UAE minister pledges commitment to oil production ceiling through end of pact | Reuters
The United Arab Emirates' oil production is near to maximum capacity based on its current OPEC+ production baseline, which is 3.168 million barrels per day, Energy Minister Suhail al-Mazrouei told state news agency WAM on Monday.
"In light of recent media reports, I would like to clarify that the UAE is producing near to our maximum production capacity based on its current OPEC+ production baseline (3.168 mbopd) which UAE is committed by until the end of the agreement," he said.
Monday 27 June 2022
Oil rises $2/bbl after G7 vows new Russian sanctions | Reuters
Oil rises $2/bbl after G7 vows new Russian sanctions | Reuters
Oil rose $2 a barrel on Monday on the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin's war chest while actually lowering energy prices.
Brent crude futures settled $1.97, or 1.7% higher, at $115.09 a barrel, while U.S. West Texas Intermediate crude closed up $1.95, or 1.8%, at $109.57 a barrel.
The group of wealthy nations vowed to stand with Ukraine "for as long as it takes", proposing to cap the price of Russian oil as part of new sanctions to hit Moscow's finances. read more
"I think if they were to implement a price cap on sale and purchase of Russian oil, it's difficult for me to imagine how this is going to be implemented, especially when China and India have become Russia's biggest customers," said Houston-based oil consultant Andrew Lipow.
Oil rose $2 a barrel on Monday on the prospect of even tighter supplies loomed over the market as the Group of Seven nations promised to tighten the squeeze on Russian President Vladimir Putin's war chest while actually lowering energy prices.
Brent crude futures settled $1.97, or 1.7% higher, at $115.09 a barrel, while U.S. West Texas Intermediate crude closed up $1.95, or 1.8%, at $109.57 a barrel.
The group of wealthy nations vowed to stand with Ukraine "for as long as it takes", proposing to cap the price of Russian oil as part of new sanctions to hit Moscow's finances. read more
"I think if they were to implement a price cap on sale and purchase of Russian oil, it's difficult for me to imagine how this is going to be implemented, especially when China and India have become Russia's biggest customers," said Houston-based oil consultant Andrew Lipow.
BlueCrest Hires Ex-Citadel Trader Wheeler for #Dubai Expansion - Bloomberg
BlueCrest Hires Ex-Citadel Trader Wheeler for Dubai Expansion - Bloomberg
Billionaire Michael Platt’s private investment firm is expanding operations to Dubai, with former Citadel money manager Chris Wheeler among those hired.
BlueCrest Capital Management is expected to start with 10 people, including at least three portfolio managers, according to people with knowledge of the matter. The firm plans to open an office in the Dubai financial district and trade imminently, said the people, who asked not to be identified because the details are private.
Wheeler and a spokesman for BlueCrest declined to comment.
The firm, which runs Platt’s wealth and that of his partners, joins peers such as Schonfeld Strategic Advisors and Brevan Howard Asset Management in expanding to Dubai as the city emerges as one of the newest hubs for hedge fund talent. Such firms rely on a group of traders running different strategies across multiple investment teams.
Billionaire Michael Platt’s private investment firm is expanding operations to Dubai, with former Citadel money manager Chris Wheeler among those hired.
BlueCrest Capital Management is expected to start with 10 people, including at least three portfolio managers, according to people with knowledge of the matter. The firm plans to open an office in the Dubai financial district and trade imminently, said the people, who asked not to be identified because the details are private.
Wheeler and a spokesman for BlueCrest declined to comment.
The firm, which runs Platt’s wealth and that of his partners, joins peers such as Schonfeld Strategic Advisors and Brevan Howard Asset Management in expanding to Dubai as the city emerges as one of the newest hubs for hedge fund talent. Such firms rely on a group of traders running different strategies across multiple investment teams.
#Qatar pledges $100 mln to establish platform to recover distressed assets | Reuters
Qatar pledges $100 mln to establish platform to recover distressed assets | Reuters
The Qatar Financial Center (QFC) said on Monday that it has pledged $100 million to fund a new platform aimed at recovering distressed assets.
Atlas Merchant Capital, the private equity firm co-founded by former Barclays Plc chief Bob Diamond, will advise the new platform on strategy and the new vehicle will seek to coordinate with an investment firm focused on distressed assets, the QFC statement said.
However, QFC called the move a “non-binding letter of intent” intended to motivate institutional investors to fund an additional $1.5 billion.
