Saudi’s Fakeeh Care Group retail IPO tranche raises $1.1bln, oversubscribed 14.5x
Saudi hospital group Dr. Soliman Abdul Kader Fakeeh Hospital and its subsidiaries (Fakeeh Care Group) said that the retail tranche of its initial public offering (IPO) was oversubscribed 14.5 times, reaching SAR 4.15 billion ($1.11 billion).
A minimum of three shares were allocated to each investor, the company said in a statement on Monday.
The total number of shares offered to retail subscribers was 4.98 million, with the retail tranche running from May 21 to 22.
The remaining shares will be allocated pro-rata at an average allocation factor of 1.4075%.
Fakeeh Care Group announced the sale of a 21.5% stake in an IPO, or 49.8 million shares, at a final offer price of SAR 57.50 ($29.46) per share, raising up to SAR 2.9 billion ($763 million).
The institutional book-building resulted in subscription coverage of nearly 119x the total offered shares.
Following its listing on the Saudi Exchange’s (Tadawul) main market, the company is expected to have a free float of 21.47%.
Monday 27 May 2024
#Dubai contractor Drake & Scull to resume trading on Wednesday
Dubai contractor Drake & Scull to resume trading on Wednesday
Dubai-listed contractor Drake & Scull (DSI) will resume trading on the Dubai Financial Market (DFM) on Wednesday following a suspension for restructuring of more than five years and losses dating back to 2015.
Last week saw a false start as the company’s planned return was delayed pending approvals. DSI proposes to return to trading at a reference share price of AED 0.25 ($0.07) following approvals from the DFM and the UAE's regulator, the Securities and Commodities Authority (SCA).
The company said in a disclosure to DFM that it has raised AED 454 million in a recent capital increase subscription but was carrying accumulated losses of AED 5.5 billion as of 31 March 2024.
However, the disclosure said it had agreed with creditors to write off 90% of claims amounting to AED 3.4 billion, to be registered as a gain in financial statements once written off.
The company said it had also agreed to offset remaining claims of AED 378 million by issuing a mandatory convertible sukuk (MCS) maturing in five years, which it said will have a positive impact on balance sheets.
Dubai-listed contractor Drake & Scull (DSI) will resume trading on the Dubai Financial Market (DFM) on Wednesday following a suspension for restructuring of more than five years and losses dating back to 2015.
Last week saw a false start as the company’s planned return was delayed pending approvals. DSI proposes to return to trading at a reference share price of AED 0.25 ($0.07) following approvals from the DFM and the UAE's regulator, the Securities and Commodities Authority (SCA).
The company said in a disclosure to DFM that it has raised AED 454 million in a recent capital increase subscription but was carrying accumulated losses of AED 5.5 billion as of 31 March 2024.
However, the disclosure said it had agreed with creditors to write off 90% of claims amounting to AED 3.4 billion, to be registered as a gain in financial statements once written off.
The company said it had also agreed to offset remaining claims of AED 378 million by issuing a mandatory convertible sukuk (MCS) maturing in five years, which it said will have a positive impact on balance sheets.
Mideast Stocks: #Qatar index hits 7-month low as most Gulf bourses slip; #Dubai gains
Mideast Stocks: Qatar index hits 7-month low as most Gulf bourses slip; Dubai gains
Stock markets in the Gulf slipped on Monday as investors turned cautious ahead of the U.S. inflation data this week, while the Dubai index halted a three-session losing streak. The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched for clues on the U.S. central bank's interest rate cut path.
Most Gulf currencies are pegged to the dollar, and any Fed action on rates is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index was down for a fourth day, falling 0.7% to 9,332, its lowest level in seven months, with most constituents posting losses. Qatar National Bank, the region's largest lender, dropped 1.5% and Qatar Navigation fell 1.9%.
Saudi Arabia's benchmark stock index slipped for a third consecutive session to end 0.2% lower, with almost all sectors in the red. Riyad Bank lost 2.7% and Etihad Etisalat dropped 2%. The
Abu Dhabi benchmark index fell marginally, with conglomerate Alpha Dhabi Holding losing 1% and National Marine Dredging dropping 1.7%. Among other losers, energy major ADNOC's three units ADNOC Distribution, ADNOC Drilling, and ADNOC Logistics fell 1.1%, 1.5% and 2.2%, respectively.
Meanwhile, energy giant ADNOC announced an increase in its local manufacturing target for critical industrial products in its procurement pipeline to 90 billion dirhams ($24.5 billion) by 2030 from the previous target of 70 billion dirhams ($19 billion) by 2027 as part of its in-country value (ICV) program.
Dubai's benchmark index bounced back after three straight sessions of losses to end 0.4% higher, supported by gains in consumer staples, communications and finance. Dubai Islamic Bank advanced 3.1% and Parkin Company rose 1.9%.
Oil prices, a catalyst for the Gulf's financial markets, were up 0.9% as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.84 a barrel by 1340 GMT.
Outside the Gulf, Egypt's blue-chip index eased 0.9%, pressured by a 2.5% drop in Talaat Mostafa Group and a 5.6% fall in Sidi Kerir Petrochemicals.
