Dubai’s First IPO of the Year Sells Out in Under an Hour - Bloomberg
The Dubai initial public offering of remittances and money exchange firm Al Ansari Financial Services received orders for all shares offered within an hour of books opening, marking a strong start for the emirate’s first listing of the year.
The owners of Al Ansari are seeking to raise as much as $210 million in the IPO, with the price range set at 1 dirham to 1.03 dirhams (28 cents) per share, according to a statement on Thursday. Al Ansari Holding LLC is selling 750 million shares in the offering, or a 10% stake.
The order books were covered across the price range in less than an hour, according to terms of the deal seen by Bloomberg News, showing strong demand for the offering despite broader market turmoil following the collapse of Silicon Valley Bank and worries about Credit Suisse Group AG’s financial health.
The price range implies a dividend yield of at least 7.8% to 8%, higher than previous IPO candidates in the city and enticing investors with juicy returns in a high interest rate environment.
Thursday 16 March 2023
#Saudi Eyecare Group Magrabi Pauses Hospitals IPO Plan - Bloomberg
Saudi Eyecare Group Magrabi Pauses Hospitals IPO Plan - Bloomberg
Magrabi Medical Group Holdings Co., an operator of eyewear stores and clinics in the Middle East, has paused plans for an initial public offering of its hospitals business in Saudi Arabia, people with knowledge of the matter said.
The family-owned company put the IPO on ice after deciding the business needs more time to develop before going public, according to the people, who asked not to be identified discussing confidential information.
Magrabi last year asked banks to pitch for a role on an IPO on the Saudi stock exchange, Bloomberg News reported. Rothschild & Co. was advising Magrabi at the time.
Deliberations are ongoing and IPO plans could still be revived this year, depending on market conditions, but Rothschild is not currently working on a potential listing, the people said. Representatives for Magrabi and Rothschild declined to comment.
While investor appetite for listings in the Middle East remains strong compared with other regions, broader uncertainty in markets has had a cooling effect of late. Companies have raised $3.3 billion from IPOs in the Gulf this year, down almost a third on the same point in 2022, data compiled by Bloomberg show. There have been no sizable listings in Saudi Arabia this year, the data show.
Magrabi is one of the Middle East’s leading optical retailers and operator of eye clinics. It opened a specialist hospital in 1955 and now runs more than 150 stores across five countries in the region, according to its website. It also operates more than 20 hospitals and clinics. Magrabi previously considered the sale of a minority stake in its business in 2017.
Magrabi Medical Group Holdings Co., an operator of eyewear stores and clinics in the Middle East, has paused plans for an initial public offering of its hospitals business in Saudi Arabia, people with knowledge of the matter said.
The family-owned company put the IPO on ice after deciding the business needs more time to develop before going public, according to the people, who asked not to be identified discussing confidential information.
Magrabi last year asked banks to pitch for a role on an IPO on the Saudi stock exchange, Bloomberg News reported. Rothschild & Co. was advising Magrabi at the time.
Deliberations are ongoing and IPO plans could still be revived this year, depending on market conditions, but Rothschild is not currently working on a potential listing, the people said. Representatives for Magrabi and Rothschild declined to comment.
While investor appetite for listings in the Middle East remains strong compared with other regions, broader uncertainty in markets has had a cooling effect of late. Companies have raised $3.3 billion from IPOs in the Gulf this year, down almost a third on the same point in 2022, data compiled by Bloomberg show. There have been no sizable listings in Saudi Arabia this year, the data show.
Magrabi is one of the Middle East’s leading optical retailers and operator of eye clinics. It opened a specialist hospital in 1955 and now runs more than 150 stores across five countries in the region, according to its website. It also operates more than 20 hospitals and clinics. Magrabi previously considered the sale of a minority stake in its business in 2017.
#SaudiArabia Says Fiscal Expansion to Balance Out Fed Tightening - Bloomberg
Saudi Arabia Says Fiscal Expansion to Balance Out Fed Tightening - Bloomberg
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Saudi Arabia will rely on fiscal loosening to “balance out” the tight monetary policy imported from the US Federal Reserve, a senior government official said, even as turmoil in oil markets injects more uncertainty for the kingdom’s budget.
