Golub Capital planning UAE presence to raise more funds for private credit investment
Golub Capital, a $60-billion direct lender and asset manager, plans to set up a UAE office to broaden the pool of its regional investors and raise more money for its private credit strategies, its chief executive has said.
A permanent presence in the UAE will not only open new avenues of funding for Golub in the Arab world’s second-largest economy, but also across the wider Gulf and Mena regions, Lawrence Golub told The National in an interview in Abu Dhabi.
A future base in the UAE is in line with the company’s plans to increase its global footprint. However, Golub has yet to decide where in the Emirates it will set up its base.
“At some point in the future, we'll have a permanent office here,” Mr Golub said of the UAE.
“We have expanded to London and we have 20 people there. We just recently announced opening a small office in Hong Kong. So, opening an office in the Gulf region will be very consistent with the other places. We are big believers in having regular local presence."
Tuesday, 12 December 2023
Persian Gulf IPOs: MBC, PureHealth Draw $87 Billion in Orders - Bloomberg
Persian Gulf IPOs: MBC, PureHealth Draw $87 Billion in Orders - Bloomberg
Investors’ appetite for initial public offerings in the Persian Gulf is showing no signs of fatigue, with a Middle Eastern broadcaster and a health-care firm drawing a combined $87 billion in orders for their share sales.
MBC Group, the Middle East’s biggest broadcaster, drew 54.5 billion riyals ($14.5 billion) in institutional investor orders for its $222 million Riyadh IPO — for a subscription coverage of about 66 times — it said on Tuesday. The firm has yet to take orders from retail investors, meaning the total order book will be even larger.
On the same day PureHealth Holding, which is controlled by one of Abu Dhabi’s wealth funds and its largest conglomerate, said it had attracted demand worth over 265 billion dirhams ($72 billion) for its $986 million listing in the United Arab Emirates’ capital.
Professional investors within the UAE and the region put in orders for 54 times the shares made available to them in the PureHealth IPO, while retail buyers piled in for 483 times the shares on offer, the company said.
That’s in stark contrast to the anaemic listings picture in most other parts of the world. The Middle East has been a bright spot where IPOs have continued to find willing buyers who have mostly been rewarded with solid returns once the stocks have started trading.
Companies that raised at least $50 million in Gulf IPOs this year have rallied 38% on average post debut, far outperforming the equivalent cohorts in Europe, the US and Asia, data compiled by Bloomberg show.
The region’s IPO market has boomed on the back of high oil prices, growing investor interest and government privatization programs. So far this year $9.3 billion has been raised through Middle Eastern IPOs, representing about 40% of total volumes in all of Europe, the Middle East and Africa.
To be sure, in many cases the stakes being sold are small, meaning demand far outstrips supply. In both the MBC and PureHealth IPOs, only 10% of the company is being sold.
Investors’ appetite for initial public offerings in the Persian Gulf is showing no signs of fatigue, with a Middle Eastern broadcaster and a health-care firm drawing a combined $87 billion in orders for their share sales.
MBC Group, the Middle East’s biggest broadcaster, drew 54.5 billion riyals ($14.5 billion) in institutional investor orders for its $222 million Riyadh IPO — for a subscription coverage of about 66 times — it said on Tuesday. The firm has yet to take orders from retail investors, meaning the total order book will be even larger.
On the same day PureHealth Holding, which is controlled by one of Abu Dhabi’s wealth funds and its largest conglomerate, said it had attracted demand worth over 265 billion dirhams ($72 billion) for its $986 million listing in the United Arab Emirates’ capital.
Professional investors within the UAE and the region put in orders for 54 times the shares made available to them in the PureHealth IPO, while retail buyers piled in for 483 times the shares on offer, the company said.
That’s in stark contrast to the anaemic listings picture in most other parts of the world. The Middle East has been a bright spot where IPOs have continued to find willing buyers who have mostly been rewarded with solid returns once the stocks have started trading.
Companies that raised at least $50 million in Gulf IPOs this year have rallied 38% on average post debut, far outperforming the equivalent cohorts in Europe, the US and Asia, data compiled by Bloomberg show.
