Al Ansari Owners Raise $210 Million in Dubai’s First IPO of 2023 - Bloomberg
The owners of remittance and money exchange firm Al Ansari Financial Services raised 773 million dirhams ($210 million) after pricing shares at the top of the range.
Al Ansari Holding LLC sold 750 million shares for 1.03 dirhams each, valuing the company at $2.1 billion, according to a statement on Monday. Its shares will start trading on April 6.
The IPO — Dubai’s first this year — attracted total demand of more than 12.7 billion dirhams, including a 200 million-dirham commitment from cornerstone investor National Bonds Corp. Excluding the cornerstone tranche, the IPO was oversubscribed about 22 times.
Al Ansari had received enough orders for all of the shares on offer within an hour of books opening on March 16 even as markets were roiled by the collapse of several mid-sized US lenders and concerns over Credit Suisse Group AG.
Monday, 27 March 2023
#Saudi Aramco's Deal Will Cement China's Oil Demand and Push Its Peak Higher - Bloomberg
Saudi Aramco's Deal Will Cement China's Oil Demand and Push Its Peak Higher - Bloomberg
Every year, state-owned giant China National Oil Corp. publishes an estimate of when the country’s oil demand might peak. Over the last few years, the date hasn’t changed much — give or take, around 2030 — but the apex just keeps moving higher.
In 2018, CNPC said Chinese consumption would climax at about 690 million metric tons. In 2019, it revised its forecast to 705 million tons; in 2020, to 740 million; and in 2021 to 780 million. Translated into barrels a day using a typical conversion factor, the 2018-to-2021 increase equates to 1.8 million more barrels a day, or nearly as much as the current daily oil consumption of Germany.
For all the jibber-jabber about slowing Chinese demand — whether due to climate change policies or restrained economic growth — the Middle Kingdom is gulping more and more crude. And the trend is set to continue, at least for a few more years, thanks to new deals with Saudi Arabia.
The Saudis have attempted to crack open China’s oil-refining industry for decades, trying to buy stakes as a beachhead to supply more oil into the People’s Republic. It’s a well-worn strategy: The Saudis did the same in other big petroleum markets, investing in refiners from Japan to the US to South Korea. In exchange for their equity, the Saudis locked in sales of their oil. It’s a money-for-crude investment that guarantees the Saudis steady demand for their oil.
Every year, state-owned giant China National Oil Corp. publishes an estimate of when the country’s oil demand might peak. Over the last few years, the date hasn’t changed much — give or take, around 2030 — but the apex just keeps moving higher.
In 2018, CNPC said Chinese consumption would climax at about 690 million metric tons. In 2019, it revised its forecast to 705 million tons; in 2020, to 740 million; and in 2021 to 780 million. Translated into barrels a day using a typical conversion factor, the 2018-to-2021 increase equates to 1.8 million more barrels a day, or nearly as much as the current daily oil consumption of Germany.
For all the jibber-jabber about slowing Chinese demand — whether due to climate change policies or restrained economic growth — the Middle Kingdom is gulping more and more crude. And the trend is set to continue, at least for a few more years, thanks to new deals with Saudi Arabia.
The Saudis have attempted to crack open China’s oil-refining industry for decades, trying to buy stakes as a beachhead to supply more oil into the People’s Republic. It’s a well-worn strategy: The Saudis did the same in other big petroleum markets, investing in refiners from Japan to the US to South Korea. In exchange for their equity, the Saudis locked in sales of their oil. It’s a money-for-crude investment that guarantees the Saudis steady demand for their oil.
Mideast Stocks: Gulf markets mostly subdued despite rising oil prices
Mideast Stocks: Gulf markets mostly subdued despite rising oil prices
Gulf stock markets were mostly subdued on Monday, with banking shares taking the biggest hit across the markets as investors in the region were cautious despite some gains in oil prices and an easing of global banking stability fears.
Sentiment among investors remained pessimistic as concerns around the banking sector’s woes remain in investors’ minds, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.
