Saudi Aramco’s $12 Billion Stock Offer Sells Out in Hours - Bloomberg
Saudi Aramco’s $12 billion share sale sold out shortly after the deal opened on Sunday, in a boon to the government that’s seeking funds to help pay for a massive economic transformation plan.
The government had demand for all shares on offer in a few hours after books opened, according to terms of the deal seen by Bloomberg News. Books were covered within the price range of 26.70 riyals to 29 riyals.
While it wasn’t immediately clear exactly how much of the demand came from overseas, the order book reflected a mix of local and foreign investors, three people familiar with the matter said, declining to be identified as the information is private.
The extent of foreign participation will be closely watched as an indicator of interest in Saudi assets. During Aramco’s 2019 initial public offering, overseas investors had largely balked at valuation expectations and left the government reliant on local buyers. The $29.4 billion listing drew orders worth $106 billion, and about 23% of shares were allocated to foreign buyers.
A top selling point of the latest offer is the chance to reap one of the oil industry’s biggest dividends. Investors who are willing to look past a steep valuation and the lack of buybacks would cash in on a $124 billion annual payout that Bloomberg Intelligence estimates will give the company a dividend yield of 6.6%.
Aramco shares fell as much as 2.9% to 28.30 riyals Sunday, valuing the firm at about $1.8 trillion. The stock has dropped about 14% since the start of this year, when Bloomberg News first reported the government’s intention to offload a stake, and is currently trading at its lowest levels in over a year.
Sunday, 2 June 2024
#Saudi leads as Gulf bourses end higher; Egypt extends loss | Reuters
Saudi leads as Gulf bourses end higher; Egypt extends loss | Reuters
Most stock markets in the Gulf ended higher on Sunday, led by the Saudi index, after a U.S. inflation reading supported expectations of interest rate cuts from the Federal Reserve.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 1.1% after it hit a more than five-month low on Thursday. The index was lifted by gains in almost all sectors, led by the IT, utilities and healthcare stocks.
ACWA Power (2082.SE), opens new tab advanced 4.4% and Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, added 1.8%. Saudi Aramco (2222.SE), opens new tab, however, slipped 1.9% to 28.45 riyals per share, its lowest level in more than one year.
Meanwhile, Saudi Arabia is offering investors about 1.545 billion Aramco shares, at 26.7 to 29 riyals. The sale drew more demand than the stock on offer within hours of kicking off on Sunday.
The Qatari benchmark index (.QSI), opens new tab was up for a second straight session, and rose 0.7%, aided by gains in energy, finance and real estate sectors. Qatar Fuel Co (QFLS.QA), opens new tab advanced 7.7%, and Qatar Gas Transport (QGTS.QA), opens new tab climbed 4.8%.
The data showed Friday U.S. inflation rose in line with market expectations in April, spurring hopes of interest rates cuts by the Fed.
Most Gulf currencies are pegged to the dollar, so 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 slipped for a fifth consecutive session to end 0.2% lower, with most sectors in the red.
Eastern Company (EAST.CA), opens new tab declined 5.8% and Talaat Mostafa Group(TMGH.CA), opens new tab dropped 2.1%. Juhayna Food(JUFO.CA), opens new tab, however, rose 2.5% after the foods maker posted a 41% increase in its first-quarter net profit.
Most stock markets in the Gulf ended higher on Sunday, led by the Saudi index, after a U.S. inflation reading supported expectations of interest rate cuts from the Federal Reserve.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 1.1% after it hit a more than five-month low on Thursday. The index was lifted by gains in almost all sectors, led by the IT, utilities and healthcare stocks.
ACWA Power (2082.SE), opens new tab advanced 4.4% and Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, added 1.8%. Saudi Aramco (2222.SE), opens new tab, however, slipped 1.9% to 28.45 riyals per share, its lowest level in more than one year.
Meanwhile, Saudi Arabia is offering investors about 1.545 billion Aramco shares, at 26.7 to 29 riyals. The sale drew more demand than the stock on offer within hours of kicking off on Sunday.
