Citigroup Resumes Work on Investcorp Capital’s Abu Dhabi IPO - Bloomberg
Citigroup Inc. has returned to working on Investcorp Capital Plc’s initial public offering in Abu Dhabi, after it earlier had to stop that work because it couldn’t get internal approval to participate in the sale, according to people familiar with the matter.
The move comes just weeks after Citigroup, along with rival Goldman Sachs Group Inc., had to stop its work on the IPO after the Abu Dhabi bourse had requested that the IPO have a price stabilization mechanism once the stock start trading.
When Citigroup and Goldman originally stopped their work on the deal, none of the lead banks wanted to take on the role of a price stabilization agent as such a mechanism remains in gray area under UAE law. Another broker was brought on to do it.
Representatives for Citigroup and Investcorp declined to comment.
Emirates NBD Capital, First Abu Dhabi Bank PJSC and HSBC Holdings Plc are working on the IPO as joint global coordinators.
Investcorp Capital Plc and Investcorp Holdings, its parent, are seeking to raise as much as 1.49 billion dirhams ($403 million) in the IPO. The offering was covered across the price range on the first day of bookbuilding, with about $250 million being taken up by a special purpose vehicle as a cornerstone investor.
Investcorp Capital invests in private equity, real estate, credit and general partner positions in North America, Europe, the Middle East and Asia.
Monday, 6 November 2023
#AbuDhabi's Adnoc, OMV Move Closer to Forming €30 Billion Chemical Giant - Bloomberg
Abu Dhabi's Adnoc, OMV Move Closer to Forming €30 Billion Chemical Giant - Bloomberg
Abu Dhabi National Oil Co. and Austria’s OMV AG are putting the final touches on a deal to create a petrochemical firm worth more than €30 billion ($32 billion), according to people with knowledge of the matter.
Officials may reach a breakthrough as soon as mid-November, when the two sides will meet to discuss details of the planned merger of Abu Dhabi-listed Borouge Plc with Borealis AG, the people said. They’re aiming to reach an agreement before year-end on the proposal, which could see Adnoc and OMV each hold 47% of the combined entity, the people said. That would leave 6% as free float.
OMV owns 75% of Borealis, with the remainder held by Adnoc, while Borouge is a partnership between Adnoc and Borealis. The deal could value Borealis at just above €10 billion while Borouge may be valued at nearly €20 billion, in line with its current market value, the people said.
The latest proposal envisions OMV injecting about €1.7 billion of cash into the joint company to ensure its stake is equal to Adnoc’s, they said. The parties are still negotiating the combined firm’s listing venue and headquarters location.
Abu Dhabi National Oil Co. and Austria’s OMV AG are putting the final touches on a deal to create a petrochemical firm worth more than €30 billion ($32 billion), according to people with knowledge of the matter.
Officials may reach a breakthrough as soon as mid-November, when the two sides will meet to discuss details of the planned merger of Abu Dhabi-listed Borouge Plc with Borealis AG, the people said. They’re aiming to reach an agreement before year-end on the proposal, which could see Adnoc and OMV each hold 47% of the combined entity, the people said. That would leave 6% as free float.
OMV owns 75% of Borealis, with the remainder held by Adnoc, while Borouge is a partnership between Adnoc and Borealis. The deal could value Borealis at just above €10 billion while Borouge may be valued at nearly €20 billion, in line with its current market value, the people said.
The latest proposal envisions OMV injecting about €1.7 billion of cash into the joint company to ensure its stake is equal to Adnoc’s, they said. The parties are still negotiating the combined firm’s listing venue and headquarters location.
#Dubai ruler approves 246.6 billion dirham budget for 2024-2026 | Reuters
Dubai ruler approves 246.6 billion dirham budget for 2024-2026 | Reuters
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum approved a budget of 246.6 billion dirham ($67.14 billion) for the emirate's government in 2024-2026, the Dubai media office said on Monday.
Expenditure for the fiscal year 2024 alone is estimated at 79.1 billion dirham, and public revenues at 90.6 billion dirham, the media office added.
Of the estimated revenues, 85.1 billion dirham would be allocated to the budget, and the remaining 5.5 billion dirham would go to the general reserve, it said.
