#SaudiArabia's MC4 to raise $229 mln after IPO priced at top of range | Reuters

Saudi Arabia's MC4 to raise $229 mln after IPO priced at top of range | Reuters

Saudi Arabia's Fourth Milling Company (MC4) said on Thursday it is set to raise $229 million from an initial public offering (IPO) on its local stock exchange.

MC4, which is offering 162 million shares equal to a 30% stake, said in a statement the IPO was priced at the top of its indicative range at 5.3 riyals per share, giving the company a market capitalization of 763.2 million riyals at listing.

The tranche for institutional investors was 119 times oversubscribed, MC4 said, adding that after the IPO its owner Gulf Milling Industrial will retain a 70% stake.

MC4, which is involved in the production of flour, other wheat derivatives and animal feed products, did not provide a date for trading in its shares to start on the Saudi bourse.

The firm's flotation adds to a string of listings in Saudi Arabia and the wider Gulf in recent years as countries in the region seek to deepen capital markets and attract investment.

MC4 was one of firms which were part of a wider privatisation programme under Saudi Arabia's Vision 2030 strategy aimed at diversifying the oil-dominated economy.

Modern Mills - previously known as MC3, made its market debut in March after raising $314.6 million by selling a 30% stake, while Arabian Mills, previously known as MC2, earlier this month priced its IPO at the top of the range.

Gulf markets end mixed on China stimulus, regional tensions | Reuters

Gulf markets end mixed on China stimulus, regional tensions | Reuters

Stock markets in the Gulf ended mixed on Thursday helped by news of aggressive economic stimulus from China, while geopolitical tensions in the region weighed on sentiment.

China's central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target.

Driving the optimism was an official readout from a meeting of China's politburo that said the country would deploy "necessary fiscal spending" to meet this year's economic growth target of roughly 5%.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with ACWA Power Company (2082.SE), opens new tab advancing 4.8%.

On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab dropped 0.5%.

Oil prices - a catalyst for the Gulf's financial markets - slipped, reversing earlier gains, on a media report that Saudi Arabia, the world's top crude exporter, will give up its price target in preparation for raising output.

Dubai's main share index (.DFMGI), opens new tab advanced 0.8%, led by a 4.3% rise in Parkin Company (PARKIN.DU), opens new tab.

The United Arab Emirates central bank raised its forecast for 2024 GDP growth to 4% from a previous forecast of 3.9%, citing improvement in the oil sector's performance, the state news agency (WAM) reported on Wednesday.

In Abu Dhabi, the index (.FTFDGI), opens new tab closed flat.

Israel rejected proposals on Thursday for a ceasefire with Hezbollah and conducted a military exercise simulating manoeuvres in Lebanon, defying allies including the United States which had called for an immediate halt in fighting.

On Wednesday, Israel's army chief made the most explicit public comment yet on the possibility of a ground assault on Lebanon, telling troops near the border to be prepared to cross.

The Qatari benchmark (.QSI), opens new tab was up 0.4%, with Qatar National Bank (QNBK.QA), opens new tab gaining 0.2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.1% higher.

#Dubai Hedge Funds: New Platform Seeks to Fast-Track Boom in DIFC - Bloomberg

Dubai Hedge Funds: New Platform Seeks to Fast-Track Boom in DIFC - Bloomberg

Capricorn Fund Managers Ltd. is starting a regulatory hosting platform in Dubai that seeks to help hedge funds and investment companies quickly start operations in the city’s financial hub.

The London-based firm will allow investment managers to carry out regulated activities under its license at the Dubai International Financial Centre, according to a statement.

“Through Capricorn’s hosting solution, we are adding a new route for managers to get licensed and operational in Dubai,” said Salmaan Jaffery, chief business development officer of the DIFC.

Regulatory hosting platforms offer services that enable firms to cut costs. They also help with many of the administrative aspects of business, leaving investment managers free to focus on making money.

Dubai has emerged as a magnet for hedge funds over the past few years. Industry giants from Millennium Management to Balyasny Asset Management have all expanded operations in the Gulf city, drawn by a slew of incentives, a favorable timezone and a low tax regime.

The influx has pushed the hedge fund industry’s headcount in Dubai to over 1,000, and its financial freezone has seen employee numbers surge by two-thirds since 2019 to nearly 44,000. The DIFC now houses more than 400 wealth and asset management firms, including more than 60 hedge funds.

Capricorn Fund Managers is part of the Capricorn Group, a family-owned business that has been involved in alternative investments since 1994 and investment management since 2003.

#Dubai Adopts Stricter Rules Around Marketing Crypto Investments - Bloomberg

Dubai Adopts Stricter Rules Around Marketing Crypto Investments - Bloomberg

Dubai’s crypto regulator updated its marketing guidelines for virtual assets, with the new rules requiring firms to include a disclaimer clarifying the risks of such investments.

As of Oct. 1, companies looking to market virtual assets in the United Arab Emirates will have to include a “prominent” disclaimer stating that “virtual assets may lose their value in full or in part, and are subject to extreme volatility,” the Virtual Assets Regulatory Authority said Thursday.

“We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market,” said VARA Chief Executive Officer Matthew White, referring to virtual asset service providers.

The UAE’s efforts mirror steps countries from Belgium to Singapore have taken in recent years to rein in crypto marketing. The UK last year banned so-called “refer a friend” bonuses that are popular in the industry. In Belgium, ads must now include a punchy disclaimer: “The only guarantee in crypto is risk.”

Firms offering incentives for virtual assets or related products in the UAE will have to receive a compliance confirmation from VARA, among other rules, such as the bonus not being used to “divert or mislead” investors from properly assessing the risk of the investment.

New Zealand, #UnitedArabEmirates reach trade pact | Reuters #UAE

New Zealand, United Arab Emirates reach trade pact | Reuters

New Zealand on Thursday reached a trade deal with the United Arab Emirates, which it said would unlock economic opportunities for exporters and boost supply chains with one of its most important trading partners in the Middle East.

The trade deal will remove duties on 98.5% of New Zealand's exports with that proportion expected to rise to 99% within three years, Trade Minister Todd McClay said in a statement.

"This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years," McClay said.

Two-way trade between the countries was valued at NZ$1.3 billion ($813.5 million) in the year to June 2024.

The agreement was concluded in over four months following the beginning of talks in May, making this New Zealand's fastest-ever trade agreement negotiation, McClay said.

Australia and the UAE concluded a similar trade deal earlier this month.

#SaudiArabia to drop $100 crude target to win back market share, FT reports | Reuters

Saudi Arabia to drop $100 crude target to win back market share, FT reports | Reuters

Saudi Arabia is preparing to abandon its unofficial $100 a barrel oil price target as it gets ready to raise output to win back market share, even if it means lower prices, the Financial Times reported on Thursday.

The Organization of the Petroleum Exporting Countries (OPEC), which is de facto led by Riyadh, has been cutting oil output to support prices along with allies including Russia, who are together known as OPEC+.

However, prices are down nearly 5% so far this year, amid increasing supply from other producers, especially the United States, as well as weak demand growth in China.

Earlier this month, OPEC+ agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, saying it could further pause or reverse the hikes if needed.

The FT, citing people familiar with Saudi thinking, reported that Saudi Arabia is committed to the group raising production as planned on Dec. 1, even if that means a longer period of low oil prices.

Global crude benchmark Brent was down about 1.7% to $72.25 at 1031 GMT following the FT report.

The Saudi government's communications office did not immediately return a request for comment.