The region’s IPO market has boomed on the back of high oil prices, growing investor interest and government privatization programs. So far this year $9.3 billion has been raised through Middle Eastern IPOs, representing about 40% of total volumes in all of Europe, the Middle East and Africa.
To be sure, in many cases the stakes being sold are small, meaning demand far outstrips supply. In both the MBC and PureHealth IPOs, only 10% of the company is being sold.
RedBird IMI in talks to buy UK's All3Media in $1.3 bln deal -FT | Reuters
RedBird IMI in talks to buy UK's All3Media in $1.3 bln deal -FT | Reuters
Investment group RedBird IMI is in advanced talks to buy UK film and TV production firm All3Media in a deal worth about 1 billion pounds ($1.26 billion), the Financial Times reported on Tuesday, citing people familiar with the matter.
The company, behind hit shows such as "Fleabag" and "Midsomer Murders," is owned jointly by Warner Bros Discovery (WBD.O) and Liberty Global (LBTYA.O). It reported its best ever year in 2022, with revenue topping $1 billion.
The deal may enter exclusive negotiations before Christmas and other groups are still interested, according to the report.
RedBird IMI is led by former CNN executive Jeff Zucker and backed by Mansour bin Zayed Al Nahyan, a member of the ruling family of Abu Dhabi and the owner of soccer club Manchester City.
Warner Bros Discovery, RedBird IMI and All3Media did not immediately respond to Reuters' requests for comment.
Investment group RedBird IMI is in advanced talks to buy UK film and TV production firm All3Media in a deal worth about 1 billion pounds ($1.26 billion), the Financial Times reported on Tuesday, citing people familiar with the matter.
The company, behind hit shows such as "Fleabag" and "Midsomer Murders," is owned jointly by Warner Bros Discovery (WBD.O) and Liberty Global (LBTYA.O). It reported its best ever year in 2022, with revenue topping $1 billion.
The deal may enter exclusive negotiations before Christmas and other groups are still interested, according to the report.
RedBird IMI is led by former CNN executive Jeff Zucker and backed by Mansour bin Zayed Al Nahyan, a member of the ruling family of Abu Dhabi and the owner of soccer club Manchester City.
Warner Bros Discovery, RedBird IMI and All3Media did not immediately respond to Reuters' requests for comment.
Gulf markets end mixed with interest rates in focus | Reuters
Gulf markets end mixed with interest rates in focus | Reuters
Stock markets in the Gulf ended mixed on Tuesday ahead of U.S. inflation figures that could set the tone for trading in a week filled with central bank meetings.
The U.S. Federal Reserve is widely expected to hold rates on Wednesday, with the spotlight squarely on comments from Chair Jerome Powell during his news conference, as well as the central bank's economic projections.
Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to the direct impact of monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index (.TAS) gained 0.1%, helped by a 4.4% rise in digital solutions provider Elm Co (7203.SE).
Separately, Saudi state-owned media giant MBC priced its initial public offering (IPO) at the top of the previously announced range, selling its shares at 25 riyals ($6.67) each on Tuesday.
However, oil giant Saudi Aramco (2222.SE) fell 0.3%.
Oil slipped, giving up earlier gains, as concern over excess supply and slowing demand growth outweighed escalating supply risks in the Middle East after an attack by the Iran-aligned Houthis on a tanker.
Dubai's main share index (.DFMGI) edged 0.1% higher, with utility firm Dubai ELectricity and Water Authority (DEWAA.DU) gaining 0.8%.
In Abu Dhabi, the index (.FTFADGI) added 0.4%.
The Qatari benchmark (.QSI) eased 0.1%, hit by a 1% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
The Qatari stock market extended its downtrend and saw negative performances among several major stocks, said George Pavel, General Manager at Capex.com Middle East.
"The market could continue to see downside risks while natural gas prices remain in a slump."
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.4%, weighed down by a 1.3% fall in Commercial International Bank (COMI.CA).
Egyptians cast their ballots on Tuesday on the third and last day of a presidential election expected to give President Abdel Fattah al-Sisi a sweeping victory in the absence of real competition.