Atlas Merchant Capital did not respond to a request for comment.
The new vehicle "will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets, QFC said, adding it "believes recent global crises have created an opportunity for private investment in the sector."
The new platform, which will open a regional hub in Doha, targets a first close in 2022 and a final close in 2023, according to the QFC statement.
The QFC licenses foreign companies to exempt them from the Gulf state’s local ownership laws and to allow for full repatriation of profits.
The Qatar Financial Center (QFC) said on Monday that it has pledged $100 million to fund a new platform aimed at recovering distressed assets.
Atlas Merchant Capital, the private equity firm co-founded by former Barclays Plc chief Bob Diamond, will advise the new platform on strategy and the new vehicle will seek to coordinate with an investment firm focused on distressed assets, the QFC statement said.
However, QFC called the move a “non-binding letter of intent” intended to motivate institutional investors to fund an additional $1.5 billion.
Atlas Merchant Capital did not respond to a request for comment.
The new vehicle "will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets, QFC said, adding it "believes recent global crises have created an opportunity for private investment in the sector."
The new platform, which will open a regional hub in Doha, targets a first close in 2022 and a final close in 2023, according to the QFC statement.
The QFC licenses foreign companies to exempt them from the Gulf state’s local ownership laws and to allow for full repatriation of profits.
Oil prices rise amid G7 talks on new Russian sanctions | Reuters
Oil prices rise amid G7 talks on new Russian sanctions | Reuters
Oil prices traded higher on Monday in a volatile session as investors waited for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
Brent crude futures rose $2.56, or 2.3%, to $115.68 a barrel by 1:56 p.m. ET (1756 GMT), while U.S. West Texas Intermediate crude was up $2.51, or 2.3%, at $110.14 a barrel.
The prospect of even tighter supplies loomed over the market as western governments sought ways to limit Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more oil exports from the OPEC member. [ read more ]
Oil prices traded higher on Monday in a volatile session as investors waited for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
Brent crude futures rose $2.56, or 2.3%, to $115.68 a barrel by 1:56 p.m. ET (1756 GMT), while U.S. West Texas Intermediate crude was up $2.51, or 2.3%, at $110.14 a barrel.
The prospect of even tighter supplies loomed over the market as western governments sought ways to limit Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more oil exports from the OPEC member. [ read more ]
#SaudiArabia Banks Facing $43 Billion Tab Get a Rates Breather for Now - Bloomberg video
Saudi Arabia Banks Facing $43 Billion Tab Get a Rates Breather for Now - Bloomberg
Saudi Arabia’s cash injections into banks brought immediate liquidity relief for an industry still in the grip of a funding challenge.
The interest rate banks charge one another for loans had its biggest two-decline since the height of the global pandemic in March 2020 after policy makers acted to address the worst funding crunch in over a decade. The Saudi Central Bank, known as SAMA, in recent days placed about $13 billion as time deposits with commercial lenders, according to people familiar with the matter.
But under the assumption that Saudi banks will expand credit by nearly 14% this year while deposits grow far slower, Bloomberg Intelligence estimates lenders will still need to raise about 160 billion riyals ($43 billion) to finance bigger loan books.
“Banks still must diversify funding,” said Edmond Christou, senior analyst at Bloomberg Intelligence. “SAMA’s aid just delays a fix.”
The first signs of a turnaround have already emerged, however, with liquidity conditions loosening sharply since Friday’s close. The three-month Saudi Interbank Offered Rate, or Saibor, slipped to 2.9281% on Monday, a decline of nearly 37 basis points in two days.
The interest rate banks charge one another for loans had its biggest two-decline since the height of the global pandemic in March 2020 after policy makers acted to address the worst funding crunch in over a decade. The Saudi Central Bank, known as SAMA, in recent days placed about $13 billion as time deposits with commercial lenders, according to people familiar with the matter.
But under the assumption that Saudi banks will expand credit by nearly 14% this year while deposits grow far slower, Bloomberg Intelligence estimates lenders will still need to raise about 160 billion riyals ($43 billion) to finance bigger loan books.
“Banks still must diversify funding,” said Edmond Christou, senior analyst at Bloomberg Intelligence. “SAMA’s aid just delays a fix.”
The first signs of a turnaround have already emerged, however, with liquidity conditions loosening sharply since Friday’s close. The three-month Saudi Interbank Offered Rate, or Saibor, slipped to 2.9281% on Monday, a decline of nearly 37 basis points in two days.