Speaking in an interview with Bloomberg Television on Thursday, Minister of Economy and Planning Faisal bin Fadhil Alibrahim described Saudi Arabia as having an “expansionary fiscal environment” that he said will offset the impact of higher interest rates.
The world’s largest oil exporter has largely moved in lockstep with the US to protect its currency peg to the dollar even as the Fed embarked on its most aggressive tightening campaign in a generation to cool off inflation.
But price gains in Saudi Arabia have been far more modest, driven recently by apartment rental costs. A cap on domestic fuel prices introduced in 2021 has been among factors constraining inflation.
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Saudi Arabia will rely on fiscal loosening to “balance out” the tight monetary policy imported from the US Federal Reserve, a senior government official said, even as turmoil in oil markets injects more uncertainty for the kingdom’s budget.
Speaking in an interview with Bloomberg Television on Thursday, Minister of Economy and Planning Faisal bin Fadhil Alibrahim described Saudi Arabia as having an “expansionary fiscal environment” that he said will offset the impact of higher interest rates.
The world’s largest oil exporter has largely moved in lockstep with the US to protect its currency peg to the dollar even as the Fed embarked on its most aggressive tightening campaign in a generation to cool off inflation.
But price gains in Saudi Arabia have been far more modest, driven recently by apartment rental costs. A cap on domestic fuel prices introduced in 2021 has been among factors constraining inflation.
Mideast Stocks: Most Middle Eastern bourses slide further as bank turmoil jolts markets
Mideast Stocks: Most Middle Eastern bourses slide further as bank turmoil jolts markets
Most Middle Eastern stocks ended lower on Thursday with the Egyptian bourse posting its biggest weekly loss in nearly three years after news that Credit Suisse's largest investor said it could not provide the lender with more financial assistance.
A week ago start-up lender Silicon Valley Bank in California failed, and now a systemic bank in one of Europe's financial capitals is in enough trouble to seek authorities' help. Credit Suisse - which tumbled 24% in the previous session - on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.
Saudi Arabia's benchmark index retreated 0.7%, weighed down by a 1.4% fall in Retal Urban Development Co and a 2.9% slide in the country's biggest lender Saudi National Bank SNB. The chair of SNB, which last year acquired an almost 10% stake in Credit Suisse, said on Wednesday the bank was not considering any specific international opportunities. The lender has lost more than $26 billion in market value since Oct. 27 after committing to invest in the embattled Credit Suisse.
Egypt's blue-chip index inched 0.1% lower, with Commercial International Bank losing 1%.
The Egyptian index posted a weekly loss of more than 10%. In Egypt, the increasingly large initial public offering (IPO) program could become a growth factor for the stock market and could help reverse the current downtrend, said Daniel Takieddine, CEO MENA at BDSwiss.
"While international investors have been on the selling side lately, IPOs and a subduing banking crisis could help attract them back."
Dubai's main share index fell 0.1%, hit by a 1.4% fall in toll operator Salik Co, while Aramex finished 4% lower after the logistics firm slashed its annual dividend.
In Abu Dhabi, the index retreated 0.9%, hitting its lowest since late January.
The Qatari index declined 2%, weighed down by a 10% slide in petrochemical maker Industries Qatar as the stock went ex-dividend. Among other losers, sharia-compliant lender Masraf Al Rayan and Commercial Bank tumbled 3.6% and 2.2% respectively. Both lenders were trading ex-dividend.
Most Middle Eastern stocks ended lower on Thursday with the Egyptian bourse posting its biggest weekly loss in nearly three years after news that Credit Suisse's largest investor said it could not provide the lender with more financial assistance.
A week ago start-up lender Silicon Valley Bank in California failed, and now a systemic bank in one of Europe's financial capitals is in enough trouble to seek authorities' help. Credit Suisse - which tumbled 24% in the previous session - on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.