Stock markets in the Gulf ended mixed on Tuesday ahead of U.S. inflation figures that could set the tone for trading in a week filled with central bank meetings.
The U.S. Federal Reserve is widely expected to hold rates on Wednesday, with the spotlight squarely on comments from Chair Jerome Powell during his news conference, as well as the central bank's economic projections.
Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to the direct impact of monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index (.TAS) gained 0.1%, helped by a 4.4% rise in digital solutions provider Elm Co (7203.SE).
Separately, Saudi state-owned media giant MBC priced its initial public offering (IPO) at the top of the previously announced range, selling its shares at 25 riyals ($6.67) each on Tuesday.
However, oil giant Saudi Aramco (2222.SE) fell 0.3%.
Oil slipped, giving up earlier gains, as concern over excess supply and slowing demand growth outweighed escalating supply risks in the Middle East after an attack by the Iran-aligned Houthis on a tanker.
Dubai's main share index (.DFMGI) edged 0.1% higher, with utility firm Dubai ELectricity and Water Authority (DEWAA.DU) gaining 0.8%.
In Abu Dhabi, the index (.FTFADGI) added 0.4%.
The Qatari benchmark (.QSI) eased 0.1%, hit by a 1% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
The Qatari stock market extended its downtrend and saw negative performances among several major stocks, said George Pavel, General Manager at Capex.com Middle East.
"The market could continue to see downside risks while natural gas prices remain in a slump."
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.4%, weighed down by a 1.3% fall in Commercial International Bank (COMI.CA).
Egyptians cast their ballots on Tuesday on the third and last day of a presidential election expected to give President Abdel Fattah al-Sisi a sweeping victory in the absence of real competition.
#AbuDhabi Becomes More Attractive to Crypto Industry Roiled By Crackdown - Bloomberg
Abu Dhabi Becomes More Attractive to Crypto Industry Roiled By Crackdown - Bloomberg
Abu Dhabi is becoming a popular destination for crypto companies seeking eager investors and friendlier regulators, at a time when major markets like the US are experiencing an absence of both.
Companies like Copper Technologies Ltd., Paxos Trust Co. and eToro Group Ltd. have turned to Abu Dhabi as a destination for global expansion in recent weeks, securing licenses or establishing parts of their crypto businesses inside the emirate’s international economic zone, known as the Abu Dhabi Global Market. Shares in Phoenix Group Plc, a cryptocurrency mining hardware company, have jumped 47% since their debut on public markets in Abu Dhabi on Dec. 5.
Executives cite a growing network of partners and developing government policy as advantages to basing themselves in the city, in addition to deep-pocketed investors. While neighboring Dubai became a popular choice when it established a crypto-specific watchdog called the Virtual Assets Regulatory Authority, or VARA, in March last year, officials in Abu Dhabi have been making a concerted play for the young industry’s attention, executives said.
“The buy-in generally for blockchain-based financial markets as the future for Abu Dhabi is very high,” said Copper Chief Executive Officer Dmitry Tokarev in an interview. ADGM’s Financial Services Regulatory Authority, the zone’s finance regulator, has listed support for innovation in digital assets as part of its 2024 business plan, Tokarev added.
Abu Dhabi is becoming a popular destination for crypto companies seeking eager investors and friendlier regulators, at a time when major markets like the US are experiencing an absence of both.
Companies like Copper Technologies Ltd., Paxos Trust Co. and eToro Group Ltd. have turned to Abu Dhabi as a destination for global expansion in recent weeks, securing licenses or establishing parts of their crypto businesses inside the emirate’s international economic zone, known as the Abu Dhabi Global Market. Shares in Phoenix Group Plc, a cryptocurrency mining hardware company, have jumped 47% since their debut on public markets in Abu Dhabi on Dec. 5.
Executives cite a growing network of partners and developing government policy as advantages to basing themselves in the city, in addition to deep-pocketed investors. While neighboring Dubai became a popular choice when it established a crypto-specific watchdog called the Virtual Assets Regulatory Authority, or VARA, in March last year, officials in Abu Dhabi have been making a concerted play for the young industry’s attention, executives said.
