Oil settles nearly flat; recession worry vies with higher demand outlook | Reuters
Oil prices were little changed on Monday, settling just slightly higher as worries over a possible recession vied with an outlook for higher fuel demand with the upcoming U.S. summer driving season and Shanghai's plans to reopen after a two-month coronavirus lockdown.
U.S. West Texas Intermediate (WTI) crude settled up 1 cent, or 0.01%, at $110.29 a barrel, while Brent crude futures settled up 87 cents, or 0.7%, to at $113.42.
"There are black clouds gathering around the financial markets here and it has started to impact crude oil," said Bob Yawger, director of energy futures at Mizuho.
"The economic wellbeing of the global economy is questionable at this point," he added.
Monday 23 May 2022
#Saudi Energy Firm Rawabi Seeks $500 Million Funding Ahead of IPO - Bloomberg
Saudi Energy Firm Rawabi Seeks $500 Million Funding Ahead of IPO - Bloomberg
Saudi Arabia’s Rawabi Energy Co., part of Rawabi Holding Co., is looking to raise as much as $500 million before a potential initial public offering later this year that could value the company at about $1 billion, according to people familiar with the matter.
The company, which includes Rawabi’s oil-field services unit, is working with boutique investment bank Evercore on the pre-IPO funding and is in talks with potential backers, the people said, asking not to be identified as the information is private. Rawabi Energy is also in discussions with banks to appoint financial advisers for the share sale, the people said.
Saudi Arabian companies raised almost $9.3 billion from share offerings last year, making Riyadh the most active IPO market in the Middle East and Africa after Israel, according to data compiled by Bloomberg. The country’s main stock index is one of the top five best performing markets in the world this year, buoyed in large part by surging oil prices.
That’s attracting a slew of IPOs to the exchange, with Chief Executive Officer Khalid Al-Hussan saying earlier this year that more than 70 companies have applied to sell shares.
Rawabi Holding Co. and Evercore declined to comment.
Saudi Arabia’s Rawabi Energy Co., part of Rawabi Holding Co., is looking to raise as much as $500 million before a potential initial public offering later this year that could value the company at about $1 billion, according to people familiar with the matter.
The company, which includes Rawabi’s oil-field services unit, is working with boutique investment bank Evercore on the pre-IPO funding and is in talks with potential backers, the people said, asking not to be identified as the information is private. Rawabi Energy is also in discussions with banks to appoint financial advisers for the share sale, the people said.
Saudi Arabian companies raised almost $9.3 billion from share offerings last year, making Riyadh the most active IPO market in the Middle East and Africa after Israel, according to data compiled by Bloomberg. The country’s main stock index is one of the top five best performing markets in the world this year, buoyed in large part by surging oil prices.
That’s attracting a slew of IPOs to the exchange, with Chief Executive Officer Khalid Al-Hussan saying earlier this year that more than 70 companies have applied to sell shares.
Rawabi Holding Co. and Evercore declined to comment.
#Saudi finance minister says no immediate plans to transfer more funds to PIF | Reuters
Saudi finance minister says no immediate plans to transfer more funds to PIF | Reuters
Saudi Arabia's finance minister said on Monday there were no immediate plans to transfer more funds to the Public Investment Fund (PIF), the sovereign wealth fund at the centre of the kingdom's plans to diversify its economy away from oil.
The PIF manages over $600 billion in assets, a figure that has doubled in about two years.
"I think there is no immediate plan to transfer any funds to PIF," said Finance Minister Mohammed al-Jadaan, speaking at the World Economic Forum in Davos, Switzerland.
In 2020, the PIF got a $40 billion injection from the central bank, which Jadaan said at the time was done on an "exceptional basis".
Saudi Arabia's finance minister said on Monday there were no immediate plans to transfer more funds to the Public Investment Fund (PIF), the sovereign wealth fund at the centre of the kingdom's plans to diversify its economy away from oil.
The PIF manages over $600 billion in assets, a figure that has doubled in about two years.
"I think there is no immediate plan to transfer any funds to PIF," said Finance Minister Mohammed al-Jadaan, speaking at the World Economic Forum in Davos, Switzerland.
