#SaudiArabia to sell $12bn worth of Aramco shares

Saudi Arabia to sell $12bn worth of Aramco shares

Saudi Arabia is selling roughly $12bn worth of shares in its national oil company Saudi Aramco, as the kingdom seeks further capital for its sovereign wealth fund. 

The Saudi government will sell at least 1.545bn shares, or 0.64 per cent, of the world’s largest oil company at a price between SR26.7 and SR29. 

The Saudi kingdom also has the option to sell up to an additional 154.5mn shares at the final price. If the option is exercised in full, it would net the kingdom an additional $1bn. 

Amin Nasser, the chief executive of Saudi Aramco, said the timing of the sale had been decided by the government, but that the offering was an opportunity for the company to broaden its international investor base. He declined to name any anchor investors in the offering, saying the process would begin on June 2 and end on June 6. 

“This transaction provides an opportunity for current and new investors to build a sizeable position in Saudi Aramco at a price where we believe the company offers attractive value and growth to our shareholders,” he said, adding that Aramco had paid out $98bn in dividends in 2023 and expects to pay out $124bn this year.

Most Gulf bourses rise; #Saudi hits 5-month low | Reuters

Most Gulf bourses rise; Saudi hits 5-month low | Reuters

Most stock markets in the Gulf reversed early losses to end higher on Thursday, ahead of key U.S. inflation data this week, while the Saudi index hit more than a five-month low.

The Qatari benchmark index (.QSI), opens new tab rose 0.4% after dropping to its lowest in nearly four years at yesterday's close. The index was lifted by a 4.2% increase in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 4% gain in Gulf International Services (GISS.QA), opens new tab.

However, for the month, the index was down 4.2%, its third straight monthly loss.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab bounced back after eight straight sessions of losses to end 0.5% higher. First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, climbed 1.2% and ADNOC Logistics (ADNOCLS.AD), opens new tab rose 1.8%.

The energy major ADNOC's logistics unit, ADNOC CLS, and Hanwha Ocean signed a letter of intent on Thursday to construct at least three liquefied natural gas (LNG) carriers.

Dubai's benchmark index (.DFMGI), opens new tab was up 0.3%, after two consecutive sessions of losses.

The blue-chip developer Emaar Properties (EMAR.DU), opens new tab advanced 1.9% and Emirates NBD (ENBD.DU), opens new tab, the emirates' largest lender, rose 1.6%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 1.7% to 11,503, its lowest in more than 5 months with all of its constituents posting losses. For the month, it was down 7.2%, its biggest monthly decline since September 2022.

Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, slipped 3% and ACWA Power (2082.SE), opens new tab slumped 10%, the steepest percentage fall in more than two years.

Meanwhile, investors are awaiting U.S. inflation data on Friday to gauge the scale of interest rate cuts this year, with markets currently pricing just one rate cut from the Federal Reserve by the end of 2024.

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.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down for a fourth straight session, dipping 0.6%, but was up 10.1% for the month, its biggest monthly advance since January.

Among individual stocks, Talaat Mostafa Group (TMGH.CA), opens new tab dropped 4.7% and Misr Fertilizers Production (MFPC.CA), opens new tab declined 8.3%. Eastern Company (EAST.CA), opens new tab, however, surged 7.4% after the Egypt's largest cigarette manufacturer posted a 27% surge in its third-quarter net profit.

#SaudiArabia IPOs: Investors Rush In With $176 Billion in Orders - Bloomberg

Saudi Arabia IPOs: Investors Rush In With $176 Billion in Orders - Bloomberg

Four Saudi Arabian companies have drawn a combined 659 billion riyals ($176 billion) in orders for their initial public offerings, as fund managers flocked to share sales that have offered near-guaranteed returns over the last two years.

The demand for new IPOs — that’s exceeded orders for Saudi Aramco’s record issue in 2019 — is also weighing on the kingdom’s stock market. The Tadawul All Share Index is trailing its emerging-market peers for the first time since the pandemic and has fallen almost 8% from its March peak — partly because of investors who’re holding on to cash to invest in the offerings.

Institutional investors put 341 billion riyals of orders for the 2.86 billion-riyal IPO of Dr. Soliman Abdul Kader Fakeeh Hospital Co. earlier this month, data compiled by Bloomberg show. Saudi Manpower Solutions Co. drew orders worth 115 billion riyals, or 128 times more than the shares made available to fund managers.

Rasan Information Technology Co., one of the first fintech firms to go public in Riyadh, received orders of 108.6 billion riyals for its 841 million riyal IPO, while water treatment firm Miahona’s listing was covered 170 times by investors, with 94.4 billion riyals in orders.

The #UAE’s rising influence in Africa

The UAE’s rising influence in Africa

When Sheikh Mohammed bin Zayed al-Nahyan, president of the United Arab Emirates, jetted several hundred friends into a private airport in the Eastern Cape province to celebrate Eid last year, it showed both the promise and pitfalls in dealing with a new cash-rich player in Africa. 