“The buy-in generally for blockchain-based financial markets as the future for Abu Dhabi is very high,” said Copper Chief Executive Officer Dmitry Tokarev in an interview. ADGM’s Financial Services Regulatory Authority, the zone’s finance regulator, has listed support for innovation in digital assets as part of its 2024 business plan, Tokarev added.
Top Mideast Broadcaster, MBC Group, Gets $14.5 Billion Orders for #Saudi IPO - Bloomberg
Top Mideast Broadcaster, MBC Group, Gets $14.5 Billion Orders for Saudi IPO - Bloomberg
MBC Group, the Middle East’s biggest broadcaster, drew $14.5 billion in investor orders for its Saudi initial public offering of 831 million riyals ($222 million), boosting the year-end rush of listings in the Persian Gulf.
MBC set the IPO price at 25 riyals per share — the top of a marketed range — for its offering of a 10% stake in the company, according to a statement on Tuesday. The pricing values the broadcaster at $2.2 billion.
The strong investor demand shows that appetite for listings in the Middle East remains healthy even as IPOs elsewhere struggle to gain traction. High oil prices have helped buoy a listing boom over the past two years and investors flush with cash have been piling into the offerings which often perform well.
Retail buyers will be able to bid for the IPO between Dec. 14 and 18 while the trading date is still to be determined but is likely to be in 2024, according to terms of the deal seen by Bloomberg.
Founded in London in 1991, MBC was the first privately-owned pan-Arab satellite TV group before the Saudi government took a 60% stake. Founder and chairman Waleed Al Ibrahim — one of the kingdom’s richest businessmen — has the remaining shares.
MBC Group, the Middle East’s biggest broadcaster, drew $14.5 billion in investor orders for its Saudi initial public offering of 831 million riyals ($222 million), boosting the year-end rush of listings in the Persian Gulf.
MBC set the IPO price at 25 riyals per share — the top of a marketed range — for its offering of a 10% stake in the company, according to a statement on Tuesday. The pricing values the broadcaster at $2.2 billion.
The strong investor demand shows that appetite for listings in the Middle East remains healthy even as IPOs elsewhere struggle to gain traction. High oil prices have helped buoy a listing boom over the past two years and investors flush with cash have been piling into the offerings which often perform well.
Retail buyers will be able to bid for the IPO between Dec. 14 and 18 while the trading date is still to be determined but is likely to be in 2024, according to terms of the deal seen by Bloomberg.
Founded in London in 1991, MBC was the first privately-owned pan-Arab satellite TV group before the Saudi government took a 60% stake. Founder and chairman Waleed Al Ibrahim — one of the kingdom’s richest businessmen — has the remaining shares.
Jubilee Metals forms Zambian copper recovery venture with #UAE's IRH | Reuters
Jubilee Metals forms Zambian copper recovery venture with UAE's IRH | Reuters
Jubilee Metals Group (JLP.L) said on Tuesday it has formed a strategic partnership with Abu Dhabi-based International Resources Holdings (IRH) to recover copper from a historic waste dump in Zambia.
Africa's number 2 copper producer Zambia last month picked IRH, a unit of Abu Dhabi's most valuable listed company International Holding Company (IHC.AD) (IHC), as the new strategic equity partner in the state-owned Mopani Copper Mine.
IRH, which was not immediately available for comment, is actively pursuing the acquisition of metal assets including copper, nickel, graphite, manganese, cobalt and lithium which are essential to the UAE's clean green energy drive.
Jubilee, which mainly focuses on recovering metals from mineral waste, said it had secured IRH's investment to process an estimated 350 million metric tons of copper waste rock, which could potentially yield "in excess of 20,000 tons per annum of copper at a cost of below $4,000 per tonne of copper".
Jubilee said it had agreed with IRH to form a dedicated special purpose vehicle through which both the acquisition of the copper waste rock and implementation of the processing solution will be funded, at an estimated cost of $50 million.