Most Gulf indexes in black as inflation fears ease | Reuters
Most Gulf indexes in black as inflation fears ease | Reuters
Most Gulf markets extended gains on Monday, tracking global shares as a drop in commodity prices allayed fears of accelerating inflation and aggressive interest rate hikes.
Dubai's main share index (.DFMGI) gained 0.5%, led by a 2.7% rise in top lender Emirates NBD (ENBD.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($463 million) from investors via its initial public offering (IPO). read more
The company, owned by the investment vehicle of Dubai's ruler, had announced its plan on June 8 to sell a 12.5% stake by offering 625 million ordinary shares in its IPO.
Dubai stocks moved higher, supported by a rebound in international markets and the successful IPO of Tecom, said Wael Makarem, Senior Market Strategist – MENA at Exness.
"The offering has shown investors' interest in Dubai but the market remains exposed to price corrections in the currently challenging global conditions."
In Abu Dhabi, stocks (.FTFADGI) added 0.3%, supported by a 3.6% jump in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) as its unit signed a memorandum of understanding with a Libyan firm to develop a strategic long-term partnership and collaborate in renewable energy sector in Libya.
The Qatari index (.QSI) added 0.2%, with Qatar Gas Transport (QGTS.QA) rising more than 3% after its cabinet approved increasing the percentage of non-Qatari investors' ownership up to 100% of the co's capital.
The benchmark index (.TASI) in Saudi Arabia, however, fell 0.7% in a choppy trade.
Oil prices, a key catalyst for the Gulf's financial markets, were volatile following last week's rout, as the market grappled with concerns over an economic slowdown versus worries about lost Russian supply amid sanctions over the Ukraine conflict.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 2%, with most of stocks in the negative territory including Fawry for Banking Technology and Electronic Payment (FWRY.CA), which lost about 10%.
According to Makarem, Egyptian stocks continued to fall under the weight of the selling pressure as international investors accelerated their retreat from the market.
"The Egyptian market remained exposed to the development in the aftermath of the G7 nations' meeting concerning Ukraine."
Most Gulf markets extended gains on Monday, tracking global shares as a drop in commodity prices allayed fears of accelerating inflation and aggressive interest rate hikes.
Dubai's main share index (.DFMGI) gained 0.5%, led by a 2.7% rise in top lender Emirates NBD (ENBD.DU).
Dubai business park operator TECOM Group said on Monday it had raised 1.7 billion dirhams ($463 million) from investors via its initial public offering (IPO). read more
The company, owned by the investment vehicle of Dubai's ruler, had announced its plan on June 8 to sell a 12.5% stake by offering 625 million ordinary shares in its IPO.
Dubai stocks moved higher, supported by a rebound in international markets and the successful IPO of Tecom, said Wael Makarem, Senior Market Strategist – MENA at Exness.
"The offering has shown investors' interest in Dubai but the market remains exposed to price corrections in the currently challenging global conditions."
In Abu Dhabi, stocks (.FTFADGI) added 0.3%, supported by a 3.6% jump in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) as its unit signed a memorandum of understanding with a Libyan firm to develop a strategic long-term partnership and collaborate in renewable energy sector in Libya.
The Qatari index (.QSI) added 0.2%, with Qatar Gas Transport (QGTS.QA) rising more than 3% after its cabinet approved increasing the percentage of non-Qatari investors' ownership up to 100% of the co's capital.
The benchmark index (.TASI) in Saudi Arabia, however, fell 0.7% in a choppy trade.
Oil prices, a key catalyst for the Gulf's financial markets, were volatile following last week's rout, as the market grappled with concerns over an economic slowdown versus worries about lost Russian supply amid sanctions over the Ukraine conflict.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 2%, with most of stocks in the negative territory including Fawry for Banking Technology and Electronic Payment (FWRY.CA), which lost about 10%.
According to Makarem, Egyptian stocks continued to fall under the weight of the selling pressure as international investors accelerated their retreat from the market.
"The Egyptian market remained exposed to the development in the aftermath of the G7 nations' meeting concerning Ukraine."