Stock markets in the Gulf slipped on Monday as investors turned cautious ahead of the U.S. inflation data this week, while the Dubai index halted a three-session losing streak. The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched for clues on the U.S. central bank's interest rate cut path.
Most Gulf currencies are pegged to the dollar, and any Fed action on rates is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index was down for a fourth day, falling 0.7% to 9,332, its lowest level in seven months, with most constituents posting losses. Qatar National Bank, the region's largest lender, dropped 1.5% and Qatar Navigation fell 1.9%.
Saudi Arabia's benchmark stock index slipped for a third consecutive session to end 0.2% lower, with almost all sectors in the red. Riyad Bank lost 2.7% and Etihad Etisalat dropped 2%. The
Abu Dhabi benchmark index fell marginally, with conglomerate Alpha Dhabi Holding losing 1% and National Marine Dredging dropping 1.7%. Among other losers, energy major ADNOC's three units ADNOC Distribution, ADNOC Drilling, and ADNOC Logistics fell 1.1%, 1.5% and 2.2%, respectively.
Meanwhile, energy giant ADNOC announced an increase in its local manufacturing target for critical industrial products in its procurement pipeline to 90 billion dirhams ($24.5 billion) by 2030 from the previous target of 70 billion dirhams ($19 billion) by 2027 as part of its in-country value (ICV) program.
Dubai's benchmark index bounced back after three straight sessions of losses to end 0.4% higher, supported by gains in consumer staples, communications and finance. Dubai Islamic Bank advanced 3.1% and Parkin Company rose 1.9%.
Oil prices, a catalyst for the Gulf's financial markets, were up 0.9% as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.84 a barrel by 1340 GMT.
Outside the Gulf, Egypt's blue-chip index eased 0.9%, pressured by a 2.5% drop in Talaat Mostafa Group and a 5.6% fall in Sidi Kerir Petrochemicals.
#AbuDhabi conglomerate embarks on flurry of mining deals
Abu Dhabi conglomerate embarks on flurry of mining deals
The mining business owned by $240bn Abu Dhabi conglomerate IHC has embarked on a flurry of deals in Africa, after breaking into the market last year with its acquisition of a major Zambian copper mine.
The mining business owned by $240bn Abu Dhabi conglomerate IHC has embarked on a flurry of deals in Africa, after breaking into the market last year with its acquisition of a major Zambian copper mine.
IHC chief executive Syed Basar Shueb, told the Financial Times that its IRH subsidiary had signed joint venture agreements for iron ore mining in two places in Angola — Kassala Kitungo and Munenga — and that it was in advanced talks to mine nickel in Burundi as well as various metals in Tanzania and Kenya.
IHC expected to make about $1bn of mining acquisitions this year, Shueb told the FT.
The Abu Dhabi group’s foray into the mining industry comes as BHP’s £34bn approach for rival Anglo American highlights the race to secure access to minerals such as copper, iron ore and lithium that are critical to the transition to cleaner energy.
Asked who IRH was bidding against for mining assets, Shueb said the “majority of the time you’re competing with Chinese. There’s no other countries.”
#UAE’s top 10 banks see net income rise 9.3% to $5.7bln in Q1
UAE’s top 10 banks see net income rise 9.3% to $5.7bln in Q1
The UAE’s top 10 banks saw their profitability grow in the first quarter of 2024 with net income of AED 20.8 billion ($5.7 billion), up 9.3% on the previous quarter with deposits up 5.1%.
Alvarez & Marsal’s UAE Banking Pulse said loans and advances had already reached the highest level post-COVID-19 pandemic, up 3.4% quarter-on-quarter (QoQ).
A&M said interest rates are likely to be at peak and the cycle reversion is expected to begin in the second half of the year.
The net income growth comes on the back of non-core income growth, lower operational costs, and declining impairment charges of 47.9% QoQ.
With no change in the benchmark interest rates during the quarter, net interest income (NII) declined marginally by 1.1% QoQ, during the quarter, A&M said, however, non-core income grew by 18.9%, growing the total operating income by 4.8%.
Banks analysed for the report are First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al-Khaimah and Sharjah Islamic Bank.
Asad Ahmed, A&M managing director and head of Middle East financial services, said asset quality remains sensitive to the continued high interest rate environment, with the rate reversal expected to start in the autumn of 2024, with a gradual impact expected on net interest margins.
“Barring any regional issues, the sector has reason to remain optimistic as we anticipate continued steady growth in the UAE banking sector,” he said.
The UAE’s top 10 banks saw their profitability grow in the first quarter of 2024 with net income of AED 20.8 billion ($5.7 billion), up 9.3% on the previous quarter with deposits up 5.1%.
Alvarez & Marsal’s UAE Banking Pulse said loans and advances had already reached the highest level post-COVID-19 pandemic, up 3.4% quarter-on-quarter (QoQ).
A&M said interest rates are likely to be at peak and the cycle reversion is expected to begin in the second half of the year.
The net income growth comes on the back of non-core income growth, lower operational costs, and declining impairment charges of 47.9% QoQ.