Oil prices - a key catalyst for Gulf financial markets - rose on Monday after a halt to oil exports from Iraqi Kurdistan via Turkey and moves to contain a potential banking crisis, with Brent crude futures gaining $1.16, or 1.6%, at $76.15 a barrel by 1210 GMT.
Abu Dhabi's share index dropped 0.8%, in its third day in the red, dragged down by a 0.3% decline in UAE's largest lender First Abu Dhabi Bank.
Dubai's main share index declined 0.7%, extending losses to a second consecutive session, led by drops in its financial stocks, with Emirates NBD Bank, UAE's largest lender, decreasing 1.9% and Dubai Islamic Bank tumbling 2.1%.
The Qatari benchmark index also fell 0.3%, ending a four day rally, weighed down by a 1.2% dive in Qatar National Bank, the Gulf's biggest bank by assets, and a 0.8% retreat in chemical makers Industries Qatar.
Saudi Arabia's benchmark index closed flat, as heavy losses in material sectors were capped by gains in healthcare stocks, with Dr. Sulaiman Al-Habib Medical Services gaining 3.8% but Sabic Agri-Nutrients, which was trading ex-dividend, recorded its sharpest intraday decline in over three years, to close 8.3% lower. Index heavyweight Saudi Aramco also fell 0.2%. Aramco said on Monday it has raised its multi-billion dollar investment in China by finalising and upgrading a planned joint venture in northeast China and acquiring an expanded stake in a privately controlled petrochemical group.
Outside the Gulf, Egypt's blue-chip index, closed 0.2% lower, with index heavyweight Commercial International Bank Egypt shedding 0.4% and EFG Hermes Holdings losing 2.9%. The country's lone cigarette maker, Eastern Company , however, surged 7.4% after on Sunday it revised the price of some products.
Gulf stock markets were mostly subdued on Monday, with banking shares taking the biggest hit across the markets as investors in the region were cautious despite some gains in oil prices and an easing of global banking stability fears.
Sentiment among investors remained pessimistic as concerns around the banking sector’s woes remain in investors’ minds, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.
Oil prices - a key catalyst for Gulf financial markets - rose on Monday after a halt to oil exports from Iraqi Kurdistan via Turkey and moves to contain a potential banking crisis, with Brent crude futures gaining $1.16, or 1.6%, at $76.15 a barrel by 1210 GMT.
Abu Dhabi's share index dropped 0.8%, in its third day in the red, dragged down by a 0.3% decline in UAE's largest lender First Abu Dhabi Bank.
Dubai's main share index declined 0.7%, extending losses to a second consecutive session, led by drops in its financial stocks, with Emirates NBD Bank, UAE's largest lender, decreasing 1.9% and Dubai Islamic Bank tumbling 2.1%.
The Qatari benchmark index also fell 0.3%, ending a four day rally, weighed down by a 1.2% dive in Qatar National Bank, the Gulf's biggest bank by assets, and a 0.8% retreat in chemical makers Industries Qatar.
Saudi Arabia's benchmark index closed flat, as heavy losses in material sectors were capped by gains in healthcare stocks, with Dr. Sulaiman Al-Habib Medical Services gaining 3.8% but Sabic Agri-Nutrients, which was trading ex-dividend, recorded its sharpest intraday decline in over three years, to close 8.3% lower. Index heavyweight Saudi Aramco also fell 0.2%. Aramco said on Monday it has raised its multi-billion dollar investment in China by finalising and upgrading a planned joint venture in northeast China and acquiring an expanded stake in a privately controlled petrochemical group.
Outside the Gulf, Egypt's blue-chip index, closed 0.2% lower, with index heavyweight Commercial International Bank Egypt shedding 0.4% and EFG Hermes Holdings losing 2.9%. The country's lone cigarette maker, Eastern Company , however, surged 7.4% after on Sunday it revised the price of some products.