Biden’s Reversal on #Saudi, #UAE Is Bad Strategy and Won't Lower Gas Prices - Bloomberg
Biden’s Reversal on Saudis, UAE Is Bad Strategy and Won't Lower Gas Prices - Bloomberg
After several months of will-he-won’t-he speculation, the White House confirmed that President Joe Biden’s trip to the Middle East next month will include a stop in Saudi Arabia. There, he will meet with Mohammed bin Salman, ending the crown prince’s diplomatic isolation over his involvement in the murder of the journalist Jamal Khashoggi. The decision is a staggering about-face from Biden, who during his presidential campaign vowed to make Saudi Arabia a “pariah” state.
This isn’t the only apparent change in the Biden administration’s approach toward the Gulf. There are widespread reports that it is on the verge of signing a substantive new security pact with the United Arab Emirates. The deal is rumored to include regional economic and security cooperation, as well as the potential for a concrete U.S. security guarantee to Abu Dhabi.
All this has met with a wave of praise in Washington, with many of those who normally argue that realpolitik is immoral suddenly discovering the merits of realism when it comes to the U.S.-Saudi relationship.
Richard Haass, president of the Council on Foreign Relations, declared that “a pure, values-centered approach to Saudi Arabia … is unsustainable.” Andrew Exum, a defense official in President Barack Obama’s administration, lauded the president for “sacrificing his values today in the interests of something we haven’t seen much of in the past two decades: realism.”
After several months of will-he-won’t-he speculation, the White House confirmed that President Joe Biden’s trip to the Middle East next month will include a stop in Saudi Arabia. There, he will meet with Mohammed bin Salman, ending the crown prince’s diplomatic isolation over his involvement in the murder of the journalist Jamal Khashoggi. The decision is a staggering about-face from Biden, who during his presidential campaign vowed to make Saudi Arabia a “pariah” state.
This isn’t the only apparent change in the Biden administration’s approach toward the Gulf. There are widespread reports that it is on the verge of signing a substantive new security pact with the United Arab Emirates. The deal is rumored to include regional economic and security cooperation, as well as the potential for a concrete U.S. security guarantee to Abu Dhabi.
All this has met with a wave of praise in Washington, with many of those who normally argue that realpolitik is immoral suddenly discovering the merits of realism when it comes to the U.S.-Saudi relationship.
Richard Haass, president of the Council on Foreign Relations, declared that “a pure, values-centered approach to Saudi Arabia … is unsustainable.” Andrew Exum, a defense official in President Barack Obama’s administration, lauded the president for “sacrificing his values today in the interests of something we haven’t seen much of in the past two decades: realism.”
Persian Gulf Gets First ETFs Tracking US Stocks From Chimera - Bloomberg
Persian Gulf Gets First ETFs Tracking US Stocks From Chimera - Bloomberg
Two exchange-traded funds tracking US equities will be a first for the Persian Gulf’s growing ETF industry as Abu Dhabi’s Chimera Capital LLC expands its products.
The company will list Chimera S&P US Shariah Value ETF, a vehicle that will track the performance of the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index. The gauge includes stocks such as Johnson & Johnson, Procter & Gamble Co., and Exxon Mobil Corp.
Chimera will also launch Chimera S&P US Shariah Growth ETF, which will track the performance of the S&P 500 U.S. Shariah Top 30 35/20 Capped Index. This gauge tracks the performance of thirty of the biggest and most liquid Shariah-compliant constituents of the S&P 500, including companies such as Apple Inc., Tesla Inc., and Amazon.com Inc.
US equities have tumbled this year as the Federal Reserve embarked on a path to raise interest rates to tame soaring inflation, amplifying fears of a recession. About $16.8 billion exited global stock funds in the week through June 22, with US equities seeing their first outflow in seven weeks at $17.4 billion, Bank of America Corp. said, citing EPFR Global data.
The two new ETFs will start trading on Friday in Abu Dhabi. They are the latest additions to the Chimera Umbrella Fund, which already had three other Shariah-compliant ETFs. BNY Mellon will be the funds’ global custodian, and International Securities, EFG-Hermes, Arqaam Capital, Daman Securities and BHM Capital were all authorized participants.
Two exchange-traded funds tracking US equities will be a first for the Persian Gulf’s growing ETF industry as Abu Dhabi’s Chimera Capital LLC expands its products.
The company will list Chimera S&P US Shariah Value ETF, a vehicle that will track the performance of the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index. The gauge includes stocks such as Johnson & Johnson, Procter & Gamble Co., and Exxon Mobil Corp.