With no change in the benchmark interest rates during the quarter, net interest income (NII) declined marginally by 1.1% QoQ, during the quarter, A&M said, however, non-core income grew by 18.9%, growing the total operating income by 4.8%.
Banks analysed for the report are First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al-Khaimah and Sharjah Islamic Bank.
Asad Ahmed, A&M managing director and head of Middle East financial services, said asset quality remains sensitive to the continued high interest rate environment, with the rate reversal expected to start in the autumn of 2024, with a gradual impact expected on net interest margins.
“Barring any regional issues, the sector has reason to remain optimistic as we anticipate continued steady growth in the UAE banking sector,” he said.
#SaudiArabia’s SABIC transfers ownership of $3.3bln Hadeed unit to PIF
Saudi Arabia’s SABIC transfers ownership of $3.3bln Hadeed unit to PIF
Petrochemical giant Saudi Basic Industries Corporation (SABIC) has secured all the necessary regulatory approvals for the Saudi Iron and Steel Company’s (Hadeed) acquisition by the Public Investment Fund (PIF).
The company has fulfilled all transaction-related conditions and completed the transfer of Hadeed’s full ownership to PIF, the company said in a statement to the Saudi stock exchange on Sunday.
However, the final price will be set once the completion account mechanism is concluded, which is likely in the second half of 2024, the statement noted.
In September 2023, SABIC agreed to sell its subsidiary Hadeed to the PIF, the Kingdom’s sovereign wealth fund, for an enterprise value of 12.5 billion Saudi riyals ($3.33 billion).
Petrochemical giant Saudi Basic Industries Corporation (SABIC) has secured all the necessary regulatory approvals for the Saudi Iron and Steel Company’s (Hadeed) acquisition by the Public Investment Fund (PIF).
The company has fulfilled all transaction-related conditions and completed the transfer of Hadeed’s full ownership to PIF, the company said in a statement to the Saudi stock exchange on Sunday.
However, the final price will be set once the completion account mechanism is concluded, which is likely in the second half of 2024, the statement noted.
In September 2023, SABIC agreed to sell its subsidiary Hadeed to the PIF, the Kingdom’s sovereign wealth fund, for an enterprise value of 12.5 billion Saudi riyals ($3.33 billion).
Gulf bourses mixed in early trading | Reuters
Gulf bourses mixed in early trading | Reuters
Stock markets in the Gulf were mixed in early trading on Monday amid steady oil prices, while investors awaited further cues on the U.S. Federal Reserve's interest rate outlook.
Oil prices, a catalyst for the Gulf's financial markets, were steady as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.32 a barrel at 0740 GMT.
Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.4%, helped by gains in the consumer staples, finance and industry sectors. Commercial Bank of Dubai (CBD.DU), opens new tab climbed 8.8% and Parkin Company (PARKIN.DU), opens new tab added 1.1%.
Saudi Arabia's benchmark index (.TASI), opens new tab was up 0.3%, supported by gains in most sectors, with Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, rising 1.4% and Dr Sulaiman Al Habib Medical (4013.SE), opens new tab adding 1.1%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was little changed, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab and crypto mining firm Phoenix Group (PHX.AD), opens new tab gaining 0.7% and 2.3% respectively, while Abu Dhabi Commercial Bank (ADCB.AD), opens new tab, the UAE's third-biggest lender, dropped 2.3%.
The Qatari benchmark index (.QSI), opens new tab fell 0.5%, pressured by a 1.6% drop in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 1.1% fall in United Development Co (UDCD.QA), opens new tab.
Friday's U.S. personal consumption expenditures reading will be crucial for investors, giving them an idea of whether the Federal Reserve will be in a position to lower borrowing costs.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Stock markets in the Gulf were mixed in early trading on Monday amid steady oil prices, while investors awaited further cues on the U.S. Federal Reserve's interest rate outlook.
Oil prices, a catalyst for the Gulf's financial markets, were steady as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.32 a barrel at 0740 GMT.
Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.4%, helped by gains in the consumer staples, finance and industry sectors. Commercial Bank of Dubai (CBD.DU), opens new tab climbed 8.8% and Parkin Company (PARKIN.DU), opens new tab added 1.1%.
Saudi Arabia's benchmark index (.TASI), opens new tab was up 0.3%, supported by gains in most sectors, with Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, rising 1.4% and Dr Sulaiman Al Habib Medical (4013.SE), opens new tab adding 1.1%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was little changed, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab and crypto mining firm Phoenix Group (PHX.AD), opens new tab gaining 0.7% and 2.3% respectively, while Abu Dhabi Commercial Bank (ADCB.AD), opens new tab, the UAE's third-biggest lender, dropped 2.3%.
The Qatari benchmark index (.QSI), opens new tab fell 0.5%, pressured by a 1.6% drop in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 1.1% fall in United Development Co (UDCD.QA), opens new tab.
Friday's U.S. personal consumption expenditures reading will be crucial for investors, giving them an idea of whether the Federal Reserve will be in a position to lower borrowing costs.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.