain high due to the coronavirus pandemic’s hit to fuel demand.
Oil prices held steady on Thursday as a massive hurricane in the Gulf of Mexico raced towards the heart of the U.S. oil industry, which has forced oil rigs and refineries to shut down production.
Brent crude LCOc1 futures for October, which expire on Friday, rose 13 cents, or, 0.3% to $45.77 a barrel by 0540 GMT, having fallen 22 cents, or 0.5%, on Wednesday. The more active November Brent contract LCOc2 was up 10 cents at $46.26 per barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures inched up 1 cent to $43.40 a barrel.
The threat from Hurricane Laura has pushed the market higher this week, but the storm is not expected to affect supplies much because oil and product inventories remain high due to the coronavirus pandemic’s hit to fuel demand.
MIDEAST STOCKS-Major Gulf bourses as financials weigh - Reuters
MIDEAST STOCKS-Major Gulf bourses as financials weigh - Reuters:
Financial stocks pressured major indexes in the Gulf in early trade on Thursday, with Saudi British Bank (SABB) weighing on the Saudi index.
The kingdom’s benchmark index eased 0.1%, dragged down by a 1.6% drop in Saudi British Bank and a 0.3% fall in Al Rajhi Bank.
SABB on Tuesday had reported a net loss widened to 6.87 billion riyals ($1.83 billion) in the quarter compared with a loss of 196 million riyals a year earlier, due to an impairment in goodwill worth 7.42 billion riyals.
Dubai’s main share index dropped 0.4%, with its largest lender Emirates NBD falling 2.2%, while developer DAMAC Properties was down 1.3%.
In Abu Dhabi, the index lost 0.3%, hurt by Abu Dhabi Commercial Bank’s 2.1% fall and First Abu Dhabi Bank 0.2% decrease.
The Qatari index slipped 0.2%, weighed by a 0.4% drop in Qatar National Bank and a 0.9% decline in utility firm Qatar Electricity and Water.
Financial stocks pressured major indexes in the Gulf in early trade on Thursday, with Saudi British Bank (SABB) weighing on the Saudi index.
The kingdom’s benchmark index eased 0.1%, dragged down by a 1.6% drop in Saudi British Bank and a 0.3% fall in Al Rajhi Bank.
SABB on Tuesday had reported a net loss widened to 6.87 billion riyals ($1.83 billion) in the quarter compared with a loss of 196 million riyals a year earlier, due to an impairment in goodwill worth 7.42 billion riyals.
Dubai’s main share index dropped 0.4%, with its largest lender Emirates NBD falling 2.2%, while developer DAMAC Properties was down 1.3%.
In Abu Dhabi, the index lost 0.3%, hurt by Abu Dhabi Commercial Bank’s 2.1% fall and First Abu Dhabi Bank 0.2% decrease.
The Qatari index slipped 0.2%, weighed by a 0.4% drop in Qatar National Bank and a 0.9% decline in utility firm Qatar Electricity and Water.