Chimera will also launch Chimera S&P US Shariah Growth ETF, which will track the performance of the S&P 500 U.S. Shariah Top 30 35/20 Capped Index. This gauge tracks the performance of thirty of the biggest and most liquid Shariah-compliant constituents of the S&P 500, including companies such as Apple Inc., Tesla Inc., and Amazon.com Inc.
US equities have tumbled this year as the Federal Reserve embarked on a path to raise interest rates to tame soaring inflation, amplifying fears of a recession. About $16.8 billion exited global stock funds in the week through June 22, with US equities seeing their first outflow in seven weeks at $17.4 billion, Bank of America Corp. said, citing EPFR Global data.
The two new ETFs will start trading on Friday in Abu Dhabi. They are the latest additions to the Chimera Umbrella Fund, which already had three other Shariah-compliant ETFs. BNY Mellon will be the funds’ global custodian, and International Securities, EFG-Hermes, Arqaam Capital, Daman Securities and BHM Capital were all authorized participants.
Atlas Merchant Capital Gets Qatari Backing for Distressed Assets Platform - Bloomberg
Atlas Merchant Capital Gets Qatari Backing for Distressed Assets Platform - Bloomberg
Atlas Merchant Capital, the investment firm co-founded by former Barclays Plc Chief Executive Officer Bob Diamond, has received commitments from Qatar for a new vehicle focused on distressed assets.
The Qatar Financial Centre -- a platform through which most foreign financial firms do business in the country -- has signed a non-binding letter of intent to commit $100 million to the Atlas entity, it said in a statement on Monday.
The vehicle, which will have an office in Doha, expects to target a first close in 2022 and a final close in 2023. It is aiming for total capital commitments of $1.5 billion, and said the QFC’s backing “will help to mobilise other institutional investors.” Atlas Merchant will advise on strategy.
“The platform will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets,” the QFC statement said. “Recent global crises have created an opportunity for private investment in the sector.”
Atlas Merchant Capital, the investment firm co-founded by former Barclays Plc Chief Executive Officer Bob Diamond, has received commitments from Qatar for a new vehicle focused on distressed assets.
The Qatar Financial Centre -- a platform through which most foreign financial firms do business in the country -- has signed a non-binding letter of intent to commit $100 million to the Atlas entity, it said in a statement on Monday.
The vehicle, which will have an office in Doha, expects to target a first close in 2022 and a final close in 2023. It is aiming for total capital commitments of $1.5 billion, and said the QFC’s backing “will help to mobilise other institutional investors.” Atlas Merchant will advise on strategy.
“The platform will aim to provide liquidity to financial institutions and credit markets for the resolution of distressed assets,” the QFC statement said. “Recent global crises have created an opportunity for private investment in the sector.”
#Oman’s actual budget deficit declines 45.4% in 2021
Oman’s actual budget deficit declines 45.4% in 2021
Oman’s actual budget deficit by the end of 2021 was OMR1.223 billion ($3.18 billion), a 45.4% decline compared to the estimated deficit of OMR2.240 billion as a result of the improvement in oil prices and the rise in oil revenue.
Public revenue registered an increase by 29.6% reaching OMR11.195 billion at the end of 2021 compared to the approved budget of OMR8.640 billion. The rise is attributed to the improvement of oil prices in international markets, an Oman News Agency report said.
Actual public spending by the end of 2021 went up by 14.1% to reach OMR12.418 billion compared to the estimates of the approved public spending of OMR10.880 billion. This rise is attributed to an increase in investment expenditure by 32.6%, contributions and other expenses by 9% and the current expenditure of government units by 4.2%.
This came during the press conference organised by the Ministry of Finance to highlight the main financial indicators for Oman in 2021 and the financial performance of this year till May 2022.
Oman’s actual budget deficit by the end of 2021 was OMR1.223 billion ($3.18 billion), a 45.4% decline compared to the estimated deficit of OMR2.240 billion as a result of the improvement in oil prices and the rise in oil revenue.
Public revenue registered an increase by 29.6% reaching OMR11.195 billion at the end of 2021 compared to the approved budget of OMR8.640 billion. The rise is attributed to the improvement of oil prices in international markets, an Oman News Agency report said.
Actual public spending by the end of 2021 went up by 14.1% to reach OMR12.418 billion compared to the estimates of the approved public spending of OMR10.880 billion. This rise is attributed to an increase in investment expenditure by 32.6%, contributions and other expenses by 9% and the current expenditure of government units by 4.2%.