Ahead of a stay at his private resort in one of South Africa’s poorest regions, the UAE ruler was reported to have donated R20mn ($1mn) to upgrade the runway at the backwater airport, which the authorities made an international port of entry for the occasion. 

But despite the mutual display of goodwill, South Africa had failed to convince the UAE to turn over the Gupta brothers, accused by South African authorities of looting the state. The Guptas had fled to the Emirates in 2018 but around two weeks before Sheikh Mohammed was touring the Eastern Cape, a Dubai court refused to extradite two of the brothers citing incorrect paperwork, a ruling South Africa’s justice minister described as “shocking”. 

The fact that South Africa nevertheless rolled out the red carpet for Sheikh Mohammed and his entourage is a sign of just how influential the UAE has become there and across the continent — and an illustration of the complexities this new alignment can sometimes bring. 

As China pares back loans to Africa, the oil-rich Gulf state has become an increasingly important source of foreign investment. In 2022 and 2023, the UAE pledged $97bn in new African investments across renewable energy, ports, mining, real estate, communications, agriculture and manufacturing — three times more than China, according to fDi Markets, an FT-owned company tracking cross-border greenfield projects.

Gold worth tens of billions smuggled to the #UAE each year, report says | Reuters

Gold worth tens of billions smuggled to the UAE each year, report says | Reuters

Gold smuggling out of Africa, mainly to the United Arab Emirates, has surged over the last decade, with hundreds of tonnes of gold worth tens of billions of dollars illegally leaving the continent every year, according to a report published on Thursday.

Analysis by Swissaid, an organisation that focuses on development aid and advocacy, found that a total of 435 tonnes of gold, mostly mined by small-scale miners and worth more than $30 billion, was smuggled out of Africa in 2022.

Swissaid said the UAE was the main destination for Africa’s smuggled gold and took in 405 tonnes in 2022. Over the previous decade, UAE accepted more than 2,500 tonnes of smuggled gold with a total value of over $115 billion, the organisation said.

Asked to comment on the findings, a UAE official said that the country had taken significant steps to address concerns about gold smuggling and implemented new regulations on gold and other precious metals.

#SaudiArabia may announce landmark Aramco share offering Thurs - sources | Reuters

Saudi Arabia may announce landmark Aramco share offering Thurs - sources | Reuters

Saudi Arabia may announce a landmark secondary share offering in oil giant Aramco later on Thursday, pending final approval, people with knowledge of the matter said.

Final approval would come from Crown Prince Mohammed bin Salman. The share offering is expected to be launched on Sunday, the sources said.

The offering is the culmination of a years-long effort to sell another chunk in one of the world's most valuable companies after its record-setting IPO in 2019 that raised $29.4 billion.

Sources told Reuters last week the offering could happen as soon as June, with one adding it could raise around $10 billion.

Since then, Aramco has continued to be a cash cow for the Saudi government as it finances a mammoth economic drive to end its "oil addiction", as the crown prince once called it.

The company bolstered dividends to almost $98 billion in 2023 from the $75 billion it had been paying annually, despite profit having dropped by nearly a quarter. It expects an outlay of $124.3 billion this year.

Aramco has also invested in refineries and petrochemical projects in China and elsewhere, expanded its retail and trading businesses, and sharpened its focus on gas, making its first foray into liquefied natural gas abroad last year.

Banks including Citi (C.N), opens new tab, Goldman Sachs (GS.N), opens new tab, and HSBC (HSBA.L), opens new tab are managing the sale, Reuters has previously reported.

Most Gulf bourses join global fall in early trade | Reuters

Most Gulf bourses join global fall in early trade | Reuters

Most stock markets in the Gulf tracked global peers lower in early trading on Thursday, amid uncertainty over interest rate cuts by the Federal Reserve this year following an unexpected improvement in U.S. consumer confidence.

The U.S. Treasury yields touched multi-week highs on Tuesday, after lacklustre debt auctions and stronger-than-expected economic data dimmed hopes for U.S. rate cuts this year.

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.

The Qatari benchmark index (.QSI), opens new tab slid 0.8%, pressured by a 1.8% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 1.3% loss in Industries Qatar (IQCD.QA), opens new tab.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 0.9%, with most of its constituents posting losses, led by the utilities, healthcare and communication stocks. ACWA Power (2082.SE), opens new tab slumped 9.5% and Middle East Pharmaceutical (4016.SE), opens new tab dropped 1.4%.

Dubai's benchmark stock index (.DFMGI), opens new tab was little changed with Tecom Group (TECOM.DU), opens new tab slipping 1.1%, while Emirates Central Cooling (EMPOWER.DU), opens new tab advanced 1.4%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab rising 2.8% and ADNOC Logistics (ADNOCLS.AD), opens new tab gaining 1.5%.

The energy major ADNOC's logistics unit, ADNOC CLS, and Hanwha Ocean signed a letter of intent on Thursday to construct at least three liquified natural gas (LNG) carriers.