Saudi Arabia's benchmark index retreated 0.7%, weighed down by a 1.4% fall in Retal Urban Development Co and a 2.9% slide in the country's biggest lender Saudi National Bank SNB. The chair of SNB, which last year acquired an almost 10% stake in Credit Suisse, said on Wednesday the bank was not considering any specific international opportunities. The lender has lost more than $26 billion in market value since Oct. 27 after committing to invest in the embattled Credit Suisse.
Egypt's blue-chip index inched 0.1% lower, with Commercial International Bank losing 1%.
The Egyptian index posted a weekly loss of more than 10%. In Egypt, the increasingly large initial public offering (IPO) program could become a growth factor for the stock market and could help reverse the current downtrend, said Daniel Takieddine, CEO MENA at BDSwiss.
"While international investors have been on the selling side lately, IPOs and a subduing banking crisis could help attract them back."
Dubai's main share index fell 0.1%, hit by a 1.4% fall in toll operator Salik Co, while Aramex finished 4% lower after the logistics firm slashed its annual dividend.
In Abu Dhabi, the index retreated 0.9%, hitting its lowest since late January.
The Qatari index declined 2%, weighed down by a 10% slide in petrochemical maker Industries Qatar as the stock went ex-dividend. Among other losers, sharia-compliant lender Masraf Al Rayan and Commercial Bank tumbled 3.6% and 2.2% respectively. Both lenders were trading ex-dividend.
DP World's full-year profit soars 37% on strong revenue growth
DP World's full-year profit soars 37% on strong revenue growth
DP World, one of the world's largest port operators, said its annual profit soared 37 per cent in 2022, on higher revenue growth driven by the solid performance of ports and terminals, and marine services.
Profit attributable to owners of the company, after separately disclosed items during the year, increased to more than $1.2 billion from 2021, DP World said in a filing to Nasdaq Dubai on Thursday.
Revenue for the year surged 59 per cent to more than $17 billion, supported by acquisitions and like-for-like growth, with containerised revenue increasing by 12 per cent on higher demand for ancillary container services.
DP World reported a 3 per cent rise in container volumes last year, handling 79 million 20-foot equivalent units, or TEUs, across its global portfolio, with the Asia-Pacific region and India, growing 6 per cent, Australia and Americas expanding 5 per cent, and the Middle East, Africa and Europe gaining 1.5 per cent.
The global port operator’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 31 per cent to more than $5 billion.
DP World, one of the world's largest port operators, said its annual profit soared 37 per cent in 2022, on higher revenue growth driven by the solid performance of ports and terminals, and marine services.
Profit attributable to owners of the company, after separately disclosed items during the year, increased to more than $1.2 billion from 2021, DP World said in a filing to Nasdaq Dubai on Thursday.
Revenue for the year surged 59 per cent to more than $17 billion, supported by acquisitions and like-for-like growth, with containerised revenue increasing by 12 per cent on higher demand for ancillary container services.
DP World reported a 3 per cent rise in container volumes last year, handling 79 million 20-foot equivalent units, or TEUs, across its global portfolio, with the Asia-Pacific region and India, growing 6 per cent, Australia and Americas expanding 5 per cent, and the Middle East, Africa and Europe gaining 1.5 per cent.
The global port operator’s adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 31 per cent to more than $5 billion.
#Dubai’s Damac posts $382mln profit in 2022
Dubai’s Damac posts $382mln profit in 2022
Dubai-based developer Damac has announced a 2022 profit of 1.404 billion UAE dirhams ($382 million) after it converted to a private firm in March last year.
The real estate company was de-listed from Dubai Financial Market (DFM) last year following a takeover by chairman and founder Hussain Sajwani’s vehicle Maple Invest Limited.
The firm posted a loss of 528 million UAE dirhams in 2021. Revenue for 2022 reached 3 billion UAE dirhams, up from 2.967 billion UAE dirhams in 2021.
Damac Real Estate Development Limited financial results documents posted on Nasdaq Dubai by Cayman incorporated Alpha Star Holding V Limited reported Damac’s assets to be at 21.6 billion UAE dirhams at the end of 2022, down from 22.318 billion UAE dirhams in 2021.
