Gautam Adani’s Abu Dhabi Backer IHC Says No Plan to Join Any New Share Sale - Bloomberg
Abu Dhabi-based International Holding Co., which has invested almost $2 billion in companies owned by Gautam Adani, doesn’t plan to take part in any potential share sales if the Indian billionaire decides to tap equity markets.
“There is no plan to take part at this point,” IHC spokesman Ahmad Ibrahim said in a statement to Bloomberg. “If anything changes, IHC will disclose the same to the market as per the governor’s rules and regulations. Our business relationship remains the same.”
Adani Enterprises Ltd., the Indian tycoon’s flagship, and at least two other group companies plan to hold board meetings on May 13 to consider raising funds via the sale of shares or other securities, just months after allegations of fraud by a short seller tipped his business empire into crisis. Three companies controlled by Adani are considering a fundraising that may draw as much as $5 billion, Bloomberg reported.
IHC, which is controlled by a key member of the emirate’s royal family, in January committed about $400 million in Adani Enterprises’ follow-on share sale which was later scrapped after a selloff triggered by Hindenburg Research’s report engulfed his group in turmoil. IHC said all of the funds were returned to the Abu Dhabi conglomerate.
Thursday, 11 May 2023
PIF-Backed ADES Oil Driller to Delay $1 Billion #Saudi IPO - Bloomberg
PIF-Backed ADES Oil Driller to Delay $1 Billion Saudi IPO - Bloomberg
ADES International Holding, the oil and gas driller backed by Saudi Arabia’s sovereign wealth fund, has delayed its planned initial public offering to the second half of the year, according to people familiar with the matter.
The company planned to start gauging demand for the offering in March, but decided to hold off until later, the people said, asking not to be identified as the information isn’t public. There isn’t now enough time to complete the deal before a long public holiday at the end of June, they said.
ADES wants to ensure the timing is right for an IPO of its size, given Middle East markets have lost some of their exuberance from last year, the people said. The deal could raise about $1 billion, Bloomberg News has reported, making it one of the bigger listings planned in the kingdom this year.
Deliberations are still ongoing and details such as timing and size could change, the people added. A representative for ADES wasn’t able to comment.
ADES International Holding, the oil and gas driller backed by Saudi Arabia’s sovereign wealth fund, has delayed its planned initial public offering to the second half of the year, according to people familiar with the matter.
The company planned to start gauging demand for the offering in March, but decided to hold off until later, the people said, asking not to be identified as the information isn’t public. There isn’t now enough time to complete the deal before a long public holiday at the end of June, they said.
ADES wants to ensure the timing is right for an IPO of its size, given Middle East markets have lost some of their exuberance from last year, the people said. The deal could raise about $1 billion, Bloomberg News has reported, making it one of the bigger listings planned in the kingdom this year.
Deliberations are still ongoing and details such as timing and size could change, the people added. A representative for ADES wasn’t able to comment.
#Dubai's Emaar Properties posts better than expected profit leap | Reuters
Dubai's Emaar Properties posts better than expected profit leap | Reuters
Emaar Properties (EMAR.DU), Dubai's biggest listed real estate company, on Thursday reported a better than expected 43% jump in first-quarter net profit on higher group property sales.
Net profit in the three months to March 31 was 3.2 billion dirhams ($871.53 million). That was more than double analyst expectations of 1.65 billion dirhams, Refinitiv data shows.
Group property sales rose 11% to 9.2 billion dirhams, "supported by an increase in tenant sales and a resurgence in tourism activity", the company said.
Emaar Properties (EMAR.DU), Dubai's biggest listed real estate company, on Thursday reported a better than expected 43% jump in first-quarter net profit on higher group property sales.
Net profit in the three months to March 31 was 3.2 billion dirhams ($871.53 million). That was more than double analyst expectations of 1.65 billion dirhams, Refinitiv data shows.
Group property sales rose 11% to 9.2 billion dirhams, "supported by an increase in tenant sales and a resurgence in tourism activity", the company said.