#Oman's OQ seeks bookrunners for gas pipelines IPO, sources say | Reuters
Oman's OQ seeks bookrunners for gas pipelines IPO, sources say | Reuters
Oman's OQ Gas Network, the pipelines business of the sultanate's state oil giant OQ, has invited banks to pitch for bookrunner roles in its planned initial public offering (IPO), two sources close to the matter told Reuters
OQ Gas Network is preparing for a public share sale that could take place as early as June, the sources said on condition of anonymity because the matter was not public.
One of the sources said OQ could raise more than $500 million from the deal.
Bank of America (BAC.N) and Bank Muscat (BKMB.OM) were selected last year for top roles on the deal, the sources said.
OQ declined to comment when contacted by Reuters on Monday.
Reuters reported last May that Oman's state energy company was considering an IPO of its gas pipeline network.
The planned IPO follows this month's flotation of OQ's oil drilling business, Abraj Energy Services, which raised $244 million from selling a 49% stake.
OQ Gas Network is Oman's exclusive gas transportation system operator, which supplies natural gas to the country's power plants, freezones, industrial clusters, LNG complexes and other customers.
Companies from the Middle East raised $21.9 billion through IPOs in 2022, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.
Oman's OQ Gas Network, the pipelines business of the sultanate's state oil giant OQ, has invited banks to pitch for bookrunner roles in its planned initial public offering (IPO), two sources close to the matter told Reuters
OQ Gas Network is preparing for a public share sale that could take place as early as June, the sources said on condition of anonymity because the matter was not public.
One of the sources said OQ could raise more than $500 million from the deal.
Bank of America (BAC.N) and Bank Muscat (BKMB.OM) were selected last year for top roles on the deal, the sources said.
OQ declined to comment when contacted by Reuters on Monday.
Reuters reported last May that Oman's state energy company was considering an IPO of its gas pipeline network.
The planned IPO follows this month's flotation of OQ's oil drilling business, Abraj Energy Services, which raised $244 million from selling a 49% stake.
OQ Gas Network is Oman's exclusive gas transportation system operator, which supplies natural gas to the country's power plants, freezones, industrial clusters, LNG complexes and other customers.
Companies from the Middle East raised $21.9 billion through IPOs in 2022, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.
#Saudi Aramco Takes $3.6 Billion Stake in China Oil Refinery Rongsheng - Bloomberg
Saudi Aramco Takes $3.6 Billion Stake in China Oil Refinery Rongsheng - Bloomberg
Saudi Aramco, the world’s biggest oil producer, has agreed to buy a 10% stake in a giant oil complex in China for 24.6 billion yuan ($3.6 billion), in a deal that will significantly expand its refining presence in China.
Aramco will also supply 480,000 barrels of crude oil per day to Rongsheng Petrochemical Co’s refinery in the eastern province of Zhejiang over a 20-year period, according to a statement from the Chinese company. Aramco will provide a credit of $800 million to Rongsheng for the purchase, that statement said. Aramco Overseas Company, a subsidiary of Aramco, will acquire the shares.
Rongsheng owns a 51% equity interest in Zhejiang Petroleum and Chemical Co., which in turn owns and operates the largest integrated refining and chemicals complex in China, with a capacity to process 800,000 barrels per day of crude oil and to produce 4.2 million metric tons of ethylene per year.
“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, said in a separate statement.
The deal comes a day after Saudi Aramco and its Chinese partners agreed to build a refining and petrochemical complex in China’s northeast, accelerating a development that was paused during the pandemic.
Saudi Aramco, the world’s biggest oil producer, has agreed to buy a 10% stake in a giant oil complex in China for 24.6 billion yuan ($3.6 billion), in a deal that will significantly expand its refining presence in China.
Aramco will also supply 480,000 barrels of crude oil per day to Rongsheng Petrochemical Co’s refinery in the eastern province of Zhejiang over a 20-year period, according to a statement from the Chinese company. Aramco will provide a credit of $800 million to Rongsheng for the purchase, that statement said. Aramco Overseas Company, a subsidiary of Aramco, will acquire the shares.