This came during the press conference organised by the Ministry of Finance to highlight the main financial indicators for Oman in 2021 and the financial performance of this year till May 2022.
Oil prices slip ahead of G7 talks on new Russian sanctions | Reuters
Oil prices slip ahead of G7 talks on new Russian sanctions | Reuters
Brent crude futures declined 28 cents to $112.84 a barrel by 0932 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.17 a barrel, down 45 cents, or 0.42%, following a 3.2% gain in the previous session.
#Saudi NEOM Project: Keller Gets Key Contract to Help Build the Mega City - Bloomberg
Saudi NEOM Project: Keller Gets Key Contract to Help Build the Mega City - Bloomberg
Out in the Saudi desert a new mega city is rising from the sand, a 170 km metropolis which Keller Group says has the potential to generate contract revenue in the hundreds of millions of pounds in coming years.
NEOM is a new city being built from the ground up, stretching from the Gulf of Aqaba, continuing through the Sharma Valley all the way to the upper valley region, Keller Group said in a statement Monday. The first stage of the project is known as ‘The Line’, an area divided into 135 modules, each containing 8 buildings for a total of over 1,000 structures.
Keller has signed an umbrella Framework Agreement for work on The Line, and is getting ready for the first works order. Keller estimates this work will have a value of around £50m, which it expects to complete within the next 12 months.
The company says it is “well positioned to participate in the future geotechnical work,” which has the potential to generate even greater revenue as the dream of the city becomes realised.
Out in the Saudi desert a new mega city is rising from the sand, a 170 km metropolis which Keller Group says has the potential to generate contract revenue in the hundreds of millions of pounds in coming years.
NEOM is a new city being built from the ground up, stretching from the Gulf of Aqaba, continuing through the Sharma Valley all the way to the upper valley region, Keller Group said in a statement Monday. The first stage of the project is known as ‘The Line’, an area divided into 135 modules, each containing 8 buildings for a total of over 1,000 structures.
Keller has signed an umbrella Framework Agreement for work on The Line, and is getting ready for the first works order. Keller estimates this work will have a value of around £50m, which it expects to complete within the next 12 months.
The company says it is “well positioned to participate in the future geotechnical work,” which has the potential to generate even greater revenue as the dream of the city becomes realised.
#Dubai IPO: Tecom Draws $9.6 Billion in Orders for the Share Sales - Bloomberg
Dubai IPO: Tecom Draws $9.6 Billion in Orders for the Share Sales - Bloomberg
Dubai business park operator Tecom Group drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.
Dubai’s government sold 625 million shares at 2.67 dirhams each, raising $454 million, according to a statement on Monday. The price implies a dividend yield of about 6%, following a regional trend of luring investors with juicy returns, and a market capitalization of 13.4 billion dirhams ($3.65 billion).
The price range had been set at 2.46 dirhams to 2.67 dirhams per share and investors put in enough orders to cover the books within hours on the first day. Despite being covered 21 times, Tecom’s IPO proved less popular than some recent Middle Eastern listings.
Dubai’s main utility, Dubai Electricity & Water Authority, was 37 times oversubscribed, excluding cornerstone and strategic investors, while specialty plastics maker Borouge’s IPO was about 42 times oversubscribed.
Dubai business park operator Tecom Group drew orders worth $9.63 billion for its initial public offering, the latest Middle East listing to attract strong investor demand amid a boom in regional share sales.
Dubai’s government sold 625 million shares at 2.67 dirhams each, raising $454 million, according to a statement on Monday. The price implies a dividend yield of about 6%, following a regional trend of luring investors with juicy returns, and a market capitalization of 13.4 billion dirhams ($3.65 billion).
The price range had been set at 2.46 dirhams to 2.67 dirhams per share and investors put in enough orders to cover the books within hours on the first day. Despite being covered 21 times, Tecom’s IPO proved less popular than some recent Middle Eastern listings.
Dubai’s main utility, Dubai Electricity & Water Authority, was 37 times oversubscribed, excluding cornerstone and strategic investors, while specialty plastics maker Borouge’s IPO was about 42 times oversubscribed.
#Dubai leads major Gulf bourses higher ahead of TECOM IPO | Reuters
Dubai leads major Gulf bourses higher ahead of TECOM IPO | Reuters
Major markets in the Gulf rose on Monday, in line with Asian stock markets on improved market sentiment, with the Dubai index leading the gains ahead of TECOM Group's IPO.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine. read more
MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) was up 1.19%.
