UAE: NMDC Energy IPO closes 31.3 times oversubscribed
NMDC Group, a leader in engineering, procurement, construction, and marine dredging, today announced the successful closing of the Initial Public Offering (IPO or Offering) of NMDC Energy, which was oversubscribed by 31.3 times excluding the cornerstone tranche. The offering attracted exceptional investor interest, generating total gross demand of AED88 billion.
The offering of 1.15 billion shares in NMDC Energy, representing 23 percent of the total share capital, was made available to eligible investors at AED2.8 per share. The IPO saw outstanding demand across all segments, becoming oversubscribed within hours of its launch on 30th August 2024. At the close of the subscription period, the retail tranche was oversubscribed 600 times, and the professional tranche by 16.7 times. The offering will generate AED3.22 billion for NMDC Group.
Yasser Zaghloul, Group CEO of NMDC, said, "This IPO isn’t just a financial milestone—it’s a bold statement about who we are and where we’re going. The unprecedented interest we received underscores the market’s trust in NMDC Group’s ability to lead the industries of the future. We are at the forefront of a new era, and this marks the beginning of something extraordinary.
"With this step, we are building a legacy that goes beyond profits; it’s about sustainable growth, technological innovation, and pushing the boundaries of what’s possible in the energy sector. The future will see NMDC Energy pioneering solutions that power industries and inspire and uplift communities both regionally and globally. As we enter this next phase, I am more confident than ever that NMDC Energy will continue to set new benchmarks and deliver on our promise to drive meaningful progress for the UAE and the global stage.
"Our success today is rooted in the dedication and vision of our shareholders, Board of Directors, and every member of NMDC Group."
Ahmed Al Dhaheri, CEO of NMDC Energy, said, "The immense investor interest in our IPO clearly demonstrates that the market understands the value and potential of NMDC Energy. Additionally, this IPO consolidates the UAE’s position as a leader in supplying the world’s energy needs. As we prepare for a new phase as an ADX-listed company, we will build on this milestone by targeting organic and inorganic growth, expanding our geographical reach, as well as creating synergies that drive transformation and innovation across the business."
NMDC Energy’s Constitutive General Assembly meeting is scheduled for Monday, 9th September, 2024, with trading on the ADX to begin on Wednesday, 11th September 2024, subject to the necessary conditions and approvals. The shares will trade under the symbol NMDCENR.
First Abu Dhabi Bank PJSC acted as lead receiving bank and lead manager for the IPO. Abu Dhabi Commercial Bank PJSC, WIO Bank PJSC, and Al Maryah Community Bank LLC were other receiving banks. International Securities LLC was the placement agent and listing advisor. Hadef & Partners were the legal advisors.
With over 50 years of global experience, NMDC Energy provides integrated solutions in the energy sector, including engineering, procurement, and construction services. The company operates modern manufacturing facilities in Abu Dhabi, covering 1.3 million square metres. As of 30th June 2024, NMDC Energy's backlog was valued at approximately AED54 billion, spanning diverse sectors and regions. The company has a diverse international portfolio with a strong presence in the UAE, Saudi Arabia, Kuwait, India, and Taiwan. To further expand its capabilities, the company is developing a new 400,000-square-metre manufacturing facility at Ras Al Khair Port in Saudi Arabia.
NMDC Group is backed by Alpha Dhabi Holding, a fast-growing investment company in the Middle East and a subsidiary of International Holding Company (IHC).
Thursday, 5 September 2024
OPEC+ agrees to delay October oil output hike for two months, sources say | Reuters
OPEC+ agrees to delay October oil output hike for two months, sources say | Reuters
OPEC+ has agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, three sources from the producers' group told Reuters on Thursday.
Oil prices have been falling along with other asset classes on concerns about a weak global economy and soft data from China, the world's biggest oil importer.
"Done," one of the sources said. The three sources declined to be identified by name.
