Bahrain’s Investcorp Weighs IPO of Investment Vehicle in Abu Dhabi - Bloomberg
Investcorp Holdings, the Middle East’s biggest alternative asset manager, is considering listing an investment vehicle in Abu Dhabi, in what would be the region’s first such initial public offering.
The Bahrain-based investor has started early preparations with advisers for an IPO of the vehicle that would include some stakes in its — mainly international — assets, according to people familiar with the matter.
The company is working with First Abu Dhabi Bank PJSC, Emirates NBD PJSC, Goldman Sachs Group Inc. and Moelis & Co. on the deal, and a listing could happen as soon as this year, the people said, asking not to be identified as the information isn’t public.
Deliberations are still preliminary and details of a potential deal are still being finalized, the people said. Investcorp is also considering other venues for the listing, they said.
Representatives for Investcorp and the banks declined to comment.
Wednesday, 8 March 2023
Abraaj founder loses challenge to U.S. extradition on fraud charges | Reuters
Abraaj founder loses challenge to U.S. extradition on fraud charges | Reuters
The founder of collapsed private equity company Abraaj Group on Wednesday lost a bid to challenge his extradition from London to the United States to face fraud charges.
U.S. prosecutors allege Pakistani businessman Arif Naqvi is the architect of a plot to defraud investors including the Bill & Melinda Gates Foundation.
Naqvi has previously denied the allegations through a public relations firm.
Judge Jonathan Swift on Wednesday refused Naqvi permission to bring a judicial review against the 2021 approval of his extradition to the United States.
Naqvi’s lawyer Edward Fitzgerald told London’s High Court on Tuesday that Naqvi was likely to be held in a New Jersey prison where he may have to share a dormitory with violent criminals.
Naqvi also suffers from severe depression and there is a “real risk” of suicide if he is extradited, Fitzgerald argued.
The founder of collapsed private equity company Abraaj Group on Wednesday lost a bid to challenge his extradition from London to the United States to face fraud charges.
U.S. prosecutors allege Pakistani businessman Arif Naqvi is the architect of a plot to defraud investors including the Bill & Melinda Gates Foundation.
Naqvi has previously denied the allegations through a public relations firm.
Judge Jonathan Swift on Wednesday refused Naqvi permission to bring a judicial review against the 2021 approval of his extradition to the United States.
Naqvi’s lawyer Edward Fitzgerald told London’s High Court on Tuesday that Naqvi was likely to be held in a New Jersey prison where he may have to share a dormitory with violent criminals.
Naqvi also suffers from severe depression and there is a “real risk” of suicide if he is extradited, Fitzgerald argued.
Mideast Stocks: Most major Gulf stocks slide as Fed Chair Powell spooks markets
Mideast Stocks: Most major Gulf stocks slide as Fed Chair Powell spooks markets
Most major Gulf stock markets closed lower on Wednesday after hawkish comments by U.S. Federal Reserve Chair Jerome Powell on the likelihood of higher interest rates rattled investors in the region.
The Fed will likely need to raise interest rates more than previously expected in response to recent strong data, Powell said on the first day of his semi-annual, two-day monetary policy testimony before U.S. lawmakers on Tuesday.
Powell's hawkish stance and lower growth expectations from China affected sentiment in the GCC, said Daniel Takieddine, CEO MENA at BDSwiss. Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, directly exposing them to any monetary tightening there.
Saudi Arabia's benchmark index dropped 0.6%, snapping a six-day rally. The index was weighed down by real estate and financial stocks, with luxury real estate developer Retal Urban Development decreasing 1.3% and Al Rajhi Bank shedding more than 1%. In Abu Dhabi, the index extended its loss from the previous session, pressured by a 0.6% decline in conglomerate International Holding Co (IHC). IHC's unit Alpha Dhabi Holding was down 2.1%.
Dubai's main share index also extended declines from the previous session to close 0.1% lower, with toll operator Salik sliding 2.1%. and Dubai Electricity and Water Authority retreating 0.8%.
The Qatari benchmark index, however, bucked the trend to rise 0.3%, its sixth-positive session in a row. The index was boosted by a 3.1% jump in Qatar Islamic Bank and a more than 1% hike in Qatar National Bank , the Gulf's biggest bank by assets. After the market closed on Wednesday, QNB reported a 9% rise in annual net profit after adjusting for hyperinflation related to its business in Turkey.