Earnings boost #Saudi index; oil weighs on other markets | Reuters
Earnings boost Saudi index; oil weighs on other markets | Reuters
Saudi Arabia's stock market ended higher on Thursday after a set of strong earnings from major firms, while most other markets were in negative territory as oil prices turned red.
Saudi Arabia's benchmark index (.TASI) finished 0.9% higher, buoyed by a 4.1% rise in Riyad Bank (1010.SE) while Etihad Etisalat Company (7020.SE) jumped 4.5%.
The telecom firm reported quarterly net profit after zakat and tax 465 million riyals ($124 million), up from 319 million riyals year ago.
Elsewhere, Savola Group (2050.SE) concluded 4.7% higher, following a rise in quarterly earnings.
The main index could maintain its uptrend and extend gains in particular if oil prices are able to rebound more strongly, said Ahmed Negm, Head of Market Research MENA at XS.com.
Dubai's main share index (.DFMGI) eased 0.1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) retreating 1.1%.
In Abu Dhabi, the index (.FTFADGI) closed 0.6% lower, with conglomerate International Holding (IHC.AD) losing 0.3% as the firm is slated to report its first-quarter earnings.
Oil prices - a key catalyst for the Gulf's financial markets - erased earlier gains during U.S. trading hours as a political standoff about the U.S. debt ceiling overshadowed a G7 finance leaders' meeting, raising jitters about a possible recession in the world's biggest oil consumer.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 1.3%, as most of the stocks on the index were in neagtive territory including top lender Commercial international Bank (COMI.CA), which was down 1.1%.
The Egyptian bourse slid as it failed to move beyond this year's peak, said Negm.
"At the same time, international investors continue their selling trend in the face of a potential pound devaluation in the medium term and as the country is faced with a possible deterioration in credit rating."
Saudi Arabia's stock market ended higher on Thursday after a set of strong earnings from major firms, while most other markets were in negative territory as oil prices turned red.
Saudi Arabia's benchmark index (.TASI) finished 0.9% higher, buoyed by a 4.1% rise in Riyad Bank (1010.SE) while Etihad Etisalat Company (7020.SE) jumped 4.5%.
The telecom firm reported quarterly net profit after zakat and tax 465 million riyals ($124 million), up from 319 million riyals year ago.
Elsewhere, Savola Group (2050.SE) concluded 4.7% higher, following a rise in quarterly earnings.
The main index could maintain its uptrend and extend gains in particular if oil prices are able to rebound more strongly, said Ahmed Negm, Head of Market Research MENA at XS.com.
Dubai's main share index (.DFMGI) eased 0.1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU) retreating 1.1%.
In Abu Dhabi, the index (.FTFADGI) closed 0.6% lower, with conglomerate International Holding (IHC.AD) losing 0.3% as the firm is slated to report its first-quarter earnings.
Oil prices - a key catalyst for the Gulf's financial markets - erased earlier gains during U.S. trading hours as a political standoff about the U.S. debt ceiling overshadowed a G7 finance leaders' meeting, raising jitters about a possible recession in the world's biggest oil consumer.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 1.3%, as most of the stocks on the index were in neagtive territory including top lender Commercial international Bank (COMI.CA), which was down 1.1%.
The Egyptian bourse slid as it failed to move beyond this year's peak, said Negm.
"At the same time, international investors continue their selling trend in the face of a potential pound devaluation in the medium term and as the country is faced with a possible deterioration in credit rating."
Bain, #AbuDhabi Buy Stake in CI Financial’s US Wealth Unit - Bloomberg
Bain, Abu Dhabi Buy Stake in CI Financial’s US Wealth Unit - Bloomberg
Canadian asset manager CI Financial Corp. is selling a 20% stake in its US wealth management unit to a group of investors including Bain Capital and Abu Dhabi Investment Authority.
The $1 billion investment gives the business an enterprise value of about $5.3 billion, CI said in a statement Thursday. The deal was reported first by the Wall Street Journal.
