ACWA Power Gets Saudi Approval to Offer 11.1% Stake in IPO - Bloomberg
Saudi Arabia’s Capital Market Authority approved an application by ACWA Power, the kingdom’s renewable energy leader, to sell an 11.1% stake in an initial public offering.
ACWA Power, also known as International Co. for Water and Power Projects, will offer 81.2 million shares in the IPO, the market authority said in a statement Wednesday. The regulatory approval is valid for six months.
The kingdom’s sovereign wealth fund holds a 50% stake in the company, which is at the forefront of Crown Prince Mohammed bin Salman’s plans to turn the world’s largest crude exporter into a renewable energy powerhouse. ACWA Power is involved in building a $5 billion green hydrogen plant at the prince’s flagship megaproject, a futuristic city-from-scratch called Neom.
While Saudi Arabia produces one-eighth of the world’s oil supply, its operational renewable energy capacity is small by regional standards.
Boosting the kingdom’s environmental credentials is a key goal for Prince Mohammed, who launched an expansive program called “Saudi Green” earlier this year that calls for planting 50 billion trees across the Middle East. He’s repeatedly said he wants half of the kingdom’s energy needs to come from renewables by 2030.
Riyadh has been the hottest market for IPOs in the Middle East over the past two years, with new offerings oversubscribed, mostly by local retail and institutional investors. In 2019, the bourse hosted the $29 billion offering of the world’s biggest oil producer, Saudi Aramco, with shares being sold mostly to Saudi investors seeking guaranteed dividends.
Wednesday, 30 June 2021
Oil rises on lower U.S. stockpiles, demand recovery | Reuters
Oil rises on lower U.S. stockpiles, demand recovery | Reuters
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after U.S. crude stockpiles fell for a sixth straight week and an OPEC report foresaw an undersupplied market this year.
The Brent crude contract for August, which expired on Wednesday, ended the session up 37 cents, or 0.5% at $75.13 a barrel. The September contract rose 34 cents to settle at $74.62 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 49 cents, or 0.7% at $73.47 a barrel.
Both benchmarks are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months. WTI rose more than 10% in June while Brent rose over 8%.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May’s poll.
U.S. crude stockpiles fell last week for the sixth straight week as refiners ramped up output in response to rising demand, the Energy Information Administration said. [EIA/S]
Inventories at Cushing, Oklahoma, the delivery point for WTI, slid to their lowest since March 2020, EIA data showed.
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after U.S. crude stockpiles fell for a sixth straight week and an OPEC report foresaw an undersupplied market this year.
The Brent crude contract for August, which expired on Wednesday, ended the session up 37 cents, or 0.5% at $75.13 a barrel. The September contract rose 34 cents to settle at $74.62 a barrel. U.S. West Texas Intermediate crude (WTI) settled up 49 cents, or 0.7% at $73.47 a barrel.
Both benchmarks are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months. WTI rose more than 10% in June while Brent rose over 8%.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May’s poll.
U.S. crude stockpiles fell last week for the sixth straight week as refiners ramped up output in response to rising demand, the Energy Information Administration said. [EIA/S]
Inventories at Cushing, Oklahoma, the delivery point for WTI, slid to their lowest since March 2020, EIA data showed.
MIDEAST STOCKS #Dubai drops as fresh virus spike in other nations stokes recovery fears | Reuters
MIDEAST STOCKS Dubai drops as fresh virus spike in other nations stokes recovery fears | Reuters
Dubai shares hit a four-week low on Wednesday, as a resurgence in COVID-19 cases in other countries across the world threatened economic recovery in the tourism-reliant market.
Dubai's main index (.DFMGI) fell for a third consecutive session to end 0.6% lower, its lowest closing since June 1, with Emirates NBD Bank (ENBD.DU) dropping 1.1%, while Sharia-compliant lender Dubai Islamic Bank (DISB.DU) declned 0.8%.
"Dubai's hard-fought position as a global and regional hub is being monitored in the context of rapidly spreading delta variant, shortly after the local government announced eased restrictions," Kaia Parv, head of investment research at FXPrimus.
On the other hand, Abu Dhabi's main index (.ADI) advanced 1.1% to hit a record high, buoyed by a 2% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD), followed by conglomerate International Holding (IHC) (IHC.AD) jumping 3.5%.
IHC has risen 24% so far this week after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake.
Saudi Arabia's benchmark index (.TASI) touched its highest level since September 2014, before closing 0.1% lower. Buoyant oil prices allowed the index to post its sixth monthly gain in a row for year-to-date gains of over 26%.