"The Department of Finance expects to achieve an operating surplus of up to 3.3% of Dubai’s GDP, during the 2024-2026 financial plan, in order to establish the foundations of the emirate’s financial sustainability," the media office quoted the department's director general, Saleh Al Saleh, as saying.
The emirate's government was committed to disciplined financial policies, Al Saleh said, adding that had led to the establishment of a general reserve from annual revenues that should reach around 20.6 billion dirham for the three years 2024-2026.
Dubai, one of the seven emirates that constitute the oil-rich United Arab Emirates, is widely regarded as the trade and tourism hub of the Gulf region.
Dubai's ruler Sheikh Mohammed bin Rashid al-Maktoum approved a budget of 246.6 billion dirham ($67.14 billion) for the emirate's government in 2024-2026, the Dubai media office said on Monday.
Expenditure for the fiscal year 2024 alone is estimated at 79.1 billion dirham, and public revenues at 90.6 billion dirham, the media office added.
Of the estimated revenues, 85.1 billion dirham would be allocated to the budget, and the remaining 5.5 billion dirham would go to the general reserve, it said.
"The Department of Finance expects to achieve an operating surplus of up to 3.3% of Dubai’s GDP, during the 2024-2026 financial plan, in order to establish the foundations of the emirate’s financial sustainability," the media office quoted the department's director general, Saleh Al Saleh, as saying.
The emirate's government was committed to disciplined financial policies, Al Saleh said, adding that had led to the establishment of a general reserve from annual revenues that should reach around 20.6 billion dirham for the three years 2024-2026.
Dubai, one of the seven emirates that constitute the oil-rich United Arab Emirates, is widely regarded as the trade and tourism hub of the Gulf region.
Riyadh Air to announce narrowbody plane order in coming weeks - CEO | Reuters
Riyadh Air to announce narrowbody plane order in coming weeks - CEO | Reuters
Riyadh Air will announce a deal to buy a "sizeable" number of narrowbody aircraft in the coming weeks, the startup airline's chief executive said, as he helps build a second carrier for Saudi Arabia which is set for take-off in 2025.
Former Etihad Airways boss Tony Douglas was hired in March to head up Riyadh Air, owned by Saudi Arabia's Public Investment Fund. With 72 Boeing 787 widebody jets already provisionally ordered, Douglas said narrowbodies were next.
"We have concluded our narrowbody campaign," he said in an interview in London on Monday. "I think we will probably be announcing it within the coming weeks."
There is speculation an announcement could come at the Dubai Air Show from Nov. 13-17.
Douglas declined to say how many jets Riyadh Air would buy, but called the order "sizeable" and said the deal would be "a very, very clear signal of intent".
Riyadh Air will announce a deal to buy a "sizeable" number of narrowbody aircraft in the coming weeks, the startup airline's chief executive said, as he helps build a second carrier for Saudi Arabia which is set for take-off in 2025.
Former Etihad Airways boss Tony Douglas was hired in March to head up Riyadh Air, owned by Saudi Arabia's Public Investment Fund. With 72 Boeing 787 widebody jets already provisionally ordered, Douglas said narrowbodies were next.
"We have concluded our narrowbody campaign," he said in an interview in London on Monday. "I think we will probably be announcing it within the coming weeks."
There is speculation an announcement could come at the Dubai Air Show from Nov. 13-17.
Douglas declined to say how many jets Riyadh Air would buy, but called the order "sizeable" and said the deal would be "a very, very clear signal of intent".
Most Gulf bourses rise as investors bet Fed done hiking rates | Reuters
Most Gulf bourses rise as investors bet Fed done hiking rates | Reuters
Most stock markets in the Gulf ended higher on Monday after U.S. jobs data bolstered expectations that the Federal Reserve will not hike interest rates further.
Battered bond markets have recovered as a benign U.S. payrolls report and upbeat productivity numbers suggested the labour market was cooling enough to obviate the need for further rate increases from the Fed.
The U.S. central bank held its interest rate steady on Nov. 1, spurring a global market rally while triggering a drop in the U.S. dollar and Treasury yields.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index (.TASI) edged 0.1% higher, helped by a 6.7% jump in Etihad Atheeb Telecommunication Co (7040.SE).