In 2020, the PIF got a $40 billion injection from the central bank, which Jadaan said at the time was done on an "exceptional basis".
Aramco CEO warns of global oil crunch due to lack of investment | Reuters
Aramco CEO warns of global oil crunch due to lack of investment | Reuters
The world is facing a major oil supply crunch as most companies are afraid to invest in the sector amid green energy pressures, the head of Saudi Aramco told Reuters, adding it cannot expand production capacity any faster than promised.
Amin Nasser, head of the world's largest oil producer, said on Monday he was sticking to the target of expanding capacity to 13 million barrels per day from the current 12 million by 2027, despite calls to do it faster.
"The world is running with less than 2% of spare capacity. Before COVID the aviation industry was consuming 2.5 million bpd more than today. If the aviation industry picks up speed, you are going to have a major problem," Nasser told Reuters on the sidelines of the World Economic Forum in Davos.
"What happened in Russia-Ukraine masked what would have happened. We were going through an energy crisis because of a lack of investment. And it started to bite following the pandemic," he added.
The world is facing a major oil supply crunch as most companies are afraid to invest in the sector amid green energy pressures, the head of Saudi Aramco told Reuters, adding it cannot expand production capacity any faster than promised.
Amin Nasser, head of the world's largest oil producer, said on Monday he was sticking to the target of expanding capacity to 13 million barrels per day from the current 12 million by 2027, despite calls to do it faster.
"The world is running with less than 2% of spare capacity. Before COVID the aviation industry was consuming 2.5 million bpd more than today. If the aviation industry picks up speed, you are going to have a major problem," Nasser told Reuters on the sidelines of the World Economic Forum in Davos.
"What happened in Russia-Ukraine masked what would have happened. We were going through an energy crisis because of a lack of investment. And it started to bite following the pandemic," he added.
#Oman's sovereign wealth fund considers IPO for water company Majis Industrial Services | Reuters
Oman's sovereign wealth fund considers IPO for water company Majis Industrial Services | Reuters
Oman's sovereign wealth fund, the Oman Investment Authority (OIA), is considering a public share-sale for water company Majis Industrial Services, two sources close to the matter said.
The OIA has invited banks to pitch for roles in Majis' initial public offering, said the sources, declining to be named as the matter is not public.
The OIA and Majis did not respond to Reuters' requests for comment.
The OIA, which holds $17 billion worth of assets according to the Sovereign Wealth Fund Institute, was created in 2020 when two of the sultanate's wealth funds – State General Reserve Fund and the Oman Investment Fund – were merged into one entity.
Oman aims to list 35 state-owned enterprises in the next five years and plans to take one or two oil companies public this year, the CEO of the Muscat Stock Exchange told CNBC Arabia in March.
Oman's sovereign wealth fund, the Oman Investment Authority (OIA), is considering a public share-sale for water company Majis Industrial Services, two sources close to the matter said.
The OIA has invited banks to pitch for roles in Majis' initial public offering, said the sources, declining to be named as the matter is not public.
The OIA and Majis did not respond to Reuters' requests for comment.
The OIA, which holds $17 billion worth of assets according to the Sovereign Wealth Fund Institute, was created in 2020 when two of the sultanate's wealth funds – State General Reserve Fund and the Oman Investment Fund – were merged into one entity.
Oman aims to list 35 state-owned enterprises in the next five years and plans to take one or two oil companies public this year, the CEO of the Muscat Stock Exchange told CNBC Arabia in March.
#Israel Is Set for Once-in-a-Decade Rate Hike: Decision Day Guide - Bloomberg
Israel Is Set for Once-in-a-Decade Rate Hike: Decision Day Guide - Bloomberg
Israel embarked on its first cycle of interest-rate hikes in more than a decade, raising borrowing costs more than forecast in response to above-target inflation.
The increase to 0.75% from 0.35% on Monday exceeded the estimates of most analysts surveyed by Bloomberg. In April, the central bank also delivered a bigger-than-expected hike of a quarter percentage point.