Outside the Gulf, Egypt's blue-chip index, slipped 0.7%, extending losses to the fifth-consecutive session. The index was dragged down by a 9.1% dive in the country's lone cigarette maker Eastern Company and a 3.3% slide in Fawry Banking & Payment Technology Services. However, Telecom Egypt gained 4.5% after it said on Tuesday that a study to offer an additional stake in the company is in its initial phase.
Egypt is offering to sell a 10% stake in state-controlled Telecom Egypt, sources with knowledge of the offer said on Monday. The Egyptian stock market could follow other markets to the downside after Powell's stance, but upcoming IPOs and the sale of a stake in Telecom Egypt could stimulate the market, added Takieddine.
Most major Gulf stock markets closed lower on Wednesday after hawkish comments by U.S. Federal Reserve Chair Jerome Powell on the likelihood of higher interest rates rattled investors in the region.
The Fed will likely need to raise interest rates more than previously expected in response to recent strong data, Powell said on the first day of his semi-annual, two-day monetary policy testimony before U.S. lawmakers on Tuesday.
Powell's hawkish stance and lower growth expectations from China affected sentiment in the GCC, said Daniel Takieddine, CEO MENA at BDSwiss. Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, directly exposing them to any monetary tightening there.
Saudi Arabia's benchmark index dropped 0.6%, snapping a six-day rally. The index was weighed down by real estate and financial stocks, with luxury real estate developer Retal Urban Development decreasing 1.3% and Al Rajhi Bank shedding more than 1%. In Abu Dhabi, the index extended its loss from the previous session, pressured by a 0.6% decline in conglomerate International Holding Co (IHC). IHC's unit Alpha Dhabi Holding was down 2.1%.
Dubai's main share index also extended declines from the previous session to close 0.1% lower, with toll operator Salik sliding 2.1%. and Dubai Electricity and Water Authority retreating 0.8%.
The Qatari benchmark index, however, bucked the trend to rise 0.3%, its sixth-positive session in a row. The index was boosted by a 3.1% jump in Qatar Islamic Bank and a more than 1% hike in Qatar National Bank , the Gulf's biggest bank by assets. After the market closed on Wednesday, QNB reported a 9% rise in annual net profit after adjusting for hyperinflation related to its business in Turkey.
Outside the Gulf, Egypt's blue-chip index, slipped 0.7%, extending losses to the fifth-consecutive session. The index was dragged down by a 9.1% dive in the country's lone cigarette maker Eastern Company and a 3.3% slide in Fawry Banking & Payment Technology Services. However, Telecom Egypt gained 4.5% after it said on Tuesday that a study to offer an additional stake in the company is in its initial phase.
Egypt is offering to sell a 10% stake in state-controlled Telecom Egypt, sources with knowledge of the offer said on Monday. The Egyptian stock market could follow other markets to the downside after Powell's stance, but upcoming IPOs and the sale of a stake in Telecom Egypt could stimulate the market, added Takieddine.
#Qatar Appoints New Head of $450 Billion Sovereign Wealth Fund - Bloomberg
Qatar Appoints New Head of $450 Billion Sovereign Wealth Fund - Bloomberg
Qatar’s ruler appointed Sheikh Bandar bin Mohammed bin Saud Al-Thani as chairman of the Gulf state’s $450 billion sovereign wealth fund after his predecessor was named prime minister.
The change atop the Qatar Investment Authority is unlikely to result in tweaks to the fund’s strategy or its investment appetite. Chief Executive Officer Mansoor bin Ebrahim Al Mahmoud is key to the QIA’s investment policy and remains in his role.
The fund continues to be on the hunt for more overseas deals after Qatar hosted the World Cup and recently became a crucial backer of the German utility RWE AG with a 2.4 billion euro investment.
Its new chairman, Sheikh Bandar, is also Qatar’s central bank governor.
Qatar’s ruler appointed Sheikh Bandar bin Mohammed bin Saud Al-Thani as chairman of the Gulf state’s $450 billion sovereign wealth fund after his predecessor was named prime minister.
The change atop the Qatar Investment Authority is unlikely to result in tweaks to the fund’s strategy or its investment appetite. Chief Executive Officer Mansoor bin Ebrahim Al Mahmoud is key to the QIA’s investment policy and remains in his role.
The fund continues to be on the hunt for more overseas deals after Qatar hosted the World Cup and recently became a crucial backer of the German utility RWE AG with a 2.4 billion euro investment.
Its new chairman, Sheikh Bandar, is also Qatar’s central bank governor.