The news lifted oil prices by over $1, with Brent futures trading at $73.72 a barrel by 1408 GMT. It fell to its lowest this year on Wednesday.
The planned increase was for 180,000 barrels a day, part of around 5.86 million bpd in output OPEC+ is holding back equivalent to about 5.7% of global demand.
Last week, OPEC+, which is made up of the Organization of the Petroleum Exporting Countries and allies led by Russia, was set to proceed with the increase.
Fragile oil market sentiment over the prospect of more supply from OPEC+ and an end to a dispute halting Libyan exports, coupled with a weakening demand outlook, have raised concern within the group.
HSBC said in a report that any decision by OPEC+ might be taken negatively by the market.
"Raising production would tip the market into a meaningful surplus from the first quarter 2025 onwards. On the other hand, holding off may be interpreted as a belated admission by OPEC that oil demand is weak."
RBC Capital analyst Helima Croft said in a note that it may be prudent for OPEC+ to wait until December before returning extra barrels.
The planned October increase was set to come from OPEC+ members who agreed in June to start unwinding the group's most recent layer of output cuts - a cut of 2.2 million bpd by eight countries - from October 2024 to September 2025.
The remaining cuts of 3.66 million bpd, agreed in earlier steps, will remain in place until the end of 2025.
OPEC+ has agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, three sources from the producers' group told Reuters on Thursday.
Oil prices have been falling along with other asset classes on concerns about a weak global economy and soft data from China, the world's biggest oil importer.
"Done," one of the sources said. The three sources declined to be identified by name.
The news lifted oil prices by over $1, with Brent futures trading at $73.72 a barrel by 1408 GMT. It fell to its lowest this year on Wednesday.
The planned increase was for 180,000 barrels a day, part of around 5.86 million bpd in output OPEC+ is holding back equivalent to about 5.7% of global demand.
Last week, OPEC+, which is made up of the Organization of the Petroleum Exporting Countries and allies led by Russia, was set to proceed with the increase.
Fragile oil market sentiment over the prospect of more supply from OPEC+ and an end to a dispute halting Libyan exports, coupled with a weakening demand outlook, have raised concern within the group.
HSBC said in a report that any decision by OPEC+ might be taken negatively by the market.
"Raising production would tip the market into a meaningful surplus from the first quarter 2025 onwards. On the other hand, holding off may be interpreted as a belated admission by OPEC that oil demand is weak."
RBC Capital analyst Helima Croft said in a note that it may be prudent for OPEC+ to wait until December before returning extra barrels.
The planned October increase was set to come from OPEC+ members who agreed in June to start unwinding the group's most recent layer of output cuts - a cut of 2.2 million bpd by eight countries - from October 2024 to September 2025.
The remaining cuts of 3.66 million bpd, agreed in earlier steps, will remain in place until the end of 2025.
Most Gulf markets edge higher ahead of US data | Reuters
Most Gulf markets edge higher ahead of US data | Reuters
Most stock markets in the Gulf ended higher on Thursday a day after a global sell-off as investors remained cautious ahead of U.S. data, although the Saudi index extended losses from the previous session.
Investors are looking for clues to the health of the U.S. economy and the labour market, with markets on edge from Tuesday's weak manufacturing figures and Wednesday's mixed labour data.
The main focus for the week will be Friday's hotly anticipated August nonfarm payrolls report, which is expected to provide clues on where the economy is headed and whether the Fed will cut rates by a quarter or half a percentage point this month.
Markets are now pricing in a 44% chance of a 50 basis point cut at the bank's Sept. 17-18 meeting, up from 38% a day earlier, the CME FedWatch tool showed.
Traders are now anticipating 110 bps of easing this year from the three remaining Fed meetings.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab edged 0.1% higher, helped by a 1.3% rise in Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab advanced 1.2%.
