Saudi PIF-Backed Cooling Firm Taps Citi, SNB Capital for IPO - Bloomberg
Saudi Tabreed District Cooling Co. is working with Citigroup Inc. and SNB Capital for a potential initial public offering in Riyadh, according to people familiar with the matter.
The firm, backed by the kingdom’s sovereign wealth fund and a United Arab Emirates company, could go public as soon as this year, two of the people said, asking not to be identified as the information isn’t public. No final decisions have been made, with details like size and exact timeline still under discussion, they said.
Representatives for the Public Investment Fund and SNB did not respond to requests for comment, while a Citi spokesperson declined to comment.
The PIF, as the wealth fund is known, acquired a 30% stake in Saudi Tabreed in 2022. The holding was valued at about $250 million, Bloomberg News had reported at that time.
The Dubai-listed National Central Cooling Co., also known as Tabreed, holds a 21.8% stake in its Saudi affiliate, according to its 2023 annual report.
Representatives for Tabreed didn’t respond to requests for comment, while spokespeople for the Saudi unit couldn’t be reached for comment.
The PIF is the main entity tasked with driving Crown Prince Mohammed Bin Salman’s ambitious plans to diversify the economy away from oil. With the kingdom projected to run deficits in the coming years, the wealth fund has been tapping the bond markets and selling stakes in portfolio companies to raise funds.
Apart from Saudi Tabreed, it’s lining up IPOs of the country’s biggest medical procurement firm and a major port operator, Bloomberg News has reported.
Overall, Saudi Arabia had IPOs worth more than $4 billion in 2024, and the pipeline for 2025 looks robust. The regulator recently greenlit planned offerings by technology services firm Ejada Systems Ltd., developer Umm Al Qura for Development & Construction Co. and financial services company Derayah Financial Co.
The Middle East, where temperatures often soar above 110 degrees Fahrenheit (43 Celsius) during the summer, is a big market for centralized cooling systems for buildings.
Thursday, 9 January 2025
Most Gulf markets ease on US economic data | Reuters
Most Gulf markets ease on US economic data | Reuters
Most stock markets in the Gulf were subdued on Thursday as signs of U.S. economic resilience dampened expectations for aggressive interest rate cuts in the near term.
The U.S. Federal Reserve's December policy meeting, released on Wednesday, showed officials were concerned that U.S. President-elect Donald Trump's proposed tariffs and immigration policies may prolong the fight against inflation.
Fed decisions have a significant impact on the Gulf region's monetary policy as most of the region's currencies are pegged to the dollar. Markets are fully pricing in just one 25 basis point rate cut in 2025, and see around a 60% chance of a second.
Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to nudge 0.1% higher, helped by a 3.9% jump in Dr Sulaiman Al Habib Medical Services (4013.SE), opens new tab.
Separately, the kingdom's crude oil supply to China is set to decline in February from the month before, trade sources said on Thursday, after it hiked its prices and as OPEC+ extended production cuts in the first quarter.
In Qatar, the index (.QSI), opens new tab dropped 0.1%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
The Abu Dhabi index (.FTFADGI), opens new tab finished flat.
Dubai's main share index (.DFMGI), opens new tab gained 0.4%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab rising 1.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1.2%, weighed down by a 2% slide in Commercial International Bank (COMI.CA), opens new tab.
Most stock markets in the Gulf were subdued on Thursday as signs of U.S. economic resilience dampened expectations for aggressive interest rate cuts in the near term.
The U.S. Federal Reserve's December policy meeting, released on Wednesday, showed officials were concerned that U.S. President-elect Donald Trump's proposed tariffs and immigration policies may prolong the fight against inflation.
Fed decisions have a significant impact on the Gulf region's monetary policy as most of the region's currencies are pegged to the dollar. Markets are fully pricing in just one 25 basis point rate cut in 2025, and see around a 60% chance of a second.
Saudi Arabia's benchmark index (.TASI), opens new tab reversed early losses to nudge 0.1% higher, helped by a 3.9% jump in Dr Sulaiman Al Habib Medical Services (4013.SE), opens new tab.
Separately, the kingdom's crude oil supply to China is set to decline in February from the month before, trade sources said on Thursday, after it hiked its prices and as OPEC+ extended production cuts in the first quarter.
In Qatar, the index (.QSI), opens new tab dropped 0.1%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
The Abu Dhabi index (.FTFADGI), opens new tab finished flat.
Dubai's main share index (.DFMGI), opens new tab gained 0.4%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab rising 1.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1.2%, weighed down by a 2% slide in Commercial International Bank (COMI.CA), opens new tab.
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