Among other gainers, oil behemoth Saudi Aramco (2222.SE) added 0.5%, ahead of the earnings announcement on Tuesday.
Oil prices - a catalyst for the Gulf's financial markets - rose after top exporters Saudi Arabia and Russia reaffirmed their commitment to extra voluntary oil supply cuts until the end of the year.
Dubai's main share index (.DFMGI) rose 0.7%, led by a 1.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 2.4% increase in Dubai Islamic Bank (DISB.DU).
The Dubai bourse extended its rebound with sentiment improving after monetary policy expectations softened, said Muhannad Al-Teneiji, founder of Wealth Training Center and of Matrix for AI Applications.
"The market could continue to see improvements thanks to strong local fundamentals despite the remaining geopolitical tensions in the region."
The Abu Dhabi index (.FTFADGI) finished 0.4% higher.
In Qatar, the index (.QSI) advanced 1.6%, rising for a seventh straight session, with most of its constituents in positive territory, including Islamic lender Masraf Al Rayan (MARK.QA), which gained 10%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.2%, ending two sessions of gains, hit by an 8.3% fall in Alexandria Mineral Oils Co (AMOC.CA).
Most stock markets in the Gulf ended higher on Monday after U.S. jobs data bolstered expectations that the Federal Reserve will not hike interest rates further.
Battered bond markets have recovered as a benign U.S. payrolls report and upbeat productivity numbers suggested the labour market was cooling enough to obviate the need for further rate increases from the Fed.
The U.S. central bank held its interest rate steady on Nov. 1, spurring a global market rally while triggering a drop in the U.S. dollar and Treasury yields.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index (.TASI) edged 0.1% higher, helped by a 6.7% jump in Etihad Atheeb Telecommunication Co (7040.SE).
Among other gainers, oil behemoth Saudi Aramco (2222.SE) added 0.5%, ahead of the earnings announcement on Tuesday.
Oil prices - a catalyst for the Gulf's financial markets - rose after top exporters Saudi Arabia and Russia reaffirmed their commitment to extra voluntary oil supply cuts until the end of the year.
Dubai's main share index (.DFMGI) rose 0.7%, led by a 1.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 2.4% increase in Dubai Islamic Bank (DISB.DU).
The Dubai bourse extended its rebound with sentiment improving after monetary policy expectations softened, said Muhannad Al-Teneiji, founder of Wealth Training Center and of Matrix for AI Applications.
"The market could continue to see improvements thanks to strong local fundamentals despite the remaining geopolitical tensions in the region."
The Abu Dhabi index (.FTFADGI) finished 0.4% higher.
In Qatar, the index (.QSI) advanced 1.6%, rising for a seventh straight session, with most of its constituents in positive territory, including Islamic lender Masraf Al Rayan (MARK.QA), which gained 10%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) eased 0.2%, ending two sessions of gains, hit by an 8.3% fall in Alexandria Mineral Oils Co (AMOC.CA).
Emirates Considers New Planes, Conversions for Air Cargo Expansion - Bloomberg
Emirates Considers New Planes, Conversions for Air Cargo Expansion - Bloomberg
Emirates is considering an order for Boeing Co. or Airbus SE freighters and may convert more passenger jets to expand its cargo fleet.
The carrier, which aims to double freight capacity in the next decade, hasn’t decided between Boeing 777-8 freighters and Airbus 350Fs, and could take another four years to commit to either, Emirates’ cargo chief Nabil Sultan said. The airline’s cargo fleet is currently all Boeing. Some of its more than 100 Boeing 777 passenger planes could be converted for cargo use too.
The company “will evaluate, hopefully by 2027, whether we require a different mix to what we have already,” Sultan, divisional senior vice president of Emirates SkyCargo, said in an interview at an industry conference in Singapore.
While cargo yields have fallen from their Covid peak, they remain 20% above pre-pandemic levels. Demand is also increasing in the lead up to Christmas.
“We’re probably at a much more stable stage now,” Sultan told Bloomberg News. “We’ve passed the bottoming out. We’ve seen consistent growth.”
Emirates is considering an order for Boeing Co. or Airbus SE freighters and may convert more passenger jets to expand its cargo fleet.