Abraaj’s Arif Naqvi Mounts Fresh Challenge to US Extradition - Bloomberg
Abraaj’s Arif Naqvi Mounts Fresh Challenge to US Extradition - Bloomberg
Lawyers for Abraaj Group’s Arif Naqvi, the founder of what was once the Middle East’s largest private equity fund, said there was “fresh evidence” that could overturn the UK’s decision to extradite him to the US to face fraud and racketeering charges.
There is new evidence on “serious deterioration” in the detention facility, where he would be housed in the US, his lawyer argued in a London court on Tuesday. Naqvi is also at risk of suicide if held in those conditions, he said.
Naqvi is seeking the UK High Court’s permission to appeal a 2021 court decision that said he should be sent to the US to face criminal charges. He is accused by prosecutors of hiding a liquidity crisis at his firm, while siphoning off hundreds of millions of dollars for his family.
Lawyers for the US countered that any changes to his detention would not materially alter the his conditions of stay. Naqvi is attempting to raise new arguments “smuggled under the guise of updating evidence,” they said.
Lawyers for Abraaj Group’s Arif Naqvi, the founder of what was once the Middle East’s largest private equity fund, said there was “fresh evidence” that could overturn the UK’s decision to extradite him to the US to face fraud and racketeering charges.
There is new evidence on “serious deterioration” in the detention facility, where he would be housed in the US, his lawyer argued in a London court on Tuesday. Naqvi is also at risk of suicide if held in those conditions, he said.
Naqvi is seeking the UK High Court’s permission to appeal a 2021 court decision that said he should be sent to the US to face criminal charges. He is accused by prosecutors of hiding a liquidity crisis at his firm, while siphoning off hundreds of millions of dollars for his family.
Lawyers for the US countered that any changes to his detention would not materially alter the his conditions of stay. Naqvi is attempting to raise new arguments “smuggled under the guise of updating evidence,” they said.
OPEC Concerned About Demand Slowdown in US, Europe, Chief Says - Bloomberg
OPEC Concerned About Demand Slowdown in US, Europe, Chief Says - Bloomberg
OPEC’s top official said slowing oil demand in Europe and the US are posing a concern for the global market, even as Asia experiences “phenomenal” growth.
“We see a divided market — almost like two markets,” OPEC Secretary-General Haitham Al-Ghais said at the CERAWeek by S&P Global conference Tuesday. Ensuring “security of demand” in regions where inflation is crimping consumption is as critical as ensuring supplies, he said.
For now, though, rebounding demand in Asia will help keep the market broadly balanced in the first half of the year, with global consumption seen rising by 2.3 million barrels a day to average 101.87 million barrels a day in 2023, according to the latest report from OPEC’s Vienna-based secretariat. After that, the market is expected to tighten as global inventories decline and the 23-nation OPEC+ coalition, led by Saudi Arabia, aims to keep production levels unchanged for the rest of the year.
OPEC’s top official said slowing oil demand in Europe and the US are posing a concern for the global market, even as Asia experiences “phenomenal” growth.
“We see a divided market — almost like two markets,” OPEC Secretary-General Haitham Al-Ghais said at the CERAWeek by S&P Global conference Tuesday. Ensuring “security of demand” in regions where inflation is crimping consumption is as critical as ensuring supplies, he said.
For now, though, rebounding demand in Asia will help keep the market broadly balanced in the first half of the year, with global consumption seen rising by 2.3 million barrels a day to average 101.87 million barrels a day in 2023, according to the latest report from OPEC’s Vienna-based secretariat. After that, the market is expected to tighten as global inventories decline and the 23-nation OPEC+ coalition, led by Saudi Arabia, aims to keep production levels unchanged for the rest of the year.
#SaudiArabia's PIF Set to Start Investor Meetings for $1 Billion ADES IPO - Bloomberg
Saudi Arabia's PIF Set to Start Investor Meetings for $1 Billion ADES IPO - Bloomberg
Saudi Arabia’s wealth fund plans to kick off investor meetings for the initial public offering of oil and gas driller ADES International Holding as soon as this month, people familiar with the matter said.
The Public Investment Fund is targeting a first-half listing for ADES and is likely to soon file with the Saudi regulator, the people said, asking not to be identified as the matter is private. The PIF has picked Lazard Ltd. as a financial adviser to work on the IPO, they said.
A listing could value the business — whose clients include Saudi Arabian Oil Co. and Kuwait Oil Co. — at about $5 billion and raise about $1 billion, Bloomberg reported in November.
Deliberations are in the early stages and no final decisions have been made. The PIF declined to comment, while representatives for Lazard and ADES didn’t immediately respond to requests for comment.