The Monetary Committee said in a statement that wages in the business sector were “slightly higher than the path that corresponds to the pre-pandemic trend,” suggesting that rising incomes had factored into its decision-making process. It reiterated that the process of raising rates will be “gradual.”
Israel’s currency appreciated sharply after the decision and traded 0.7% stronger against the dollar as of 4:17 p.m. local time.
Israel embarked on its first cycle of interest-rate hikes in more than a decade, raising borrowing costs more than forecast in response to above-target inflation.
The increase to 0.75% from 0.35% on Monday exceeded the estimates of most analysts surveyed by Bloomberg. In April, the central bank also delivered a bigger-than-expected hike of a quarter percentage point.
The Monetary Committee said in a statement that wages in the business sector were “slightly higher than the path that corresponds to the pre-pandemic trend,” suggesting that rising incomes had factored into its decision-making process. It reiterated that the process of raising rates will be “gradual.”
Israel’s currency appreciated sharply after the decision and traded 0.7% stronger against the dollar as of 4:17 p.m. local time.
Oil firms on tight supply as U.S. driving season looms | Reuters
Oil firms on tight supply as U.S. driving season looms | Reuters
Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown that fuelled worries about a sharp slowdown in growth.
Brent crude futures rose $1.06 or 0.9% to $113.61 a barrel by 1240 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 97 cents, or 0.9%, to $111.25 a barrel, adding to last week's small gains for both contracts.
"Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season," said SPI Asset Management Managing Partner Stephen Innes.
"Refineries are typically in ramp-up mode to feed U.S. drivers' unquenching thirst at the pump."
Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown that fuelled worries about a sharp slowdown in growth.
Brent crude futures rose $1.06 or 0.9% to $113.61 a barrel by 1240 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 97 cents, or 0.9%, to $111.25 a barrel, adding to last week's small gains for both contracts.
"Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season," said SPI Asset Management Managing Partner Stephen Innes.
"Refineries are typically in ramp-up mode to feed U.S. drivers' unquenching thirst at the pump."
Dubai leads decline in most Gulf markets; Qatar gains | Reuters
Dubai leads decline in most Gulf markets; Qatar gains | Reuters
Most stock markets in the Gulf ended lower on Monday, as investors feared that inflation and rising interest rates would hamper the global economic outlook.
Saudi Arabia's benchmark index (.TASI) dropped 0.8%, hit by a 2.3% fall in Al Rajhi Bank (1120.SE) and a 3.4% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).
On the other hand, investment firm Kingdom Holding (4280.SE) surged 9.5%, extending gains from the previous session.
Saudi billionaire Prince Alwaleed bin Talal signed an agreement with the kingdom's powerful sovereign wealth fund to sell 16.87% of his company Kingdom Holding (4280.SE) to the fund.
The shares of Kingdom Holding, which closed at its lowest level on Thursday, rose 9.9% to 9.99 riyals on Sunday after the sale was announced.
In Abu Dhabi, the index (.FTFADGI) retreated 2.2%, weighed down by a 3.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, finished 2.5% lower, underperforming the region, dragged down by a 4.9% slide in Emirates NBD Bank (ENBD.DU).
Bucking the trend, the Qatari index (.QSI) advanced 1.4%, led by a 3.5% rise in Qatar Islamic Bank (QISB.QA).
The Qatari market inched higher thanks to stronger natural gas prices, said Wael Makarem, senior market strategist at Exness.
"The market is also benefiting from Europe's shift away from Russia as well as the declining geopolitical tensions in the Middle East as talks with Iran continue to develop."
The Emir of Qatar Tamim bin Hamad al-Thani expressed optimism on Friday that an agreement between the United States and Iran could be achieved, voicing readiness to help in the matter. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.5%, helped by a 1.1% gain in top lender Commercial International Bank (COMI.CA).
Most stock markets in the Gulf ended lower on Monday, as investors feared that inflation and rising interest rates would hamper the global economic outlook.
Saudi Arabia's benchmark index (.TASI) dropped 0.8%, hit by a 2.3% fall in Al Rajhi Bank (1120.SE) and a 3.4% decline in petrochemical maker Saudi Basic Industries Corp (2010.SE).