For CI, the transaction means immediate financial relief, allowing the firm to pay down some of the debt it accumulated when it acquired dozens of wealth management offices across the US. It immediately announced an offer to repurchase bonds due in 2024, 2025 and 2027.
The Canadian financial firm announced plans last year to take the US division public, but has shelved the IPO for now.
“We capitalized on an opportunity to accomplish in the private markets the objectives we sought in the IPO – value creation for our shareholders, an infusion of capital to materially deleverage, and the opportunity to build relationships with leading long-term investors,” CI Chief Executive Officer Kurt MacAlpine said in the statement.
CI’s net leverage ratio will fall to 2.7 times from 4 times, the company said. The firm’s stock market value, including both its US business and its profitable Canadian fund management arm, was just C$2.3 billion ($1.7 billion) as of Wednesday’s close. The company has been buying back shares, but executives have been frustrated at its low valuation as the market has grown more concerned about the debt.
“The CI board is thrilled by the outcome of this transaction, which creates substantial value for our shareholders and represents an attractive alternative to an IPO of CI US,” Chairman Bill Holland said in a statement. “We have retained majority ownership of CI US while partnering with world-class investors and adding new directors at CI US.”
Canadian asset manager CI Financial Corp. is selling a 20% stake in its US wealth management unit to a group of investors including Bain Capital and Abu Dhabi Investment Authority.
The $1 billion investment gives the business an enterprise value of about $5.3 billion, CI said in a statement Thursday. The deal was reported first by the Wall Street Journal.
For CI, the transaction means immediate financial relief, allowing the firm to pay down some of the debt it accumulated when it acquired dozens of wealth management offices across the US. It immediately announced an offer to repurchase bonds due in 2024, 2025 and 2027.
The Canadian financial firm announced plans last year to take the US division public, but has shelved the IPO for now.
“We capitalized on an opportunity to accomplish in the private markets the objectives we sought in the IPO – value creation for our shareholders, an infusion of capital to materially deleverage, and the opportunity to build relationships with leading long-term investors,” CI Chief Executive Officer Kurt MacAlpine said in the statement.
CI’s net leverage ratio will fall to 2.7 times from 4 times, the company said. The firm’s stock market value, including both its US business and its profitable Canadian fund management arm, was just C$2.3 billion ($1.7 billion) as of Wednesday’s close. The company has been buying back shares, but executives have been frustrated at its low valuation as the market has grown more concerned about the debt.
“The CI board is thrilled by the outcome of this transaction, which creates substantial value for our shareholders and represents an attractive alternative to an IPO of CI US,” Chairman Bill Holland said in a statement. “We have retained majority ownership of CI US while partnering with world-class investors and adding new directors at CI US.”
#Saudi Aramco to Postpone Mega IPO of Energy Trading Unit - Bloomberg
Saudi Aramco to Postpone Mega IPO of Energy Trading Unit - Bloomberg
Saudi Aramco is pushing back a planned Riyadh initial public offering of its energy-trading business, a deal that would have ranked as one of the world’s largest share sales this year, people with knowledge of the matter said.
The state-controlled oil company has significantly slowed down preparatory work on the deal in recent months, according to the people, who asked not to be identified because the information is private. It hasn’t set a new timeline for the listing, which may be postponed until next year unless the market improves, one of the people said.
Aramco had been planning to list the business in late 2022 or early this year and was considering seeking a valuation of more than $30 billion, Bloomberg News reported previously. It now feels it could be difficult to list such a large business on the Riyadh bourse at the moment, the people said.
The Saudi firm also wants to take more time to complete the integration of its main trading unit with the trading arm of its US refining business Motiva Enterprises LLC before proceeding with the IPO, the people said.
Saudi Aramco is pushing back a planned Riyadh initial public offering of its energy-trading business, a deal that would have ranked as one of the world’s largest share sales this year, people with knowledge of the matter said.