The Qatari benchmark index (.QSI), opens new tab was up for a second straight session, and rose 0.7%, aided by gains in energy, finance and real estate sectors. Qatar Fuel Co (QFLS.QA), opens new tab advanced 7.7%, and Qatar Gas Transport (QGTS.QA), opens new tab climbed 4.8%.
The data showed Friday U.S. inflation rose in line with market expectations in April, spurring hopes of interest rates cuts by the Fed.
Most Gulf currencies are pegged to the dollar, so 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 slipped for a fifth consecutive session to end 0.2% lower, with most sectors in the red.
Eastern Company (EAST.CA), opens new tab declined 5.8% and Talaat Mostafa Group(TMGH.CA), opens new tab dropped 2.1%. Juhayna Food(JUFO.CA), opens new tab, however, rose 2.5% after the foods maker posted a 41% increase in its first-quarter net profit.
Investors flock to Aramco share sale that could raise $13 billion | Reuters
Investors flock to Aramco share sale that could raise $13 billion | Reuters
Saudi Arabia's sale of shares in oil giant Aramco (2223.SE), opens new tab drew more demand than the stock on offer within hours of kicking off on Sunday, a landmark deal that could raise up to $13.1 billion in a major test of international appetite for the kingdom's assets.
The banks on the deal will take institutional orders through Thursday and will price the shares the following day, with trading expected to start next Sunday on Riyadh's Saudi Exchange.
The offering will be a gauge of Riyadh's appeal to foreign investors, a key plank of the kingdom's ambitious plan to overhaul its economy. Foreign direct investment has repeatedly missed its targets.
The sale will also bolster efforts by the government to wean itself off its "oil addiction", as Saudi de facto ruler Crown Prince Mohammed bin Salman once called it, analysts and sources have said.
The sovereign wealth fund, the Public Investment Fund (PIF), the preferred vehicle driving the mammoth agenda that has poured tens of billions of dollars into everything from sports to futuristic desert cities, is likely to be a beneficiary of the funds, they said.
Saudi Arabia's sale of shares in oil giant Aramco (2223.SE), opens new tab drew more demand than the stock on offer within hours of kicking off on Sunday, a landmark deal that could raise up to $13.1 billion in a major test of international appetite for the kingdom's assets.
The banks on the deal will take institutional orders through Thursday and will price the shares the following day, with trading expected to start next Sunday on Riyadh's Saudi Exchange.
The offering will be a gauge of Riyadh's appeal to foreign investors, a key plank of the kingdom's ambitious plan to overhaul its economy. Foreign direct investment has repeatedly missed its targets.
The sale will also bolster efforts by the government to wean itself off its "oil addiction", as Saudi de facto ruler Crown Prince Mohammed bin Salman once called it, analysts and sources have said.
The sovereign wealth fund, the Public Investment Fund (PIF), the preferred vehicle driving the mammoth agenda that has poured tens of billions of dollars into everything from sports to futuristic desert cities, is likely to be a beneficiary of the funds, they said.
#SaudiArabia takes orders for new Aramco share sale | Reuters
Saudi Arabia takes orders for new Aramco share sale | Reuters
Saudi Arabia added four more banks for its secondary share offering of oil giant Aramco (2223.SE), opens new tab, as the advisers began taking orders on Sunday for the sale that could eventually raise up to $13.1 billion, 4-1/2 years after its record initial public offering.
The Saudi government may sell up to a 0.7% stake in the world's top oil exporter. The banks on the deal will take orders through Thursday and it will price the following day, with the shares expected to start trading next Sunday on Riyadh's Saudi Exchange.
The investment banks added to the deal since it was announced on Thursday are Credit Suisse Saudi Arabia - part of UBS Group - as a domestic bookrunner alongside BNP Paribas, Bank of China International and China International Capital Corporation as foreign bookrunners, according to a stock exchange filing.