Oil - a catalyst for the Gulf's financial markets - firmed on Thursday from multi-month lows due to a possible delay to output increases by OPEC+ producers and a decline in U.S. inventories, though gains were capped by persistent demand concerns.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, with Al Rajhi Bank losing 0.3%.
Separately, the kingdom's Fourth Milling Company (MC4) said on Thursday it planned an initial public offering on its local stock exchange, adding to a string of listings in the Gulf country.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.1%, supported by a 0.5% rise in top lender Commercial International Bank (COMI.CA), opens new tab.
Most stock markets in the Gulf ended higher on Thursday a day after a global sell-off as investors remained cautious ahead of U.S. data, although the Saudi index extended losses from the previous session.
Investors are looking for clues to the health of the U.S. economy and the labour market, with markets on edge from Tuesday's weak manufacturing figures and Wednesday's mixed labour data.
The main focus for the week will be Friday's hotly anticipated August nonfarm payrolls report, which is expected to provide clues on where the economy is headed and whether the Fed will cut rates by a quarter or half a percentage point this month.
Markets are now pricing in a 44% chance of a 50 basis point cut at the bank's Sept. 17-18 meeting, up from 38% a day earlier, the CME FedWatch tool showed.
Traders are now anticipating 110 bps of easing this year from the three remaining Fed meetings.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab edged 0.1% higher, helped by a 1.3% rise in Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab advanced 1.2%.
Oil - a catalyst for the Gulf's financial markets - firmed on Thursday from multi-month lows due to a possible delay to output increases by OPEC+ producers and a decline in U.S. inventories, though gains were capped by persistent demand concerns.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, with Al Rajhi Bank losing 0.3%.
Separately, the kingdom's Fourth Milling Company (MC4) said on Thursday it planned an initial public offering on its local stock exchange, adding to a string of listings in the Gulf country.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.1%, supported by a 0.5% rise in top lender Commercial International Bank (COMI.CA), opens new tab.
IMF Warns #Saudi Oil Revenue to Fall More Sharply This Decade - Bloomberg
IMF Warns Saudi Oil Revenue to Fall More Sharply This Decade - Bloomberg
Saudi Arabia’s oil revenue is seen rising to 2026 before declining quicker than previously expected through to the end of the decade, according to the International Monetary Fund.
The steeper drop off is likely to cause some concern for the kingdom as Crown Prince Mohammed bin Salman drives an ambitious economic transformation with his Vision 2030 program. Riyadh has already been forced to scale back some of its plans, partly because oil prices remain far below the level the government needs to balance its budget.
Oil revenue will rise to 783 billion riyals ($209 billion) to make up about 26% of gross domestic product in 2026, the IMF said in a report after its annual consultations with the Saudi government. The earnings are seen dipping to 778 billion riyals in 2029, 4.1% less than earlier estimates.
Saudi Arabia needs oil prices at $96 a barrel to balance its budget, according to the IMF. That’s more than $20 higher than global benchmark Brent’s current levels. Bloomberg Economics puts the breakeven at $112, once domestic spending by the kingdom’s sovereign wealth fund is taken into account. The key question for Riyadh is how the current weakness in the oil market will impact its finances and production policy.
The IMF sees Saudi Arabia’s oil production at 9 million barrels a day this year, rising to 10.2 million in 2026 and 11 million in 2029, according to its report. The agency has assumed the kingdom’s average export price at $82.5 a barrel in 2024, dropping to $70 by the end of the decade.
The kingdom also depends heavily on the massive dividend that it gets from 81% ownership of the state-run Saudi Aramco. The company plans to pay out a total of about $124 billion this year, including a special component that was introduced in 2023. Without the performance-linked portion, the fiscal deficit would Saudi of 2% would’ve nearly doubled, the IMF said.
The special payout — estimated at more than $40 billion in 2024 — is set to be lower next year based on Aramco’s formula to pay out a portion of cash flow. Should the company decide to maintain the distribution to ease any pressure on the Saudi budget, it would likely have to boost borrowings, if oil prices don’t increase.