PIF teamed up with the major owners of ADES to take the business private in 2021, in a deal valuing the company at about $516 million. ADES, which provides oil-and-gas drilling and production services in the Middle East and North Africa, has since grown through acquisitions.
The company bought seven jack-up rigs last year from Seadrill Ltd. for about $628 million in cash. In all, ADES has 84 onshore and offshore rigs across markets including Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, and Tunisia, it said at the time.
Saudi Arabia’s wealth fund plans to kick off investor meetings for the initial public offering of oil and gas driller ADES International Holding as soon as this month, people familiar with the matter said.
The Public Investment Fund is targeting a first-half listing for ADES and is likely to soon file with the Saudi regulator, the people said, asking not to be identified as the matter is private. The PIF has picked Lazard Ltd. as a financial adviser to work on the IPO, they said.
A listing could value the business — whose clients include Saudi Arabian Oil Co. and Kuwait Oil Co. — at about $5 billion and raise about $1 billion, Bloomberg reported in November.
Deliberations are in the early stages and no final decisions have been made. The PIF declined to comment, while representatives for Lazard and ADES didn’t immediately respond to requests for comment.
PIF teamed up with the major owners of ADES to take the business private in 2021, in a deal valuing the company at about $516 million. ADES, which provides oil-and-gas drilling and production services in the Middle East and North Africa, has since grown through acquisitions.
The company bought seven jack-up rigs last year from Seadrill Ltd. for about $628 million in cash. In all, ADES has 84 onshore and offshore rigs across markets including Saudi Arabia, Kuwait, Qatar, Egypt, Algeria, and Tunisia, it said at the time.
Mideast Stocks: Major Gulf bourses in red on interest rate hike worries
Mideast Stocks: Major Gulf bourses in red on interest rate hike worries
Major stock markets in the Gulf fell in early trade on Wednesday, tracking Asian equities after the U.S. Federal Reserve Chair reiterated the likelihood of sharp rate hikes to tame inflation.
In his comments, Jerome Powell confirmed that a recent spate of generally robust economic data, particularly in the labor market, along sticky inflation, increases the likelihood that the Fed will raise its policy rate more aggressively.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index dropped more than 1%, weighed down by a 1.5% fall in Al Rajhi Bank and a 2.6% slide in Riyad Bank.
Separately, decisions on oil output taken by OPEC+ countries reflect consensus in the group, the Saudi foreign minister said on Tuesday after reports of differences among members.
Foreign Minister Prince Faisal bin Farhan Al Saud played down a Wall Street Journal report of divergence between Saudi Arabia and the UAE on a range of policy areas including OPEC and Yemen.
Dubai's main share index declined 0.7%, with toll operator Salik sliding 2.9%. and Dubai Electricity and Water Authority retreating 1.2%.
In Abu Dhabi, the index was down 0.5%, on course to extend losses from the previous session.
Oil prices fell for a second straight session on Wednesday, driven by fears that more aggressive U.S. interest rate hikes would hit demand, while the market awaited further clarity on inventories.
The Qatari benchmark lost 0.6%, as most of the stocks on the index were in negative territory, including telecoms firm Ooredoo, which was down 5.6% as the stock went ex-dividend.
Major stock markets in the Gulf fell in early trade on Wednesday, tracking Asian equities after the U.S. Federal Reserve Chair reiterated the likelihood of sharp rate hikes to tame inflation.
In his comments, Jerome Powell confirmed that a recent spate of generally robust economic data, particularly in the labor market, along sticky inflation, increases the likelihood that the Fed will raise its policy rate more aggressively.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index dropped more than 1%, weighed down by a 1.5% fall in Al Rajhi Bank and a 2.6% slide in Riyad Bank.
Separately, decisions on oil output taken by OPEC+ countries reflect consensus in the group, the Saudi foreign minister said on Tuesday after reports of differences among members.
Foreign Minister Prince Faisal bin Farhan Al Saud played down a Wall Street Journal report of divergence between Saudi Arabia and the UAE on a range of policy areas including OPEC and Yemen.
Dubai's main share index declined 0.7%, with toll operator Salik sliding 2.9%. and Dubai Electricity and Water Authority retreating 1.2%.
In Abu Dhabi, the index was down 0.5%, on course to extend losses from the previous session.
Oil prices fell for a second straight session on Wednesday, driven by fears that more aggressive U.S. interest rate hikes would hit demand, while the market awaited further clarity on inventories.
The Qatari benchmark lost 0.6%, as most of the stocks on the index were in negative territory, including telecoms firm Ooredoo, which was down 5.6% as the stock went ex-dividend.