Oil giant Saudi Aramco (2222.SE) and Saudi National Bank (1180.SE) led losses with falls of 0.6% and 0.7%, respectively.
The Qatari benchmark (.QSI) slipped 0.2%, hit by a 0.7% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Negative sentiment still grips the Gulf markets as traders continue closing their positions, Parv said, adding that the pullback has become more pronounced as the week advances with investors choosing to take profits from these levels.
"Prices had become extended based on technical indicators, and a correction had been due for some time."
Outside the Gulf, Egypt's blue-chip index (.EGX30) bounced back 1.3% from a 1.5% decline a day earlier following a sell-off in blue-chip stocks, led by gains in Commercial International Bank (COMI.CA), which was up 3.3%.
Dubai shares hit a four-week low on Wednesday, as a resurgence in COVID-19 cases in other countries across the world threatened economic recovery in the tourism-reliant market.
Dubai's main index (.DFMGI) fell for a third consecutive session to end 0.6% lower, its lowest closing since June 1, with Emirates NBD Bank (ENBD.DU) dropping 1.1%, while Sharia-compliant lender Dubai Islamic Bank (DISB.DU) declned 0.8%.
"Dubai's hard-fought position as a global and regional hub is being monitored in the context of rapidly spreading delta variant, shortly after the local government announced eased restrictions," Kaia Parv, head of investment research at FXPrimus.
On the other hand, Abu Dhabi's main index (.ADI) advanced 1.1% to hit a record high, buoyed by a 2% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD), followed by conglomerate International Holding (IHC) (IHC.AD) jumping 3.5%.
IHC has risen 24% so far this week after the listing of Alpha Dhabi Holding (ALPHADHABI.AD), in which IHC holds a 45% stake.
Saudi Arabia's benchmark index (.TASI) touched its highest level since September 2014, before closing 0.1% lower. Buoyant oil prices allowed the index to post its sixth monthly gain in a row for year-to-date gains of over 26%.
Oil giant Saudi Aramco (2222.SE) and Saudi National Bank (1180.SE) led losses with falls of 0.6% and 0.7%, respectively.
The Qatari benchmark (.QSI) slipped 0.2%, hit by a 0.7% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Negative sentiment still grips the Gulf markets as traders continue closing their positions, Parv said, adding that the pullback has become more pronounced as the week advances with investors choosing to take profits from these levels.
"Prices had become extended based on technical indicators, and a correction had been due for some time."
Outside the Gulf, Egypt's blue-chip index (.EGX30) bounced back 1.3% from a 1.5% decline a day earlier following a sell-off in blue-chip stocks, led by gains in Commercial International Bank (COMI.CA), which was up 3.3%.
#SaudiArabia's PIF considers buying #Dubai design firm Depa, sources say | Reuters
Saudi Arabia's PIF considers buying Dubai design firm Depa, sources say | Reuters
Saudi Arabia's Public Investment Fund (PIF) is considering buying Dubai-listed interior design and speciality contractor Depa Plc (DEPA.DI) to fit-out hotels under construction in the kingdom, three sources with knowledge of the matter said.
Should a deal be reached, an offer would be made to Depa's biggest shareholders and the firm would be taken private, said one of the sources, declining to be identified as the matter is not public.
PIF, which holds $430 billion of assets under management, declined to comment when contacted by Reuters on Tuesday.
Depa, listed on Nasdaq Dubai, said in a statement to the bourse it was company policy not to comment on market rumours or media speculation.
Depa would continue to make required disclosures to ensure that the market was kept informed on a timely basis as appropriate, it said.
Saudi Arabia's Public Investment Fund (PIF) is considering buying Dubai-listed interior design and speciality contractor Depa Plc (DEPA.DI) to fit-out hotels under construction in the kingdom, three sources with knowledge of the matter said.
Should a deal be reached, an offer would be made to Depa's biggest shareholders and the firm would be taken private, said one of the sources, declining to be identified as the matter is not public.
PIF, which holds $430 billion of assets under management, declined to comment when contacted by Reuters on Tuesday.
Depa, listed on Nasdaq Dubai, said in a statement to the bourse it was company policy not to comment on market rumours or media speculation.
Depa would continue to make required disclosures to ensure that the market was kept informed on a timely basis as appropriate, it said.
#Qatar Petroleum posts first-quarter profit rises 36% to almost $5 bln | Reuters
Qatar Petroleum posts first-quarter profit rises 36% to almost $5 bln | Reuters
Qatar Petroleum, one of the world's top natural gas suppliers, posted a profit of 18.1 billion riyals ($4.90 billion) in the first quarter of 2021, up from 13.3 billion riyals a year prior, a bonds prospectus reviewed by Reuters showed.