The state-controlled oil company has significantly slowed down preparatory work on the deal in recent months, according to the people, who asked not to be identified because the information is private. It hasn’t set a new timeline for the listing, which may be postponed until next year unless the market improves, one of the people said.
Aramco had been planning to list the business in late 2022 or early this year and was considering seeking a valuation of more than $30 billion, Bloomberg News reported previously. It now feels it could be difficult to list such a large business on the Riyadh bourse at the moment, the people said.
The Saudi firm also wants to take more time to complete the integration of its main trading unit with the trading arm of its US refining business Motiva Enterprises LLC before proceeding with the IPO, the people said.
Most Gulf markets in red; oil lifts #Saudi | Reuters
Most Gulf markets in red; oil lifts Saudi | Reuters
Most major stock markets in the Gulf fell in early trade on Thursday tracking Asian shares lower, although the Saudi index was supported by positive earnings and rising oil prices.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.1%, as investors fretted about growing deflationary pressures in China and a mixed bag of Japanese earnings, while a standoff over the U.S. debt ceiling overshadowed a meeting of G7 finance leaders.
Dubai's main share index (.DFMGI) dropped 0.7%, hit by a 1.2% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decline in Emirates NBD Bank (ENBD.DU).
Elsewhere, logistics firm Aramex (ARMX.DU) retreated 2.2%, after posting a steep fall in quarterly profit.
In Abu Dhabi, the index (.FTFADGI) lost 0.6%, weighed down by a 0.8% decrease in Emirates telecoms group Etisalat (EAND.AD), also known as e&.
Vodafone Group (VOD.L) said on Thursday the chief executive of its largest shareholder, e&, would join its board as the two companies agreed to deepen their strategic relationship.
Separately, Abu Dhabi oil giant ADNOC intends to offer 15% of its shares in unit ADNOC Logistics & Services (ADNOC L&S) through an initial public offering (IPO) on the Abu Dhabi stock exchange, the company said on Wednesday.
The Qatari benchmark (.QSI) was down 0.3%, hit by a 0.7% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Saudi Arabia's benchmark index (.TASI) rose 0.2%, with Riyad Bank (1010.SE) advancing 2.4% and petrochemical maker Saudi Basic Industries Corp (2010.SE) putting on 1.4%.
Among other gainers, Savola Group (2050.SE) jumped more than 6%, its biggest intraday gain in three years, after reporting a sharp rise in first-quarter profit.
Oil prices - a key catalyst for the Gulf's financial markets - bounced back after dropping by more than a dollar per barrel the previous day, supported by stronger fuel demand data from the United States, the world's top oil consumer.
Most major stock markets in the Gulf fell in early trade on Thursday tracking Asian shares lower, although the Saudi index was supported by positive earnings and rising oil prices.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.1%, as investors fretted about growing deflationary pressures in China and a mixed bag of Japanese earnings, while a standoff over the U.S. debt ceiling overshadowed a meeting of G7 finance leaders.
Dubai's main share index (.DFMGI) dropped 0.7%, hit by a 1.2% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.1% decline in Emirates NBD Bank (ENBD.DU).
Elsewhere, logistics firm Aramex (ARMX.DU) retreated 2.2%, after posting a steep fall in quarterly profit.
In Abu Dhabi, the index (.FTFADGI) lost 0.6%, weighed down by a 0.8% decrease in Emirates telecoms group Etisalat (EAND.AD), also known as e&.
Vodafone Group (VOD.L) said on Thursday the chief executive of its largest shareholder, e&, would join its board as the two companies agreed to deepen their strategic relationship.
Separately, Abu Dhabi oil giant ADNOC intends to offer 15% of its shares in unit ADNOC Logistics & Services (ADNOC L&S) through an initial public offering (IPO) on the Abu Dhabi stock exchange, the company said on Wednesday.
The Qatari benchmark (.QSI) was down 0.3%, hit by a 0.7% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Saudi Arabia's benchmark index (.TASI) rose 0.2%, with Riyad Bank (1010.SE) advancing 2.4% and petrochemical maker Saudi Basic Industries Corp (2010.SE) putting on 1.4%.