"Under the funding term sheet IRH undertakes to provide all capital required by the special purpose vehicle through a combination of equity in the special purpose vehicle and shareholder loans," Jubilee said in a statement.
The construction and commissioning of the copper retreatment works would be completed within a 12 month period, Jubilee said, with work expected to start in the first quarter of 2024.
Jubilee will design, implement and operate the mining and processing project on behalf of the joint venture, it added.
Jubilee Metals Group (JLP.L) said on Tuesday it has formed a strategic partnership with Abu Dhabi-based International Resources Holdings (IRH) to recover copper from a historic waste dump in Zambia.
Africa's number 2 copper producer Zambia last month picked IRH, a unit of Abu Dhabi's most valuable listed company International Holding Company (IHC.AD) (IHC), as the new strategic equity partner in the state-owned Mopani Copper Mine.
IRH, which was not immediately available for comment, is actively pursuing the acquisition of metal assets including copper, nickel, graphite, manganese, cobalt and lithium which are essential to the UAE's clean green energy drive.
Jubilee, which mainly focuses on recovering metals from mineral waste, said it had secured IRH's investment to process an estimated 350 million metric tons of copper waste rock, which could potentially yield "in excess of 20,000 tons per annum of copper at a cost of below $4,000 per tonne of copper".
Jubilee said it had agreed with IRH to form a dedicated special purpose vehicle through which both the acquisition of the copper waste rock and implementation of the processing solution will be funded, at an estimated cost of $50 million.
"Under the funding term sheet IRH undertakes to provide all capital required by the special purpose vehicle through a combination of equity in the special purpose vehicle and shareholder loans," Jubilee said in a statement.
The construction and commissioning of the copper retreatment works would be completed within a 12 month period, Jubilee said, with work expected to start in the first quarter of 2024.
Jubilee will design, implement and operate the mining and processing project on behalf of the joint venture, it added.
#Dubai pools assets in new fund to invest abroad | Reuters
Dubai pools assets in new fund to invest abroad | Reuters
Dubai will transfer shares in some of its biggest companies to a new investment fund, aiming to bolster the emirate's financial stability by investing at home and internationally.
Dubai has become one of the world's fastest-growing cities, with a property market that has boomed since the global financial crisis, helped by Russian demand and a swift economic rebound from the pandemic, aided by eased residency rules.
The fund will hold shares in Dubai Electricity and Water Authority, toll-road operator Salik and Dubai Taxi and other state-owned firms, the Dubai Media Office said on Monday.
The fund will have responsibility for investing government funds, surpluses and general reserves, the Office said in a statement, adding that it would focus on investments in stocks and bonds and explore prospects both domestic and foreign.
Dubai will transfer shares in some of its biggest companies to a new investment fund, aiming to bolster the emirate's financial stability by investing at home and internationally.
Dubai has become one of the world's fastest-growing cities, with a property market that has boomed since the global financial crisis, helped by Russian demand and a swift economic rebound from the pandemic, aided by eased residency rules.
The fund will hold shares in Dubai Electricity and Water Authority, toll-road operator Salik and Dubai Taxi and other state-owned firms, the Dubai Media Office said on Monday.
The fund will have responsibility for investing government funds, surpluses and general reserves, the Office said in a statement, adding that it would focus on investments in stocks and bonds and explore prospects both domestic and foreign.
#SaudiArabia's MBC media group prices IPO at top of range | Reuters
Saudi Arabia's MBC media group prices IPO at top of range | Reuters
Saudi state-owned media giant MBC priced its initial public offering (IPO) at the top of the previously announced range, selling its shares at 25 riyals ($6.67) each on Tuesday.
MBC plans to float 10% of its share capital on the Saudi Exchange with the company's market capitalisation expected to be 8.3 billion riyals ($2.21 billion) at listing.
It operates 13 free-to-air TV channels and runs the streaming-platform Shahid, known as the Netflix of the Middle East.
There has been a flurry of Saudi IPOs in recent years as the government privatises state assets and encourages private sector companies to list in a bid to deepen capital markets and attract investment, part of a reform push aimed at cutting the Kingdom’s reliance on oil.