The 36% rise in profit was despite revenue falling slightly to 24.3 billion riyals in the first quarter of 2021 from 24.5 billion riyals in the first quarter of 2020.
Capital expenditure by QP, its subsidiaries and joint ventures through 2025 is projected at 300 billion riyals, the prospectus said.
Qatar Petroleum, one of the world's top natural gas suppliers, posted a profit of 18.1 billion riyals ($4.90 billion) in the first quarter of 2021, up from 13.3 billion riyals a year prior, a bonds prospectus reviewed by Reuters showed.
The 36% rise in profit was despite revenue falling slightly to 24.3 billion riyals in the first quarter of 2021 from 24.5 billion riyals in the first quarter of 2020.
Capital expenditure by QP, its subsidiaries and joint ventures through 2025 is projected at 300 billion riyals, the prospectus said.
#Qatar Petroleum tightens guidance as orders top $26 billion for jumbo bond deal | Reuters
Qatar Petroleum tightens guidance as orders top $26 billion for jumbo bond deal | Reuters
Qatar Petroleum tightened the price guidance across its four-tranche bond deal by 25 basis points each after combined orders topped $26 billion, a document showed on Wednesday.
It tightened guidance to around 55 bps over U.S. Treasuries (UST) for a five-year portion, around 95 bps over UST for 10-year paper, around 120 bps over UST for 20-year notes and around 130 bps over UST for 30-year Formosa bonds, according to the document from one of the banks arranging the deal, which is expected to launch later on Wednesday.
The 10-year tranche drew the most orders, topping $8.7 billion while the Formosa tranche attracted more than $7.5 billion in demand. Formosa bonds are a category of debt sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
Qatar Petroleum tightened the price guidance across its four-tranche bond deal by 25 basis points each after combined orders topped $26 billion, a document showed on Wednesday.
It tightened guidance to around 55 bps over U.S. Treasuries (UST) for a five-year portion, around 95 bps over UST for 10-year paper, around 120 bps over UST for 20-year notes and around 130 bps over UST for 30-year Formosa bonds, according to the document from one of the banks arranging the deal, which is expected to launch later on Wednesday.
The 10-year tranche drew the most orders, topping $8.7 billion while the Formosa tranche attracted more than $7.5 billion in demand. Formosa bonds are a category of debt sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
Oil to sustain surprise rally despite Iran, third COVID-19 wave threat | Reuters
Oil to sustain surprise rally despite Iran, third COVID-19 wave threat | Reuters
Who of the traditional bulls predicted a rally that saw oil prices doubling in the last eight months? The short answer is no one.
Of more than 50 analysts polled by Reuters last October when Brent was hovering near $35 per barrel amid a second large wave of global lockdowns to slow the coronavirus pandemic, almost none dared to predict prices would approach $60.
U.S. bank Goldman Sachs saw second-quarter average prices hitting $57.50 a barrel and much smaller Houston-based consultancy Stratas Advisors had the boldest bet at $60.
As prices have exceeded $75 per barrel this June, the most accurate forecasters predict a further rally fuelled by recovering demand and tight OPEC supply – albeit at a more modest pace.
Overall, the 44 analysts polled by Reuters this month forecast benchmark Brent prices to average about $67.48 a barrel this year, up from the $64.79 consensus in May.
Who of the traditional bulls predicted a rally that saw oil prices doubling in the last eight months? The short answer is no one.
Of more than 50 analysts polled by Reuters last October when Brent was hovering near $35 per barrel amid a second large wave of global lockdowns to slow the coronavirus pandemic, almost none dared to predict prices would approach $60.
U.S. bank Goldman Sachs saw second-quarter average prices hitting $57.50 a barrel and much smaller Houston-based consultancy Stratas Advisors had the boldest bet at $60.
As prices have exceeded $75 per barrel this June, the most accurate forecasters predict a further rally fuelled by recovering demand and tight OPEC supply – albeit at a more modest pace.
Overall, the 44 analysts polled by Reuters this month forecast benchmark Brent prices to average about $67.48 a barrel this year, up from the $64.79 consensus in May.
Oil rises on lower U.S. stockpiles but OPEC warns of 2022 glut | Reuters
Oil rises on lower U.S. stockpiles but OPEC warns of 2022 glut | Reuters
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after industry data suggested U.S. crude stockpiles were shrinking while an OPEC report foresaw an undersupplied market this year, but a possible glut next year.
The Brent crude contract for August, due to expire on Wednesday, was up 83 cents, or 1.1% at $75.59 a barrel by 1224 GMT. The September contract was up 99 cents at $75.27 a barrel. U.S. crude was up $1.10, or 1.5% at $74.08 a barrel.