The IMF didn’t break out the weight of dividends, royalties and taxes in calculating the state oil revenue and doesn’t forecast dividend levels. Its calculations also assume the government won’t sell or transfer ownership of further stakes in Aramco, which would push its revenue from the company lower.
Saudi Arabia’s oil revenue is seen rising to 2026 before declining quicker than previously expected through to the end of the decade, according to the International Monetary Fund.
The steeper drop off is likely to cause some concern for the kingdom as Crown Prince Mohammed bin Salman drives an ambitious economic transformation with his Vision 2030 program. Riyadh has already been forced to scale back some of its plans, partly because oil prices remain far below the level the government needs to balance its budget.
Oil revenue will rise to 783 billion riyals ($209 billion) to make up about 26% of gross domestic product in 2026, the IMF said in a report after its annual consultations with the Saudi government. The earnings are seen dipping to 778 billion riyals in 2029, 4.1% less than earlier estimates.
Saudi Arabia needs oil prices at $96 a barrel to balance its budget, according to the IMF. That’s more than $20 higher than global benchmark Brent’s current levels. Bloomberg Economics puts the breakeven at $112, once domestic spending by the kingdom’s sovereign wealth fund is taken into account. The key question for Riyadh is how the current weakness in the oil market will impact its finances and production policy.
The IMF sees Saudi Arabia’s oil production at 9 million barrels a day this year, rising to 10.2 million in 2026 and 11 million in 2029, according to its report. The agency has assumed the kingdom’s average export price at $82.5 a barrel in 2024, dropping to $70 by the end of the decade.
The kingdom also depends heavily on the massive dividend that it gets from 81% ownership of the state-run Saudi Aramco. The company plans to pay out a total of about $124 billion this year, including a special component that was introduced in 2023. Without the performance-linked portion, the fiscal deficit would Saudi of 2% would’ve nearly doubled, the IMF said.
The special payout — estimated at more than $40 billion in 2024 — is set to be lower next year based on Aramco’s formula to pay out a portion of cash flow. Should the company decide to maintain the distribution to ease any pressure on the Saudi budget, it would likely have to boost borrowings, if oil prices don’t increase.
The IMF didn’t break out the weight of dividends, royalties and taxes in calculating the state oil revenue and doesn’t forecast dividend levels. Its calculations also assume the government won’t sell or transfer ownership of further stakes in Aramco, which would push its revenue from the company lower.
BinDawood Shareholder Looks to Exit #Saudi Arabian Supermarket Chain - Bloomberg
BinDawood Shareholder Looks to Exit Saudi Arabian Supermarket Chain - Bloomberg
Commercial Growth Development Company plans to sell 64 million shares in BinDawood Holding Co., exiting its stake in the Saudi Arabian supermarket group, according to a document seen by Bloomberg News.
The stock on sale represents a roughly 5.6% stake in the Riyadh-listed group.
Goldman Sachs Saudi Arabia and SNB Capital Company are handling the overnight sale.
Riyadh has seen more than $13 billion worth of stock sales out of listed companies this year so far, the bulk of which came from a large equity offering out of Saudi Arabian Oil Co, according to data compiled by Bloomberg.
BinDawood listed on the kingdom’s Tadawul bourse in 2020.
Commercial Growth Development Company plans to sell 64 million shares in BinDawood Holding Co., exiting its stake in the Saudi Arabian supermarket group, according to a document seen by Bloomberg News.
The stock on sale represents a roughly 5.6% stake in the Riyadh-listed group.
Goldman Sachs Saudi Arabia and SNB Capital Company are handling the overnight sale.
Riyadh has seen more than $13 billion worth of stock sales out of listed companies this year so far, the bulk of which came from a large equity offering out of Saudi Arabian Oil Co, according to data compiled by Bloomberg.
BinDawood listed on the kingdom’s Tadawul bourse in 2020.