Rongsheng owns a 51% equity interest in Zhejiang Petroleum and Chemical Co., which in turn owns and operates the largest integrated refining and chemicals complex in China, with a capacity to process 800,000 barrels per day of crude oil and to produce 4.2 million metric tons of ethylene per year.
“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, said in a separate statement.
The deal comes a day after Saudi Aramco and its Chinese partners agreed to build a refining and petrochemical complex in China’s northeast, accelerating a development that was paused during the pandemic.
#AbuDhabi's Presight AI soars on market debut | Reuters
Abu Dhabi's Presight AI soars on market debut | Reuters
Shares in Abu Dhabi big data analytics company Presight AI climbed as much as 176% on their stock market debut after raising 1.82 billion dirhams ($495.6 million) in an initial public offering (IPO) for almost a third of the business.
Presight's shares rose as high as 3.70 dirhams on the Abu Dhabi Securities Exchange before retreating a little to 3.40 dirhams. The shares were priced at 1.34 dirhams for the IPO.
The company is majority owned by G42, controlled by Sheikh Tahnoon bin Zayed al-Nahyan. Sheikh Tahnoon is the UAE's national security adviser and has acted as a foreign policy troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.
Sheikh Tahnoon's financial interests include conglomerate International Holding Company (IHC.AD), which was a cornerstone investor in the Presight IPO.
He was also recently named chair of Abu Dhabi Investment Authority, the emirate's largest sovereign wealth fund, and was already chair of smaller wealth fund ADQ.
Shares in Abu Dhabi big data analytics company Presight AI climbed as much as 176% on their stock market debut after raising 1.82 billion dirhams ($495.6 million) in an initial public offering (IPO) for almost a third of the business.
Presight's shares rose as high as 3.70 dirhams on the Abu Dhabi Securities Exchange before retreating a little to 3.40 dirhams. The shares were priced at 1.34 dirhams for the IPO.
The company is majority owned by G42, controlled by Sheikh Tahnoon bin Zayed al-Nahyan. Sheikh Tahnoon is the UAE's national security adviser and has acted as a foreign policy troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.
Sheikh Tahnoon's financial interests include conglomerate International Holding Company (IHC.AD), which was a cornerstone investor in the Presight IPO.
He was also recently named chair of Abu Dhabi Investment Authority, the emirate's largest sovereign wealth fund, and was already chair of smaller wealth fund ADQ.
#UAE exchange house Al Ansari raises $210.5 million in IPO | Reuters
UAE exchange house Al Ansari raises $210.5 million in IPO | Reuters
UAE-based exchange house Al Ansari Financial Services (IPO-ALAE.DU) said on Monday it has raised 773 million dirhams ($210.5 million) at the high-end of the indicative range in an initial public offering (IPO).
The shares were priced at 1.03 dirhams apiece, Al Ansari said in a statement, adding that about 10% of the company - equivalent to 750 million shares - will list on the Dubai Financial Market on April 6.
Al Ansari Holding will hold the remaining 90%.
The UAE retail offer was oversubscribed by around 44 times, the company said.
UAE-based exchange house Al Ansari Financial Services (IPO-ALAE.DU) said on Monday it has raised 773 million dirhams ($210.5 million) at the high-end of the indicative range in an initial public offering (IPO).
The shares were priced at 1.03 dirhams apiece, Al Ansari said in a statement, adding that about 10% of the company - equivalent to 750 million shares - will list on the Dubai Financial Market on April 6.
Al Ansari Holding will hold the remaining 90%.
The UAE retail offer was oversubscribed by around 44 times, the company said.
#Qatar to introduce options, futures in new derivatives exchange - regulator | Reuters
Qatar to introduce options, futures in new derivatives exchange - regulator | Reuters
Qatar's bourse plans to introduce a new derivatives market that will allow investors to trade options and futures on local stocks and its equity index, the country's financial regulator said on Monday.