On the other hand, investment firm Kingdom Holding (4280.SE) surged 9.5%, extending gains from the previous session.
Saudi billionaire Prince Alwaleed bin Talal signed an agreement with the kingdom's powerful sovereign wealth fund to sell 16.87% of his company Kingdom Holding (4280.SE) to the fund.
The shares of Kingdom Holding, which closed at its lowest level on Thursday, rose 9.9% to 9.99 riyals on Sunday after the sale was announced.
In Abu Dhabi, the index (.FTFADGI) retreated 2.2%, weighed down by a 3.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, finished 2.5% lower, underperforming the region, dragged down by a 4.9% slide in Emirates NBD Bank (ENBD.DU).
Bucking the trend, the Qatari index (.QSI) advanced 1.4%, led by a 3.5% rise in Qatar Islamic Bank (QISB.QA).
The Qatari market inched higher thanks to stronger natural gas prices, said Wael Makarem, senior market strategist at Exness.
"The market is also benefiting from Europe's shift away from Russia as well as the declining geopolitical tensions in the Middle East as talks with Iran continue to develop."
The Emir of Qatar Tamim bin Hamad al-Thani expressed optimism on Friday that an agreement between the United States and Iran could be achieved, voicing readiness to help in the matter. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.5%, helped by a 1.1% gain in top lender Commercial International Bank (COMI.CA).
#Kuwait state-backed aircraft lessor Alafco explores sale - sources | Reuters
Kuwait state-backed aircraft lessor Alafco explores sale - sources | Reuters
Kuwait-headquartered aircraft leasing firm Alafco is exploring a sale and has held talks with private equity firms and other aircraft lessors, sources familiar with the talks said.
Alafco, whose shareholders include the Kuwaiti government, has a fleet of 77 wide- and narrow-body Airbus (AIR.PA) and Boeing (BA.N) aircraft operated by airlines and another 68 on order.
Alafco and major shareholder Kuwait Finance House did not respond to emailed requests for comment.
The potential sale comes as the lessor reported a 79% increase in half-year losses to 4.5 million dinar ($14.71 million), which it blamed on impairment charges.
Over the same period, Alafco's leasing revenue fell 2% to 51 million dinar ($166.75 million).
Kuwait-headquartered aircraft leasing firm Alafco is exploring a sale and has held talks with private equity firms and other aircraft lessors, sources familiar with the talks said.
Alafco, whose shareholders include the Kuwaiti government, has a fleet of 77 wide- and narrow-body Airbus (AIR.PA) and Boeing (BA.N) aircraft operated by airlines and another 68 on order.
Alafco and major shareholder Kuwait Finance House did not respond to emailed requests for comment.
The potential sale comes as the lessor reported a 79% increase in half-year losses to 4.5 million dinar ($14.71 million), which it blamed on impairment charges.
Over the same period, Alafco's leasing revenue fell 2% to 51 million dinar ($166.75 million).
#SaudiArabia to Use Windfall From Oil Prices to Boost Private Sector - Bloomberg
Saudi Arabia to Use Windfall From Oil Prices to Boost Private Sector - Bloomberg
Saudi Arabia will use this year’s oil windfall to accelerate the economy’s diversification from fossil fuels, according to a minister.
The Saudi government will focus on initiatives to grow the non-oil economy in 2023 but won’t boost fiscal spending, Faisal Alibrahim, minister of economy and planning, said in an interview at the Davos conference in Switzerland. The kingdom’s in discussions with companies from all over the world to get them to move some of their operations to the country, he said.
Saudi Arabia will be the fastest-growing Group of 20 economy this year after India, according to Bloomberg’s surveys of analysts, with oil having climbed almost 50% since the end of 2021 to $110 a barrel. Gross domestic product will surpass $1 trillion for the first time, the International Monetary Fund forecasts.
Saudi Arabia’s posted a $15.3 billion budget surplus in the first quarter as officials kept spending restrained despite surging income from exports of crude and refined fuel. The kingdom expects a full-year surplus of $24 billion.