Saudi state-owned media giant MBC priced its initial public offering (IPO) at the top of the previously announced range, selling its shares at 25 riyals ($6.67) each on Tuesday.
MBC plans to float 10% of its share capital on the Saudi Exchange with the company's market capitalisation expected to be 8.3 billion riyals ($2.21 billion) at listing.
It operates 13 free-to-air TV channels and runs the streaming-platform Shahid, known as the Netflix of the Middle East.
There has been a flurry of Saudi IPOs in recent years as the government privatises state assets and encourages private sector companies to list in a bid to deepen capital markets and attract investment, part of a reform push aimed at cutting the Kingdom’s reliance on oil.
Gulf markets trade in tight range ahead of US inflation data | Reuters
Gulf markets trade in tight range ahead of US inflation data | Reuters
Stock markets in the Gulf traded in a tight range on Tuesday as caution prevailed ahead of U.S. inflation data and the Federal Reserve policy decision.
The Fed is widely expected to hold interest rates steady on Wednesday and keep them at the same level until at least July, later than earlier thought. The U.S. Consumer Price Index (CPI) report is due later on Tuesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by decisions of the Federal Reserve as most regional currencies are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI) fell 0.1% in early trade, with most sectors trading in negative territory.
Emaar Properties (EMAR.DU) declined 1.2% and the emirate's largest lender, Emirates NBD (ENBD.DU), dropped 1.2%.
The Qatari benchmark stock index (.QSI) slipped 0.1%, with most sectors in negative territory, dragged down by a 0.9% drop in Qatar Commercial Bank (COMB.QA) and 0.4% decline in Qatar National Bank (QNBK.QA), the region's largest lender.
Saudi Arabia's benchmark stock index (.TASI) rose 0.2%, helped by gains in most sectors. Elm Company (7203.SE) jumped 2%, while Al Rajhi Bank (1120.SE), the world's biggest Islamic lender, and Saudi National Bank (1180.SE), the Kingdom's biggest bank, climbed 1.1% and 1.3%, respectively.
In Abu Dhabi, the benchmark stock index (.FTFADGI) inched up, supported by a 1.6% rise in Alpha Dhabi (ALPHADHABI.AD) and 3.3% gain in Emirates Driving Company (DRIVE.AD).
However, First Abu Dhabi Bank (FAB.AD), the UAE's largest lender, lost 0.8%.
Stock markets in the Gulf traded in a tight range on Tuesday as caution prevailed ahead of U.S. inflation data and the Federal Reserve policy decision.
The Fed is widely expected to hold interest rates steady on Wednesday and keep them at the same level until at least July, later than earlier thought. The U.S. Consumer Price Index (CPI) report is due later on Tuesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by decisions of the Federal Reserve as most regional currencies are pegged to the U.S. dollar.
Dubai's benchmark stock index (.DFMGI) fell 0.1% in early trade, with most sectors trading in negative territory.
Emaar Properties (EMAR.DU) declined 1.2% and the emirate's largest lender, Emirates NBD (ENBD.DU), dropped 1.2%.
The Qatari benchmark stock index (.QSI) slipped 0.1%, with most sectors in negative territory, dragged down by a 0.9% drop in Qatar Commercial Bank (COMB.QA) and 0.4% decline in Qatar National Bank (QNBK.QA), the region's largest lender.
Saudi Arabia's benchmark stock index (.TASI) rose 0.2%, helped by gains in most sectors. Elm Company (7203.SE) jumped 2%, while Al Rajhi Bank (1120.SE), the world's biggest Islamic lender, and Saudi National Bank (1180.SE), the Kingdom's biggest bank, climbed 1.1% and 1.3%, respectively.
In Abu Dhabi, the benchmark stock index (.FTFADGI) inched up, supported by a 1.6% rise in Alpha Dhabi (ALPHADHABI.AD) and 3.3% gain in Emirates Driving Company (DRIVE.AD).
However, First Abu Dhabi Bank (FAB.AD), the UAE's largest lender, lost 0.8%.
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