The Qatar Financial Centre Regulatory Authority (QFCRA) issued a new regulatory framework for listed derivatives after a three-month consultation with investors and market participants.
The exchange also plans to set up an entity that will provide clearing and settlement services for trades in options and derivative contracts, QFCRA said in the statement.
The technology for the central clearing counterparty will be powered by technology from the London Stock Exchange Group, the statement said.
"The launch of the derivatives exchange will be an important milestone in the development of the Qatar capital markets and Qatar's ambition to move to developed market status," Qatar stock exchange's acting chief executive Abdulaziz Al Emadi was quoted as saying.
Qatar's bourse plans to introduce a new derivatives market that will allow investors to trade options and futures on local stocks and its equity index, the country's financial regulator said on Monday.
The Qatar Financial Centre Regulatory Authority (QFCRA) issued a new regulatory framework for listed derivatives after a three-month consultation with investors and market participants.
The exchange also plans to set up an entity that will provide clearing and settlement services for trades in options and derivative contracts, QFCRA said in the statement.
The technology for the central clearing counterparty will be powered by technology from the London Stock Exchange Group, the statement said.
"The launch of the derivatives exchange will be an important milestone in the development of the Qatar capital markets and Qatar's ambition to move to developed market status," Qatar stock exchange's acting chief executive Abdulaziz Al Emadi was quoted as saying.
#Saudi banks likely to remain profitable in 2023 – A&M
Saudi banks likely to remain profitable in 2023 – A&M
Saudi Arabia’s banks are likely to remain on a profitable path in 2023 with continued credit growth, and higher interest rates resulting in migration of current and savings accounts towards term deposits.
The Saudi Central Bank (SAMA) will also continue extending tenors for its support packages and other facilities to avoid a credit crunch, according to Alvarez & Marsal’s (A&M) 2022 Saudi Arabia Banking Pulse 2022.
Higher credit demand, better asset yield and operating efficiencies drove the top Saudi lenders’ profitability in 2022 amidst rising benchmark interest rates, the bank said, with the aggregate net income increasing by 28.4% year on year (YoY) to SAR 62.7 billion ($16.7 billion).
Banks saw high credit growth during the year, with deposits inching up further on strong economic momentum and investments, pushing the loan-to-deposit ratio to 96.7%.
This can largely be attributed to demand for personal loans and real estate activities, the report said, adding that the banks’ credit growth stood at 14.4% YoY, while deposits grew by 8.3% YoY.
The growth of loans and advances (L&A) significantly outpaced that of deposits, with the total growth for the top 10 banks growing at 14.4% YoY, whereas aggregate customer deposits increased by 8.3%.
Saudi Arabia’s banks are likely to remain on a profitable path in 2023 with continued credit growth, and higher interest rates resulting in migration of current and savings accounts towards term deposits.
The Saudi Central Bank (SAMA) will also continue extending tenors for its support packages and other facilities to avoid a credit crunch, according to Alvarez & Marsal’s (A&M) 2022 Saudi Arabia Banking Pulse 2022.
Higher credit demand, better asset yield and operating efficiencies drove the top Saudi lenders’ profitability in 2022 amidst rising benchmark interest rates, the bank said, with the aggregate net income increasing by 28.4% year on year (YoY) to SAR 62.7 billion ($16.7 billion).
Banks saw high credit growth during the year, with deposits inching up further on strong economic momentum and investments, pushing the loan-to-deposit ratio to 96.7%.
This can largely be attributed to demand for personal loans and real estate activities, the report said, adding that the banks’ credit growth stood at 14.4% YoY, while deposits grew by 8.3% YoY.
The growth of loans and advances (L&A) significantly outpaced that of deposits, with the total growth for the top 10 banks growing at 14.4% YoY, whereas aggregate customer deposits increased by 8.3%.