Saudi Arabia will use this year’s oil windfall to accelerate the economy’s diversification from fossil fuels, according to a minister.
The Saudi government will focus on initiatives to grow the non-oil economy in 2023 but won’t boost fiscal spending, Faisal Alibrahim, minister of economy and planning, said in an interview at the Davos conference in Switzerland. The kingdom’s in discussions with companies from all over the world to get them to move some of their operations to the country, he said.
Saudi Arabia will be the fastest-growing Group of 20 economy this year after India, according to Bloomberg’s surveys of analysts, with oil having climbed almost 50% since the end of 2021 to $110 a barrel. Gross domestic product will surpass $1 trillion for the first time, the International Monetary Fund forecasts.
Saudi Arabia’s posted a $15.3 billion budget surplus in the first quarter as officials kept spending restrained despite surging income from exports of crude and refined fuel. The kingdom expects a full-year surplus of $24 billion.
Watch Taqi: IPOs Positive for Capital Markets - Bloomberg video
Watch Taqi: IPOs Positive for Capital Markets - Bloomberg
Ali Taqi, Head of Strategic Equities & Client Solutions at Rasmala Investment Bank discusses the latest IPO moves in the MENA region, the PIF acquiring a $1.5 billion stake in Prince Alwaleed's Kingdom Holding and why he is increasing his exposure to Saudi and UAE banks. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#Dubai engineering firm Drake & Scull Int. awaits final court approval on restructuring plan | Property – Gulf News
Dubai engineering firm Drake & Scull Int. awaits final court approval on restructuring plan | Property – Gulf News
The Dubai engineering firm Drake & Scull International is still awaiting court approval to go ahead with its restructuring plan. The concerned court had on April 20 appointed an expert to decide whether Drake & Scull has complied with the restructuring requirements.
The accumulated losses now stand at Dh4.92 billion.
“Once the Court process is successfully completed, it will then allow the Company to issue the mandatory convertible sukuk, complete the rights Issue to existing shareholders and resume the trading of shares on the Dubai Financial Market,” said Shafiq Abdelhamid, Chairman. “We are grateful for the patience of our shareholders as we seek to restructure the company, thereby protecting as far as possible their investments and the livelihoods of many hundreds of families.”
One major hurdle was cleared by the company when its creditors gave their approval to the turnaround and how it was sought to be achieved. The company slipped into a full-blown crisis after recording a series of devastating losses, which was kept under wraps by the previous management.
Back into losses
For the first three months of 2022, Drake & Scull had a net loss of Dh52 million against a profit of Dh115 million a year ago. This stemmed from liquidating bank guarantees and interest charges, ‘whereby these expenses will be reversed upon successful completion of the restructuring’.
Revenues too were down, at Dh24 million from Dh46 million. Loss from continued operations came to Dh53 million from a profit of Dh116 million.
The Dubai engineering firm Drake & Scull International is still awaiting court approval to go ahead with its restructuring plan. The concerned court had on April 20 appointed an expert to decide whether Drake & Scull has complied with the restructuring requirements.
The accumulated losses now stand at Dh4.92 billion.
“Once the Court process is successfully completed, it will then allow the Company to issue the mandatory convertible sukuk, complete the rights Issue to existing shareholders and resume the trading of shares on the Dubai Financial Market,” said Shafiq Abdelhamid, Chairman. “We are grateful for the patience of our shareholders as we seek to restructure the company, thereby protecting as far as possible their investments and the livelihoods of many hundreds of families.”
One major hurdle was cleared by the company when its creditors gave their approval to the turnaround and how it was sought to be achieved. The company slipped into a full-blown crisis after recording a series of devastating losses, which was kept under wraps by the previous management.
Back into losses
For the first three months of 2022, Drake & Scull had a net loss of Dh52 million against a profit of Dh115 million a year ago. This stemmed from liquidating bank guarantees and interest charges, ‘whereby these expenses will be reversed upon successful completion of the restructuring’.
Revenues too were down, at Dh24 million from Dh46 million. Loss from continued operations came to Dh53 million from a profit of Dh116 million.