Already on the deal were Saudi National Bank's investment banking arm, which is the lead manager as well as global coordinator alongside Citi, Goldman Sachs, HSBC, JPMorgan, Bank of America and Morgan Stanley. Al Rajhi Capital, Riyad Capital and Saudi Fransi are also domestic joint bookrunners.
Saudi Arabia added four more banks for its secondary share offering of oil giant Aramco (2223.SE), opens new tab, as the advisers began taking orders on Sunday for the sale that could eventually raise up to $13.1 billion, 4-1/2 years after its record initial public offering.
The Saudi government may sell up to a 0.7% stake in the world's top oil exporter. The banks on the deal will take orders through Thursday and it will price the following day, with the shares expected to start trading next Sunday on Riyadh's Saudi Exchange.
The investment banks added to the deal since it was announced on Thursday are Credit Suisse Saudi Arabia - part of UBS Group - as a domestic bookrunner alongside BNP Paribas, Bank of China International and China International Capital Corporation as foreign bookrunners, according to a stock exchange filing.
Already on the deal were Saudi National Bank's investment banking arm, which is the lead manager as well as global coordinator alongside Citi, Goldman Sachs, HSBC, JPMorgan, Bank of America and Morgan Stanley. Al Rajhi Capital, Riyad Capital and Saudi Fransi are also domestic joint bookrunners.
#SaudiArabia Puts Wall Street on Notice to Set Up Shop in Riyadh - Bloomberg
Saudi Arabia Puts Wall Street on Notice to Set Up Shop in Riyadh - Bloomberg
Saudi Arabia’s wealth fund is starting to add some new fine print to the documents it sends to bankers hoping to do business with the $925 billion investor. It wants to know whether their firms have obtained a regional headquarters license in the kingdom.
The move shows the government is doubling down on efforts to get international financial firms to boost their local presence. Those that don’t display sufficient commitment to the country could soon find it harder to win big business.
While banks had initially hoped to sidestep those rules, the pressure is getting harder to resist — especially after Goldman Sachs Group Inc. became the first Wall Street giant to get such a license.
“Once there is sufficient adoption of RHQ licenses in a sector then it increases the pressure on other players in the sector to follow,” said Waleed Rasromani, national managing partner for Saudi Arabia at law firm Linklaters. “Many firms in the financial industry are looking carefully at the RHQ rules at the moment.”
Asking for that license has now become part of the procurement process at the Public Investment Fund, people familiar with the matter said, declining to be identified discussing confidential information. The PIF isn’t currently requiring firms to get one, they said, though asking about their regulatory status is seen as adding to the pressure to do so.
That’s sparked anxiety among bankers seeking to work with the fund, even though the demands so far don’t appear to have affected their chances of winning mandates.
Saudi Arabia’s wealth fund is starting to add some new fine print to the documents it sends to bankers hoping to do business with the $925 billion investor. It wants to know whether their firms have obtained a regional headquarters license in the kingdom.
The move shows the government is doubling down on efforts to get international financial firms to boost their local presence. Those that don’t display sufficient commitment to the country could soon find it harder to win big business.
While banks had initially hoped to sidestep those rules, the pressure is getting harder to resist — especially after Goldman Sachs Group Inc. became the first Wall Street giant to get such a license.
“Once there is sufficient adoption of RHQ licenses in a sector then it increases the pressure on other players in the sector to follow,” said Waleed Rasromani, national managing partner for Saudi Arabia at law firm Linklaters. “Many firms in the financial industry are looking carefully at the RHQ rules at the moment.”
Asking for that license has now become part of the procurement process at the Public Investment Fund, people familiar with the matter said, declining to be identified discussing confidential information. The PIF isn’t currently requiring firms to get one, they said, though asking about their regulatory status is seen as adding to the pressure to do so.
That’s sparked anxiety among bankers seeking to work with the fund, even though the demands so far don’t appear to have affected their chances of winning mandates.