Mideast Stocks: Gulf equities open mixed amid rising oil prices
Mideast Stocks: Gulf equities open mixed amid rising oil prices
Major Gulf markets opened mixed on Monday, mirroring gains in oil prices as investors pin their hopes on modest interest rate hikes amid governments' efforts to soothe fears over the global banking system.
Most Gulf currencies are pegged to the U.S. dollar, with Saudi Arabia, the United Arab Emirates and Qatar usually mirroring monetary policy changes in the United States.
Oil prices - a key catalyst for Gulf financial markets - rose on Monday, with Brent crude futures jumping 77 cents, or 1.03%, to $75.76 a barrel, as of 0731 GMT.
Saudi Arabia's benchmark stock index rose 0.5%, its third positive day in a row, boosted by gains in almost all sectors, led by financial and real estate stocks.
Saudi National Bank, the country's largest lender by assets, jumped 1.9% as it appointed Chief Executive Saeed Mohammed Al Ghamdi as the bank's chairman, replacing Abdul Wahed Al Khudairy.
The board also appointed Talal Ahmed Al Khereiji as acting CEO, with all changes effective March 27.
However, Sabic Agri-Nutrients, which was trading ex-dividend, recorded its sharpest intraday decline in over three years, falling more than 8%.
The Qatari Stock index edged up 0.1%, extending gains to a fourth consecutive session, as most banking stocks were trading in the positive territory.
Lender Masraf Al Rayan and index heavyweights Qatar Commercial Bank advanced 1.4% and 0.8%, respectively.
Dubai's benchmark stock index fell 0.8%, extending losses to a second consecutive session, led by a 1.2% decline in Emirates NBD Bank, UAE's largest lender, and a 0.8% dip in Dubai Islamic Bank.
Abu Dhabi's benchmark index also opened down 0.5%, its third day in the red, dragged by a 0.3% drop in conglomerate International holding Company and a 1.3% decline in Adnoc Gas.
Abu Dhabi-based data analytics company Presight AI climbed as much as 176% after raising 1.82 billion dirhams ($495.6 million) in an initial public offering.
Major Gulf markets opened mixed on Monday, mirroring gains in oil prices as investors pin their hopes on modest interest rate hikes amid governments' efforts to soothe fears over the global banking system.
Most Gulf currencies are pegged to the U.S. dollar, with Saudi Arabia, the United Arab Emirates and Qatar usually mirroring monetary policy changes in the United States.
Oil prices - a key catalyst for Gulf financial markets - rose on Monday, with Brent crude futures jumping 77 cents, or 1.03%, to $75.76 a barrel, as of 0731 GMT.
Saudi Arabia's benchmark stock index rose 0.5%, its third positive day in a row, boosted by gains in almost all sectors, led by financial and real estate stocks.
Saudi National Bank, the country's largest lender by assets, jumped 1.9% as it appointed Chief Executive Saeed Mohammed Al Ghamdi as the bank's chairman, replacing Abdul Wahed Al Khudairy.
The board also appointed Talal Ahmed Al Khereiji as acting CEO, with all changes effective March 27.
However, Sabic Agri-Nutrients, which was trading ex-dividend, recorded its sharpest intraday decline in over three years, falling more than 8%.
The Qatari Stock index edged up 0.1%, extending gains to a fourth consecutive session, as most banking stocks were trading in the positive territory.
Lender Masraf Al Rayan and index heavyweights Qatar Commercial Bank advanced 1.4% and 0.8%, respectively.
Dubai's benchmark stock index fell 0.8%, extending losses to a second consecutive session, led by a 1.2% decline in Emirates NBD Bank, UAE's largest lender, and a 0.8% dip in Dubai Islamic Bank.
Abu Dhabi's benchmark index also opened down 0.5%, its third day in the red, dragged by a 0.3% drop in conglomerate International holding Company and a 1.3% decline in Adnoc Gas.
Abu Dhabi-based data analytics company Presight AI climbed as much as 176% after raising 1.82 billion dirhams ($495.6 million) in an initial public offering.