#Israel's Bank Hapoalim looks to resume dividends in second quarter | Reuters
Israel's Bank Hapoalim looks to resume dividends in second quarter | Reuters
Bank Hapoalim (POLI.TA) reported an estimate-beating quarterly profit on Monday, helped by a spike in inflation that boosted financing income, and said it hoped to resume regular dividend payouts from the second quarter.
Amid further unwinding of pandemic loan default provisions, Hapoalim, one of Israel's two largest lenders, earned 1.654 billion shekels ($494 million) in the first quarter, compared with 1.354 billion shekels a year earlier and a forecast of 1.1 billion shekels in a Reuters poll of analysts.
Hapoalim opted against a dividend distribution for a second quarter, citing the need for caution in the current economic environment and a possible global economic slowdown.
"The Bank aspires to return to a trajectory of ongoing dividend distribution soon ... potentially ... in the second quarter of 2022 and onward," it said.
Hapoalim pointed to a Tier 1 capital ratio of 11.17% at the end of March, up from 10.96% at the end of 2021, as proof of its solid financial footing along with a "resilient" credit portfolio with low loan defaults.
Bank Hapoalim (POLI.TA) reported an estimate-beating quarterly profit on Monday, helped by a spike in inflation that boosted financing income, and said it hoped to resume regular dividend payouts from the second quarter.
Amid further unwinding of pandemic loan default provisions, Hapoalim, one of Israel's two largest lenders, earned 1.654 billion shekels ($494 million) in the first quarter, compared with 1.354 billion shekels a year earlier and a forecast of 1.1 billion shekels in a Reuters poll of analysts.
Hapoalim opted against a dividend distribution for a second quarter, citing the need for caution in the current economic environment and a possible global economic slowdown.
"The Bank aspires to return to a trajectory of ongoing dividend distribution soon ... potentially ... in the second quarter of 2022 and onward," it said.
Hapoalim pointed to a Tier 1 capital ratio of 11.17% at the end of March, up from 10.96% at the end of 2021, as proof of its solid financial footing along with a "resilient" credit portfolio with low loan defaults.
#Iran and #Oman agree to jointly develop shared oilfield - Fars news | Reuters
Iran and Oman agree to jointly develop shared oilfield - Fars news | Reuters
Iran and Oman have agreed to form a committee to jointly develop the Hengam oilfield, which straddles both countries' sea border, Iran's semi-official Fars news agency reported its oil minister Javad Owji as saying on Monday.
In 2005, both countries signed a memorandum of understanding to jointly develop the Hengam oil field but the agreement did not materialise and Iran decided to develop the field independently in 2012.
"As the first basis of my talks with Omani Oil Minister Mohammed bin Hamad Al-Rumhi, it was agreed to form a joint technical committee to develop the next phases of the Hengam oil field in a seamless manner between Iran and Oman," Owji said.
"Joint exploitation, in contrast to competitive exploitation, will be mutually beneficial to both countries as this method leads to less damage to the reservoir and allows for more extraction," the oil minister added.
Last week, Iran's state news agency IRNA reported that Owji had agreed to revive a long-stalled project to lay an undersea pipeline to carry gas to Oman. read more
Iran and Oman have agreed to form a committee to jointly develop the Hengam oilfield, which straddles both countries' sea border, Iran's semi-official Fars news agency reported its oil minister Javad Owji as saying on Monday.
In 2005, both countries signed a memorandum of understanding to jointly develop the Hengam oil field but the agreement did not materialise and Iran decided to develop the field independently in 2012.
"As the first basis of my talks with Omani Oil Minister Mohammed bin Hamad Al-Rumhi, it was agreed to form a joint technical committee to develop the next phases of the Hengam oil field in a seamless manner between Iran and Oman," Owji said.
"Joint exploitation, in contrast to competitive exploitation, will be mutually beneficial to both countries as this method leads to less damage to the reservoir and allows for more extraction," the oil minister added.