The carrier, which aims to double freight capacity in the next decade, hasn’t decided between Boeing 777-8 freighters and Airbus 350Fs, and could take another four years to commit to either, Emirates’ cargo chief Nabil Sultan said. The airline’s cargo fleet is currently all Boeing. Some of its more than 100 Boeing 777 passenger planes could be converted for cargo use too.
The company “will evaluate, hopefully by 2027, whether we require a different mix to what we have already,” Sultan, divisional senior vice president of Emirates SkyCargo, said in an interview at an industry conference in Singapore.
While cargo yields have fallen from their Covid peak, they remain 20% above pre-pandemic levels. Demand is also increasing in the lead up to Christmas.
“We’re probably at a much more stable stage now,” Sultan told Bloomberg News. “We’ve passed the bottoming out. We’ve seen consistent growth.”
Oil Advances After #SaudiArabia and Russia Reaffirm Supply Cuts
Oil Advances After Saudi Arabia and Russia Reaffirm Supply Cuts
Oil gained after Saudi Arabia and Russia reaffirmed they will stick with oil supply curbs of more than 1 million barrels a day through the end of the year.
Global benchmark Brent crude rose above $86 a barrel. The announcement by the OPEC+ heavyweights on Sunday comes after the fading Israel-Hamas war premium and concerns over weaker global demand pushed oil prices down by more than 6% last week. The dollar also dropped, making commodities priced in the currency more appealing.
Crude surged after the Hamas attack on Israel on Oct. 7, but those gains have now been almost entirely unwound as the war has remained contained and not disrupted supplies from the Middle East, the source of around a third of the world’s oil.
While there’s still a chance the conflict could spread across the region, the impact on prices has given way to fresh concerns about a slowing global economy. A surprise contraction in Chinese manufacturing last month has raised questions about the recovery in the world’s biggest oil importer, while US stockpiles are growing.
“We believe these voluntary supply cuts are likely to be extended into the first quarter of 2024 — given seasonally weaker oil demand at the start of every year, ongoing economic growth concerns, and the aim of producers and OPEC+ to support the oil market’s stability and balance,” said Giovanni Staunovo, a commodity analyst at UBS Group AG.
Saudi Aramco, meanwhile, kept its December official selling prices for two of five oil grades unchanged to Asian customers. However, the kingdom slashed its prices for Europe, a further sign of the concern over consumption in the region.
Oil gained after Saudi Arabia and Russia reaffirmed they will stick with oil supply curbs of more than 1 million barrels a day through the end of the year.
Global benchmark Brent crude rose above $86 a barrel. The announcement by the OPEC+ heavyweights on Sunday comes after the fading Israel-Hamas war premium and concerns over weaker global demand pushed oil prices down by more than 6% last week. The dollar also dropped, making commodities priced in the currency more appealing.
Crude surged after the Hamas attack on Israel on Oct. 7, but those gains have now been almost entirely unwound as the war has remained contained and not disrupted supplies from the Middle East, the source of around a third of the world’s oil.
While there’s still a chance the conflict could spread across the region, the impact on prices has given way to fresh concerns about a slowing global economy. A surprise contraction in Chinese manufacturing last month has raised questions about the recovery in the world’s biggest oil importer, while US stockpiles are growing.
“We believe these voluntary supply cuts are likely to be extended into the first quarter of 2024 — given seasonally weaker oil demand at the start of every year, ongoing economic growth concerns, and the aim of producers and OPEC+ to support the oil market’s stability and balance,” said Giovanni Staunovo, a commodity analyst at UBS Group AG.
Saudi Aramco, meanwhile, kept its December official selling prices for two of five oil grades unchanged to Asian customers. However, the kingdom slashed its prices for Europe, a further sign of the concern over consumption in the region.
#Kuwait Petroleum will borrow to close $45 bln gap in 5-year spending plan | Reuters
Kuwait Petroleum will borrow to close $45 bln gap in 5-year spending plan | Reuters
State oil giant Kuwait Petroleum Corporation sees a near 14.1 billion Kuwaiti dinar ($45.7 billion) shortfall in the funds it has available to meet its five-year spending plan, and will need to borrow and sell assets to help plug the gap, a document seen by Reuters showed.