Dubai-based developer Damac has announced a 2022 profit of 1.404 billion UAE dirhams ($382 million) after it converted to a private firm in March last year.
The real estate company was de-listed from Dubai Financial Market (DFM) last year following a takeover by chairman and founder Hussain Sajwani’s vehicle Maple Invest Limited.
The firm posted a loss of 528 million UAE dirhams in 2021. Revenue for 2022 reached 3 billion UAE dirhams, up from 2.967 billion UAE dirhams in 2021.
Damac Real Estate Development Limited financial results documents posted on Nasdaq Dubai by Cayman incorporated Alpha Star Holding V Limited reported Damac’s assets to be at 21.6 billion UAE dirhams at the end of 2022, down from 22.318 billion UAE dirhams in 2021.
Gulf buy-now-pay-later firm Tamara in $150 mln funding deal with Goldman Sachs | Reuters
Gulf buy-now-pay-later firm Tamara in $150 mln funding deal with Goldman Sachs | Reuters
Gulf-based Tamara, a buy now, pay later (BNPL) company, said on Thursday it had agreed an up to $150 million funding facility with Goldman Sachs (GS.N) to help finance its growth.
The loan, known as a receivables warehouse facility, brings Tamara's total funding in equity and debt to $366 million since its launch in September 2020, it said in a statement.
In August, Tamara raised $100 million in a fundraising round that included Sanabil Investments, which is owned by Saudi Arabia's sovereign Public Investment Fund.
The Riyadh-headquartered company has signed up six million customers since its start, it said the statement. It is among the Gulf Arab region's largest BNPL providers and its competitors include Dubai-based Tabby, which says it has three million active users.
"It is crucial for us to work with global and regional financial partners with strong balance sheets that have the capacity to provide incremental funding to support our vision," Tamara co-founder and CEO Abdulmajeed Alsukhan said in the statement.
He said the financing deal was "the first of its kind in the region".
Gulf-based Tamara, a buy now, pay later (BNPL) company, said on Thursday it had agreed an up to $150 million funding facility with Goldman Sachs (GS.N) to help finance its growth.
The loan, known as a receivables warehouse facility, brings Tamara's total funding in equity and debt to $366 million since its launch in September 2020, it said in a statement.
In August, Tamara raised $100 million in a fundraising round that included Sanabil Investments, which is owned by Saudi Arabia's sovereign Public Investment Fund.
The Riyadh-headquartered company has signed up six million customers since its start, it said the statement. It is among the Gulf Arab region's largest BNPL providers and its competitors include Dubai-based Tabby, which says it has three million active users.
"It is crucial for us to work with global and regional financial partners with strong balance sheets that have the capacity to provide incremental funding to support our vision," Tamara co-founder and CEO Abdulmajeed Alsukhan said in the statement.
He said the financing deal was "the first of its kind in the region".
#UAE exchange house Al Ansari seeks up to $210 million in IPO | Reuters
UAE exchange house Al Ansari seeks up to $210 million in IPO | Reuters
UAE-based exchange house Al Ansari Financial Services is looking to raise up to 772.5 million dirhams ($210.4 million) from an initial public offering (IPO), it said on Thursday.
Al Ansari, which last week announced an intention to float 10% of the company on the Dubai Financial Market, will price its shares between 1.00 and 1.03 dirhams, implying a valuation of 7.5 billion-7.73 billion dirhams, it said in a statement.
Books were covered shortly after opening, according to a note to investors seen by Reuters.
Middle East companies bucked global trends last year to raise about $22 billion through IPOs, according to Dealogic, which was more than half the total for the wider Europe, Middle East and Africa region.
UAE's National Bonds Corp, owned by the sovereign wealth fund Investment Corporation of Dubai, has committed 200 million dirhams as a cornerstone investor in Al Ansari's IPO, the exchange house said.
UAE-based exchange house Al Ansari Financial Services is looking to raise up to 772.5 million dirhams ($210.4 million) from an initial public offering (IPO), it said on Thursday.