Last week, Iran's state news agency IRNA reported that Owji had agreed to revive a long-stalled project to lay an undersea pipeline to carry gas to Oman. read more
#UAE Chemicals Firm Borouge Seeks to Raise $2 Billion From IPO - Bloomberg
UAE Chemicals Firm Borouge Seeks to Raise $2 Billion From IPO - Bloomberg
The United Arab Emirates’ biggest oil company and Borealis AG are seeking to raise $2 billion from an initial public offering of their chemicals joint venture in Abu Dhabi, set to be the biggest ever listing in the emirate.
Borouge’s IPO offer price has been set at 2.45 dirhams per share, Abu Dhabi National Oil Co. said in a statement on Monday. Adnoc and Vienna-based Borealis are selling 3 billion shares in Borouge, equating to 10% of the company. That implies an equity valuation of just over $20 billion for the maker of specialty plastics for manufacturing and consumer goods.
Seven cornerstone investors have agreed to subscribe for $570 million worth of shares in the IPO. The family of Indian billionaire Gautam Adani, Asia’s richest man, has committed $75 million, Abu Dhabi wealth fund ADQ will buy shares worth $120 million and Alpha Dhabi Holding has committed $100 million.
The deal is the latest in a string of blockbuster listings from the UAE and neighboring Saudi Arabia, even as volatility rocks markets elsewhere. The region’s IPO boom has gathered steam as oil and gas prices have surged in the wake of Russia’s invasion of Ukraine. The UAE is the third-biggest oil producer in OPEC.
At $2 billion Borouge is set to eclipse Adnoc Drilling Co.’s $1.1 billion IPO last year as the largest ever in Abu Dhabi, data compiled by Bloomberg show. Its order books were covered within a few hours, terms seen by Bloomberg show.
The United Arab Emirates’ biggest oil company and Borealis AG are seeking to raise $2 billion from an initial public offering of their chemicals joint venture in Abu Dhabi, set to be the biggest ever listing in the emirate.
Borouge’s IPO offer price has been set at 2.45 dirhams per share, Abu Dhabi National Oil Co. said in a statement on Monday. Adnoc and Vienna-based Borealis are selling 3 billion shares in Borouge, equating to 10% of the company. That implies an equity valuation of just over $20 billion for the maker of specialty plastics for manufacturing and consumer goods.
Seven cornerstone investors have agreed to subscribe for $570 million worth of shares in the IPO. The family of Indian billionaire Gautam Adani, Asia’s richest man, has committed $75 million, Abu Dhabi wealth fund ADQ will buy shares worth $120 million and Alpha Dhabi Holding has committed $100 million.
The deal is the latest in a string of blockbuster listings from the UAE and neighboring Saudi Arabia, even as volatility rocks markets elsewhere. The region’s IPO boom has gathered steam as oil and gas prices have surged in the wake of Russia’s invasion of Ukraine. The UAE is the third-biggest oil producer in OPEC.
At $2 billion Borouge is set to eclipse Adnoc Drilling Co.’s $1.1 billion IPO last year as the largest ever in Abu Dhabi, data compiled by Bloomberg show. Its order books were covered within a few hours, terms seen by Bloomberg show.
Oil firms on tight supply as U.S. driving season looms | Reuters
Oil firms on tight supply as U.S. driving season looms | Reuters
Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fuelled worries about a sharp slowdown in growth.
Brent crude futures rose 97 cents to $113.52 a barrel at 0651 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 80 cents, or 0.73%, to $111.08 a barrel, adding to last week's small gains for both contracts.
"Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season," said SPI Asset Management managing partner Stephen Innes.
"Refineries are typically in ramp-up mode to feed U.S. drivers' unquenching thirst at the pump."
Oil prices gained on Monday with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fuelled worries about a sharp slowdown in growth.
Brent crude futures rose 97 cents to $113.52 a barrel at 0651 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 80 cents, or 0.73%, to $111.08 a barrel, adding to last week's small gains for both contracts.
"Oil prices are supported as gasoline markets remain tight amid solid demand heading into the peak U.S. driving season," said SPI Asset Management managing partner Stephen Innes.
"Refineries are typically in ramp-up mode to feed U.S. drivers' unquenching thirst at the pump."