OPEC+ nearing agreement to delay oil output hike, sources say | Reuters
OPEC+ nearing agreement to delay oil output hike, sources say | Reuters
OPEC+ is nearing an agreement to delay an oil output increase scheduled to start in October after oil prices hit their lowest in nine months, two sources from the producer group told Reuters on Thursday.
The move comes as oil prices have been falling together with other asset classes on concerns about a weak global economy and particularly soft data from China, the world's biggest oil importer.
"It is likely that the countries will take action to balance the market by delaying the increase," one the sources said. The second source said OPEC+ was "almost there" on getting an agreement.
Last week, the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as it is known, was set to proceed with a 180,000 barrels-per-day output hike in October, part of a plan to gradually unwind its most recent cuts.
Fragile oil market sentiment over the prospect of more supply from OPEC+ and an end to a dispute halting Libyan exports, coupled with a weakening demand outlook, have raised concern within the group.
Oil prices rose on the possible delay, with global benchmark Brent crude rising to $73 a barrel on Thursday but remaining close to its lowest since December.
OPEC and the Saudi government communications office did not respond to requests for comment made on Wednesday.
OPEC+ is nearing an agreement to delay an oil output increase scheduled to start in October after oil prices hit their lowest in nine months, two sources from the producer group told Reuters on Thursday.
The move comes as oil prices have been falling together with other asset classes on concerns about a weak global economy and particularly soft data from China, the world's biggest oil importer.
"It is likely that the countries will take action to balance the market by delaying the increase," one the sources said. The second source said OPEC+ was "almost there" on getting an agreement.
Last week, the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as it is known, was set to proceed with a 180,000 barrels-per-day output hike in October, part of a plan to gradually unwind its most recent cuts.
Fragile oil market sentiment over the prospect of more supply from OPEC+ and an end to a dispute halting Libyan exports, coupled with a weakening demand outlook, have raised concern within the group.
Oil prices rose on the possible delay, with global benchmark Brent crude rising to $73 a barrel on Thursday but remaining close to its lowest since December.
OPEC and the Saudi government communications office did not respond to requests for comment made on Wednesday.
Moody’s upgrades outlook on six Omani banks to ‘positive’
Moody’s upgrades outlook on six Omani banks to ‘positive’
Moody’s Ratings announced on Wednesday that it has affirmed the long-term local and foreign currency deposit ratings of six Omani banks: Bank Muscat, BankDhofar, National Bank of Oman (NBO), Sohar International Bank, Oman Arab Bank (OAB), and Bank Nizwa.
The rating agency has revised the outlook on these banks’ long-term deposit ratings from ‘stable’ to ‘positive’. Additionally, Moody’s affirmed the Baseline Credit Assessments (BCAs) and Adjusted BCAs of all six banks.
Bank Muscat’s long-term local and foreign currency deposit ratings were affirmed at Ba1, with its BCA and Adjusted BCA also maintained at ba1. The bank’s long-term deposit and senior unsecured debt ratings remain aligned with the ratings of the Government of Oman.
Similarly, Moody’s affirmed Sohar International’s long-term local and foreign currency deposit ratings at Ba1, with its BCA and Adjusted BCA at ba3. Sohar International’s long-term deposit ratings are also in line with the Government of Oman’s ratings.
For NBO, Moody’s affirmed its long-term local and foreign currency deposit ratings at Ba1, with the BCA and Adjusted BCA at ba2 and ba3, respectively. BankDhofar’s long-term local and foreign currency deposit ratings were also affirmed at Ba1, with its BCA and Adjusted BCA at ba3.
OAB saw its long-term local and foreign currency deposit ratings affirmed at Ba1, with an Adjusted BCA of ba2. Bank Nizwa’s long-term local and foreign currency deposit ratings were affirmed at Ba1, with its BCA and Adjusted BCA at ba3.