Among other gainers, Savola Group (2050.SE) jumped more than 6%, its biggest intraday gain in three years, after reporting a sharp rise in first-quarter profit.
Oil prices - a key catalyst for the Gulf's financial markets - bounced back after dropping by more than a dollar per barrel the previous day, supported by stronger fuel demand data from the United States, the world's top oil consumer.
#AbuDhabi’s Al Maskari Family Plans Middle East’s Second SPAC Listing - Bloomberg
Abu Dhabi’s Al Maskari Family Plans Middle East’s Second SPAC Listing - Bloomberg
An investment firm backed by Abu Dhabi’s Al Maskari family is planning to list a blank-check firm in the city, people familiar with the matter said, in what would be the second such deal in the Middle East.
MEASA Partners is targeting a listing for the special purpose acquisition company this year, the people said, asking not to be identified as the information isn’t public. It’s working with Abu Dhabi Commercial Bank PJSC and Credit Suisse Group AG on the potential listing, they said.
Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Co. and Alpha Wave Global, is expected to anchor the transaction, the people said. Details of the offer such as its size and timeline are still preliminary and subject to change, while more banks may be added at a later stage, they said.
Representatives for MEASA Partners, Mubadala, Abu Dhabi Catalyst Partners, Credit Suisse and ADCB declined to comment.
An investment firm backed by Abu Dhabi’s Al Maskari family is planning to list a blank-check firm in the city, people familiar with the matter said, in what would be the second such deal in the Middle East.
MEASA Partners is targeting a listing for the special purpose acquisition company this year, the people said, asking not to be identified as the information isn’t public. It’s working with Abu Dhabi Commercial Bank PJSC and Credit Suisse Group AG on the potential listing, they said.
Abu Dhabi Catalyst Partners, a joint venture between Mubadala Investment Co. and Alpha Wave Global, is expected to anchor the transaction, the people said. Details of the offer such as its size and timeline are still preliminary and subject to change, while more banks may be added at a later stage, they said.
Representatives for MEASA Partners, Mubadala, Abu Dhabi Catalyst Partners, Credit Suisse and ADCB declined to comment.
ADNOC Gas reports higher Q1 profit as lower costs offset weak volumes | Reuters
ADNOC Gas reports higher Q1 profit as lower costs offset weak volumes | Reuters
Abu Dhabi National Oil Company's gas subsidiary reported higher first quarter profit on Thursday, as lower prices and volumes at the gas unit were offset by lower cost of raw gas supply, the company said.
ADNOC Gas (ADNOCGAS.AD), which debuted with a March IPO that raised $2.5 billion, reported a net income of $1.3 billion for the first quarter ended March 31, up 9% from the year earlier, on a pro forma adjusted basis.
The company, which is targeting to pay a dividend of $1.625 billion in the fourth quarter of 2023, said net income for the reported quarter included a one-time tax benefit of $300 million.
Revenue fell 15% year-on-year to $6.2 billion.
Abu Dhabi National Oil Company's gas subsidiary reported higher first quarter profit on Thursday, as lower prices and volumes at the gas unit were offset by lower cost of raw gas supply, the company said.
ADNOC Gas (ADNOCGAS.AD), which debuted with a March IPO that raised $2.5 billion, reported a net income of $1.3 billion for the first quarter ended March 31, up 9% from the year earlier, on a pro forma adjusted basis.
The company, which is targeting to pay a dividend of $1.625 billion in the fourth quarter of 2023, said net income for the reported quarter included a one-time tax benefit of $300 million.
Revenue fell 15% year-on-year to $6.2 billion.
Emirates airline reports record $3 billion annual profit | Reuters
Emirates airline reports record $3 billion annual profit | Reuters
Dubai's Emirates airline on Thursday said financial year 2022-23 had been its most profitable so far, reporting an annual profit of 10.9 billion dirhams ($3 billion) and a group revenue increase of 81%.