Major Gulf shares range-bound; #Dubai underperforms | Reuters
Major Gulf shares range-bound; Dubai underperforms | Reuters
Major Gulf stock markets were range-bound in early trade on Monday, as investors weighed rising oil prices and a slowdown in economic growth.
Shares in the region lost ground in recent weeks amid anxiety about fast-rising inflation that will drive a sharp rise in interest rates and put global economic growth at risk.
In Abu Dhabi, the index (.FTFADGI) dropped 1.7%, hit by a 1.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, retreated 2.1%, dragged down by 3.4% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 3.2% decline in Emirates Integrated Telecommunications (DU.DU).
Saudi Arabia's benchmark index (.TASI) gained 0.5%, led by a 0.8% rise in in Al Rajhi Bank (1120.SE) and a 1.6% increase in the country's largest lender Saudi National Bank (1180.SE).
Elsewhere, Kingdom Holding (4280.SE) surged 9.9%, extending gains from the previous session.
Saudi billionaire Prince Alwaleed bin Talal signed an agreement with the kingdom's powerful sovereign wealth fund to sell 16.87% of his investment firm Kingdom Holding to the fund.
The share price for the agreement was where the stock closed on Thursday, its lowest level in a year. It rallied 9.9% to 9.99 riyals on Sunday.
The Qatari index (.QSI) advanced 1%, with Qatar Islamic Bank (QISB.QA) putting on 2.1%, while Masraf Al Rayan (MARK.QA) climbed 1.9%.
Oil prices, a key catalyst for the Gulf's financial markets, gained with U.S. fuel demand, tight supply and a slightly weaker dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fuelled worries about a sharp slowdown in growth.
Major Gulf stock markets were range-bound in early trade on Monday, as investors weighed rising oil prices and a slowdown in economic growth.
Shares in the region lost ground in recent weeks amid anxiety about fast-rising inflation that will drive a sharp rise in interest rates and put global economic growth at risk.
In Abu Dhabi, the index (.FTFADGI) dropped 1.7%, hit by a 1.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, retreated 2.1%, dragged down by 3.4% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 3.2% decline in Emirates Integrated Telecommunications (DU.DU).
Saudi Arabia's benchmark index (.TASI) gained 0.5%, led by a 0.8% rise in in Al Rajhi Bank (1120.SE) and a 1.6% increase in the country's largest lender Saudi National Bank (1180.SE).
Elsewhere, Kingdom Holding (4280.SE) surged 9.9%, extending gains from the previous session.
Saudi billionaire Prince Alwaleed bin Talal signed an agreement with the kingdom's powerful sovereign wealth fund to sell 16.87% of his investment firm Kingdom Holding to the fund.
The share price for the agreement was where the stock closed on Thursday, its lowest level in a year. It rallied 9.9% to 9.99 riyals on Sunday.
The Qatari index (.QSI) advanced 1%, with Qatar Islamic Bank (QISB.QA) putting on 2.1%, while Masraf Al Rayan (MARK.QA) climbed 1.9%.
Oil prices, a key catalyst for the Gulf's financial markets, gained with U.S. fuel demand, tight supply and a slightly weaker dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fuelled worries about a sharp slowdown in growth.
#SaudiArabia signals support for #Russia’s role in Opec+ as sanctions pressure mounts | Financial Times
Saudi Arabia signals support for Russia’s role in Opec+ as sanctions pressure mounts | Financial Times
Saudi Arabia has signalled it will stand by Russia as a member of the Opec+ group of oil producers despite tightening western sanctions on Moscow and a potential EU ban on Russian oil imports.
Prince Abdulaziz bin Salman, the energy minister, told the Financial Times that Riyadh was hoping “to work out an agreement with Opec+ . . . which includes Russia”, insisting the “world should appreciate the value” of the alliance of producers.
A new production deal is on the agenda as Opec+ output quotas put in place in April 2020 are set to expire in three months while energy consumers grapple with oil prices at their highest levels in a decade.
Prince Abdulaziz’s comments are an important sign of support for Russia from a traditional US ally as the west tries to isolate the country and its oil production falls, raising questions about its place in the Opec+ group.