Al Ansari, which last week announced an intention to float 10% of the company on the Dubai Financial Market, will price its shares between 1.00 and 1.03 dirhams, implying a valuation of 7.5 billion-7.73 billion dirhams, it said in a statement.
Books were covered shortly after opening, according to a note to investors seen by Reuters.
Middle East companies bucked global trends last year to raise about $22 billion through IPOs, according to Dealogic, which was more than half the total for the wider Europe, Middle East and Africa region.
UAE's National Bonds Corp, owned by the sovereign wealth fund Investment Corporation of Dubai, has committed 200 million dirhams as a cornerstone investor in Al Ansari's IPO, the exchange house said.
Major Gulf bourses tumble as Credit Suisse fears spook investors | Reuters
Major Gulf bourses tumble as Credit Suisse fears spook investors | Reuters
Major stock markets in the Gulf retreated in early trade on Thursday and were on course to extend their losses further following news that Credit Suisse's largest investor said it could not provide the lender with more financial assistance.
A week ago a start-up lender Silicon Valley Bank in California failed and now a systemic bank in one of Europe's financial capitals is in enough trouble to seek authorities' help.
Credit Suisse (CSGN.S) - which tumbled 24% in the previous session - on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.
Saudi National Bank (1180.SE) — the kingdom's biggest lender — acquired a stake of almost 10% last year after taking part in Credit Suisse's capital raising and committed to investing up to 1.5 billion Swiss francs ($1.62 billion).
Saudi Arabia's benchmark index (.TASI) fell 0.5%, with Saudi National Bank tumbling 3.7%, trading at its lowest since November 2020.
The lender lost almost $27 billion in market value since Oct. 27 after committing to invest in the embattled Credit Suisse.
Elsewhere, oil giant Saudi Aramco (2222.SE) was down 1.7%.
Dubai's main share index (.DFMGI), which snapped a six-day losing streak in the previous session, slipped back into negative territory to trade 0.6% lower.
In Abu Dhabi, the index (.FTFADGI) was down 0.7%.
The Qatari index (.QSI) declined 2.1%, weighed down by a 9.4% slide in petrochemical maker Industries Qatar (IQCD.QA) as the stock went ex-dividend.
Among other losers, sharia-compliant lender Masraf Al Rayan (MARK.QA) and Commercial Bank (COMB.QA) slipped 3.9% and 3.1% respectively. Both lenders were trading ex-dividend.
Major stock markets in the Gulf retreated in early trade on Thursday and were on course to extend their losses further following news that Credit Suisse's largest investor said it could not provide the lender with more financial assistance.
A week ago a start-up lender Silicon Valley Bank in California failed and now a systemic bank in one of Europe's financial capitals is in enough trouble to seek authorities' help.
Credit Suisse (CSGN.S) - which tumbled 24% in the previous session - on Thursday said it would borrow up to $54 billion from the Swiss central bank to shore up liquidity and investor confidence after a slump in its shares intensified fears about a global banking crisis.
Saudi National Bank (1180.SE) — the kingdom's biggest lender — acquired a stake of almost 10% last year after taking part in Credit Suisse's capital raising and committed to investing up to 1.5 billion Swiss francs ($1.62 billion).
Saudi Arabia's benchmark index (.TASI) fell 0.5%, with Saudi National Bank tumbling 3.7%, trading at its lowest since November 2020.
The lender lost almost $27 billion in market value since Oct. 27 after committing to invest in the embattled Credit Suisse.
Elsewhere, oil giant Saudi Aramco (2222.SE) was down 1.7%.
Dubai's main share index (.DFMGI), which snapped a six-day losing streak in the previous session, slipped back into negative territory to trade 0.6% lower.
In Abu Dhabi, the index (.FTFADGI) was down 0.7%.
The Qatari index (.QSI) declined 2.1%, weighed down by a 9.4% slide in petrochemical maker Industries Qatar (IQCD.QA) as the stock went ex-dividend.
Among other losers, sharia-compliant lender Masraf Al Rayan (MARK.QA) and Commercial Bank (COMB.QA) slipped 3.9% and 3.1% respectively. Both lenders were trading ex-dividend.