Moody’s recent rating action on these Omani banks follows the revision of the outlook on the Government of Oman’s rating from stable to positive.
‘The change in outlooks on the long-term deposit ratings to positive for the Omani banks reflects the revision in the outlook on the sovereign rating. For some banks, there is also potential for improvement in the operating environment,’ Moody’s stated.
An upgrade in Oman’s sovereign rating could potentially lead to an increase in government support, benefiting the banks’ ratings, the agency noted.
Moody’s also highlighted that the affirmation of the banks’ BCAs is based on their financial fundamentals and performance, which remain consistent with the current rating level, following the sovereign rating affirmation at Ba1.
‘The affirmation of the deposit ratings takes into account the BCAs’ affirmation and our assessment of the government’s willingness to provide support to banks if needed. This support is very high for all banks, driven by their importance to the domestic financial system and the significant government shareholdings and deposits in several banks,’ Moody’s said.
The rating agency further mentioned that the positive outlook on the long-term deposit ratings suggests that a downgrade in the near term is unlikely. However, downward pressure on Omani banks’ ratings could emerge from a deterioration in the sovereign’s credit profile or a significant decline in the banks’ solvency and liquidity.
Moody’s Ratings announced on Wednesday that it has affirmed the long-term local and foreign currency deposit ratings of six Omani banks: Bank Muscat, BankDhofar, National Bank of Oman (NBO), Sohar International Bank, Oman Arab Bank (OAB), and Bank Nizwa.
The rating agency has revised the outlook on these banks’ long-term deposit ratings from ‘stable’ to ‘positive’. Additionally, Moody’s affirmed the Baseline Credit Assessments (BCAs) and Adjusted BCAs of all six banks.
Bank Muscat’s long-term local and foreign currency deposit ratings were affirmed at Ba1, with its BCA and Adjusted BCA also maintained at ba1. The bank’s long-term deposit and senior unsecured debt ratings remain aligned with the ratings of the Government of Oman.
Similarly, Moody’s affirmed Sohar International’s long-term local and foreign currency deposit ratings at Ba1, with its BCA and Adjusted BCA at ba3. Sohar International’s long-term deposit ratings are also in line with the Government of Oman’s ratings.
For NBO, Moody’s affirmed its long-term local and foreign currency deposit ratings at Ba1, with the BCA and Adjusted BCA at ba2 and ba3, respectively. BankDhofar’s long-term local and foreign currency deposit ratings were also affirmed at Ba1, with its BCA and Adjusted BCA at ba3.
OAB saw its long-term local and foreign currency deposit ratings affirmed at Ba1, with an Adjusted BCA of ba2. Bank Nizwa’s long-term local and foreign currency deposit ratings were affirmed at Ba1, with its BCA and Adjusted BCA at ba3.
Moody’s recent rating action on these Omani banks follows the revision of the outlook on the Government of Oman’s rating from stable to positive.
‘The change in outlooks on the long-term deposit ratings to positive for the Omani banks reflects the revision in the outlook on the sovereign rating. For some banks, there is also potential for improvement in the operating environment,’ Moody’s stated.
An upgrade in Oman’s sovereign rating could potentially lead to an increase in government support, benefiting the banks’ ratings, the agency noted.
Moody’s also highlighted that the affirmation of the banks’ BCAs is based on their financial fundamentals and performance, which remain consistent with the current rating level, following the sovereign rating affirmation at Ba1.
‘The affirmation of the deposit ratings takes into account the BCAs’ affirmation and our assessment of the government’s willingness to provide support to banks if needed. This support is very high for all banks, driven by their importance to the domestic financial system and the significant government shareholdings and deposits in several banks,’ Moody’s said.
The rating agency further mentioned that the positive outlook on the long-term deposit ratings suggests that a downgrade in the near term is unlikely. However, downward pressure on Omani banks’ ratings could emerge from a deterioration in the sovereign’s credit profile or a significant decline in the banks’ solvency and liquidity.