Both Brent and WTIs are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May's poll. read more
Oil prices rose on Wednesday, heading for monthly and quarterly gains, after industry data suggested U.S. crude stockpiles were shrinking while an OPEC report foresaw an undersupplied market this year, but a possible glut next year.
The Brent crude contract for August, due to expire on Wednesday, was up 83 cents, or 1.1% at $75.59 a barrel by 1224 GMT. The September contract was up 99 cents at $75.27 a barrel. U.S. crude was up $1.10, or 1.5% at $74.08 a barrel.
Both Brent and WTIs are just below highs last reached in 2018, and are set to record their seventh monthly gain in the past eight months.
A Reuters poll showed that Brent was seen averaging $67.48 a barrel this year and WTI $64.54, both up from May's poll. read more
Saudis Leaving Workforce Push Unemployment to a Five-Year Low - Bloomberg
Saudis Leaving Workforce Push Unemployment to a Five-Year Low - Bloomberg
Unemployment among Saudi Arabia’s citizens fell to its lowest level in nearly five years, but the decline was partly driven by people dropping out of the labor force, unwelcome news for a crown prince who has put job creation for a youthful population at the center of his agenda.
The jobless rate decreased to 11.7% in the first quarter compared to 12.6% in the fourth quarter, continuing a strong downward trend after hitting a record at the height of the pandemic, according to data from the General Authority for Statistics. However, labor force participation for citizens also fell, from 51.2% in the fourth quarter to 49.5% in the first three months of the year -- the sharpest drop since an economic downturn in 2017.
Job creation is a major consideration for Crown Prince Mohammed bin Salman, the country’s de facto leader, as he reshapes an economy dependent on exporting oil and importing foreign labor. The global health emergency exacerbated the scale of the problem, pushing citizen unemployment up to 15.4% during the kingdom’s coronavirus lockdown last year.
Unemployment among Saudi Arabia’s citizens fell to its lowest level in nearly five years, but the decline was partly driven by people dropping out of the labor force, unwelcome news for a crown prince who has put job creation for a youthful population at the center of his agenda.
The jobless rate decreased to 11.7% in the first quarter compared to 12.6% in the fourth quarter, continuing a strong downward trend after hitting a record at the height of the pandemic, according to data from the General Authority for Statistics. However, labor force participation for citizens also fell, from 51.2% in the fourth quarter to 49.5% in the first three months of the year -- the sharpest drop since an economic downturn in 2017.
Job creation is a major consideration for Crown Prince Mohammed bin Salman, the country’s de facto leader, as he reshapes an economy dependent on exporting oil and importing foreign labor. The global health emergency exacerbated the scale of the problem, pushing citizen unemployment up to 15.4% during the kingdom’s coronavirus lockdown last year.
#Dubai's DP World hires banks for sale of flagship free zone stake-sources | Reuters
Dubai's DP World hires banks for sale of flagship free zone stake-sources | Reuters
Dubai's DP World has hired banks to help sell a minority stake in its flagship business park, Jebel Ali Free Zone, which could fetch a few billion dollars, three sources familiar with the deal said.
It hired JPMorgan (JPM.N), Standard Chartered (STAN.L) and First Abu Dhabi Bank (FAB.AD) for the transaction that is likely to draw interest from infrastructure funds, private equity firms and other investors such as pension funds, they said.
The deal may be funded using leverage finance, one of the sources added.
Located adjacent to DP World's flagship Jebel Ali Port in Dubai, Jafza is one of United Arab Emirates' largest specialised business parks, commonly referred to locally as a free trade zone, where full foreign ownership is permitted.
Jebel Ali's free zone hosts more than 8,000 companies now, up from 500 in 1995, according to its website.
Dubai's DP World has hired banks to help sell a minority stake in its flagship business park, Jebel Ali Free Zone, which could fetch a few billion dollars, three sources familiar with the deal said.
It hired JPMorgan (JPM.N), Standard Chartered (STAN.L) and First Abu Dhabi Bank (FAB.AD) for the transaction that is likely to draw interest from infrastructure funds, private equity firms and other investors such as pension funds, they said.
The deal may be funded using leverage finance, one of the sources added.
Located adjacent to DP World's flagship Jebel Ali Port in Dubai, Jafza is one of United Arab Emirates' largest specialised business parks, commonly referred to locally as a free trade zone, where full foreign ownership is permitted.
Jebel Ali's free zone hosts more than 8,000 companies now, up from 500 in 1995, according to its website.
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