Retaining its annual dividends instead of transferring them to the state budget is "inevitable" during the five years to March 31, 2027, the period of the plan, KPC Chairman Saad Al Barrak said.
The company is planning capital expenditure of 22.05 billion dinars in that time, including about 13.9 billion dinars for exploration and production, Al Barrak said in the Oct. 30 document, a response to a parliamentary query.
"Only keeping dividends will not be enough to cover the expected deficit of about 14 billion Kuwaiti dinars, so the corporation will also borrow and implement some (other) initiatives," Al Barrak, who is also oil minister, said.
State oil giant Kuwait Petroleum Corporation sees a near 14.1 billion Kuwaiti dinar ($45.7 billion) shortfall in the funds it has available to meet its five-year spending plan, and will need to borrow and sell assets to help plug the gap, a document seen by Reuters showed.
Retaining its annual dividends instead of transferring them to the state budget is "inevitable" during the five years to March 31, 2027, the period of the plan, KPC Chairman Saad Al Barrak said.
The company is planning capital expenditure of 22.05 billion dinars in that time, including about 13.9 billion dinars for exploration and production, Al Barrak said in the Oct. 30 document, a response to a parliamentary query.
"Only keeping dividends will not be enough to cover the expected deficit of about 14 billion Kuwaiti dinars, so the corporation will also borrow and implement some (other) initiatives," Al Barrak, who is also oil minister, said.
Key markets gain on hopes of early Fed rate cuts | Reuters
Key markets gain on hopes of early Fed rate cuts | Reuters
Most major stock markets in the Gulf rose in early trade on Monday after softer-than-expected U.S. jobs data reinforced expectations that the Federal Reserve will not hike interest rates further.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
U.S. job growth slowed in October in part as auto union strikes depressed manufacturing payrolls; the increase in annual wages was the smallest in nearly 2-1/2 years.
Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by 1.3% rise in Lumi Rental Co (4262.SE).
However, oil giant Saudi Aramco (2222.SE) eased 0.2%, ahead of earnings announcement on Tuesday.
Saudi Arabia confirmed it would continue with its additional voluntary cut of 1 million barrels per day (bpd) in December to keep output at around 9 million bpd, a source at the ministry of energy said in a statement. The Saudi decision was in line with analysts' expectations.
Dubai's main share index (.DFMGI) gained 0.5%, with shariacompliant lender Dubai Islamic Bank (DISB.DU) advancing 1.2%.
In Abu Dhabi, the index (.FTFADGI) added 0.3%.
Oil prices - a key catalyst for the Gulf's financial markets - edged up as top exporters Saudi Arabia and Russia said they would stick to extra voluntary oil output cuts until the end of the year, keeping supply tight, while investors watched out for tougher U.S. sanctions on Iranian oil.
The Qatari benchmark (.QSI) increased 0.6%, driven by a 6.1% jump in Islamic lender Masraf Al Rayan (MARK.QA).
Most major stock markets in the Gulf rose in early trade on Monday after softer-than-expected U.S. jobs data reinforced expectations that the Federal Reserve will not hike interest rates further.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
U.S. job growth slowed in October in part as auto union strikes depressed manufacturing payrolls; the increase in annual wages was the smallest in nearly 2-1/2 years.
Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by 1.3% rise in Lumi Rental Co (4262.SE).
However, oil giant Saudi Aramco (2222.SE) eased 0.2%, ahead of earnings announcement on Tuesday.
Saudi Arabia confirmed it would continue with its additional voluntary cut of 1 million barrels per day (bpd) in December to keep output at around 9 million bpd, a source at the ministry of energy said in a statement. The Saudi decision was in line with analysts' expectations.
Dubai's main share index (.DFMGI) gained 0.5%, with shariacompliant lender Dubai Islamic Bank (DISB.DU) advancing 1.2%.
In Abu Dhabi, the index (.FTFADGI) added 0.3%.
Oil prices - a key catalyst for the Gulf's financial markets - edged up as top exporters Saudi Arabia and Russia said they would stick to extra voluntary oil output cuts until the end of the year, keeping supply tight, while investors watched out for tougher U.S. sanctions on Iranian oil.
The Qatari benchmark (.QSI) increased 0.6%, driven by a 6.1% jump in Islamic lender Masraf Al Rayan (MARK.QA).