Dubai's main share index (.DFMGI) advanced 1.1%, boosted by a 2.7% rise in top lender Emirates NBD (ENBD.DU) and 1% increase in blue-chip developer Emaar Properties (EMAR.DU).
Dubai business park operator TECOM Group set final price for its initial public offering at 2.67 Dirhams per share, implying a market capitalisation of AED 13.4 billion ($3.65 billion).
In Qatar, the index (.QSI) traded 0.8% higher, led by a 2.1% surge in petrochemical maker Industries Qatar (IQCD.QA) and a 2.3% jump in Masraf Al Rayan (MARK.QA).
Saudi Arabia's benchmark index (.TASI) rose 0.6%, supported by gains in banking stocks.
Index heavyweight Al Rajhi Bank (1120.SE) and Riyad Bank (1010.SE) jumped 1.6% and 1.7% respectively.
Among other stocks, Saudi Arabian Refineries (2030.SE) surged 5.2% after the company announced issuance of commercial registration for its subsidiary under the name Al-Sado Investment with a capital of 5 million Riyals.
In Abu Dhabi, the equities index (.FTFADGI) rose 0.5%, with the emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 1% and Abu Dhabi Ports (ADPORTS.AD) up 2.2%.
However, Dana Gas (DANA.AD) fell 3.2% after it said that rockets landed within the Khor Mor Block in the Kurdistan Region of Iraq.
The company also said work on the KM 250 expansion project has been temporarily suspended while security enhancements are carried out.
Major markets in the Gulf rose on Monday, in line with Asian stock markets on improved market sentiment, with the Dubai index leading the gains ahead of TECOM Group's IPO.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine. read more
MSCI's broadest index of Asia-Pacific shares (.MIAP00000PUS) was up 1.19%.
Dubai's main share index (.DFMGI) advanced 1.1%, boosted by a 2.7% rise in top lender Emirates NBD (ENBD.DU) and 1% increase in blue-chip developer Emaar Properties (EMAR.DU).
Dubai business park operator TECOM Group set final price for its initial public offering at 2.67 Dirhams per share, implying a market capitalisation of AED 13.4 billion ($3.65 billion).
In Qatar, the index (.QSI) traded 0.8% higher, led by a 2.1% surge in petrochemical maker Industries Qatar (IQCD.QA) and a 2.3% jump in Masraf Al Rayan (MARK.QA).
Saudi Arabia's benchmark index (.TASI) rose 0.6%, supported by gains in banking stocks.
Index heavyweight Al Rajhi Bank (1120.SE) and Riyad Bank (1010.SE) jumped 1.6% and 1.7% respectively.
Among other stocks, Saudi Arabian Refineries (2030.SE) surged 5.2% after the company announced issuance of commercial registration for its subsidiary under the name Al-Sado Investment with a capital of 5 million Riyals.
In Abu Dhabi, the equities index (.FTFADGI) rose 0.5%, with the emirates' biggest lender First Abu Dhabi Bank (FAB.AD) jumping 1% and Abu Dhabi Ports (ADPORTS.AD) up 2.2%.
However, Dana Gas (DANA.AD) fell 3.2% after it said that rockets landed within the Khor Mor Block in the Kurdistan Region of Iraq.
The company also said work on the KM 250 expansion project has been temporarily suspended while security enhancements are carried out.
Oil prices volatile ahead of G7 discussions on Russian exports | Reuters
Oil prices volatile ahead of G7 discussions on Russian exports | Reuters
Oil prices edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more Iranian oil exports.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, known as OPEC+, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said. read more
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat economic data from the U.S., the world's biggest oil consumer.
Brent crude futures edged down 8 cents to $113.04 a barrel by 0632 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.38 a barrel, down 24 cents, or 0.2%, following a 3.2% gain in the previous session.
Oil prices edged down on Monday in a volatile session as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations in Germany.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its war in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal, which might lead to more Iranian oil exports.
Members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, known as OPEC+, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said. read more
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat economic data from the U.S., the world's biggest oil consumer.
Brent crude futures edged down 8 cents to $113.04 a barrel by 0632 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $107.38 a barrel, down 24 cents, or 0.2%, following a 3.2% gain in the previous session.