The state-owned carrier had posted an annual loss of $1.1 billion for 2021-22, following a $5.5 billion loss the year before that.
The airline had made a "full recovery" since the hit to demand caused by the pandemic, Chairman and Chief Executive Officer Sheikh Ahmed bin Saeed Al Maktoum said.
"As the last travel restrictions lifted and triggered a tide of demand, we were ready to expand our operations quickly," he said.
The state-owned airline said it filled 79.5% of seats flown, up from 58.6% a year earlier, and was now flying to 150 destinations from more than 140 last year.
Emirates also said it had committed $200 million to a research fund focusing on reducing the impact of fossil fuels in commercial aviation, because hitting net zero emissions targets would not be possible with currently available options.
Dubai's Emirates airline on Thursday said financial year 2022-23 had been its most profitable so far, reporting an annual profit of 10.9 billion dirhams ($3 billion) and a group revenue increase of 81%.
The state-owned carrier had posted an annual loss of $1.1 billion for 2021-22, following a $5.5 billion loss the year before that.
The airline had made a "full recovery" since the hit to demand caused by the pandemic, Chairman and Chief Executive Officer Sheikh Ahmed bin Saeed Al Maktoum said.
"As the last travel restrictions lifted and triggered a tide of demand, we were ready to expand our operations quickly," he said.
The state-owned airline said it filled 79.5% of seats flown, up from 58.6% a year earlier, and was now flying to 150 destinations from more than 140 last year.
Emirates also said it had committed $200 million to a research fund focusing on reducing the impact of fossil fuels in commercial aviation, because hitting net zero emissions targets would not be possible with currently available options.
Lucid losses put #SaudiArabia's EV strategy in the headlamps | Reuters
Lucid losses put Saudi Arabia's EV strategy in the headlamps | Reuters
Lucid's electric vehicles are often displayed prominently at public events and financial conferences in Saudi Arabia to symbolise its crown prince's multi-billion dollar "Vision 2030".
The electric car maker is among the biggest U.S. investments by Saudi Arabia's Public Investment Fund (PIF) which has been tasked with driving the kingdom's ambitious plan to cut its reliance on oil revenue.
For PIF, the Lucid (LCID.O) bet is proving challenging.
The U.S. company, in which PIF owns a 60.46% stake, fell well short of analyst forecasts on Tuesday with a sharp first quarter revenue fall and a cut to its 2023 production outlook.
That performance could put another potential dent in Saudi plans to build its own EV industry, which includes Lucid's first manufacturing plant outside the U.S., as part of its far-reaching diversification plan led by Crown Prince Mohammed bin Salman.
Prince Mohammed is also chairman of PIF, the $620 billion fund which is expected to contribute 1.2 trillion riyals ($320 billion) to non-oil GDP through its portfolio companies and create 1.8 million new jobs between 2021 and 2025.
Lucid's electric vehicles are often displayed prominently at public events and financial conferences in Saudi Arabia to symbolise its crown prince's multi-billion dollar "Vision 2030".
The electric car maker is among the biggest U.S. investments by Saudi Arabia's Public Investment Fund (PIF) which has been tasked with driving the kingdom's ambitious plan to cut its reliance on oil revenue.
For PIF, the Lucid (LCID.O) bet is proving challenging.
The U.S. company, in which PIF owns a 60.46% stake, fell well short of analyst forecasts on Tuesday with a sharp first quarter revenue fall and a cut to its 2023 production outlook.
That performance could put another potential dent in Saudi plans to build its own EV industry, which includes Lucid's first manufacturing plant outside the U.S., as part of its far-reaching diversification plan led by Crown Prince Mohammed bin Salman.
Prince Mohammed is also chairman of PIF, the $620 billion fund which is expected to contribute 1.2 trillion riyals ($320 billion) to non-oil GDP through its portfolio companies and create 1.8 million new jobs between 2021 and 2025.