#SaudiArabia IPO (SMC) Draws $32 Billion In Orders After Dividend Reversal - Bloomberg

Saudi Arabia IPO (SMC) Draws $32 Billion In Orders After Dividend Reversal - Bloomberg

Saudi Arabia-based Specialized Medical Co. attracted about 121 billion riyals ($32 billion) in orders for its initial public offering, following a reset of its institutional order book after the company clawed back recently paid dividends.

The hospital operator’s offering was nearly 65 times oversubscribed, it said in a statement. That’s the lowest subscription multiple among recent IPOs in the kingdom.

Last week, SMC issued a revised prospectus disclosing that existing shareholders had agreed to return 200 million riyals in dividends. That move triggered a reopening of the institutional order book, allowing investors to revise or cancel orders. No new bids were accepted. The retail subscription period is scheduled for June 15 and 16.

SMC, as the company is known, is set to raise 1.9 billion riyals through the listing in Riyadh. The final offer price was set at 25 riyals per share, the top end of the marketed range, implying a market capitalization of approximately 6.3 billion riyals.

Shareholders are selling a 30% stake, or 75 million shares. The Company for Cooperative Insurance — known as Tawuniya — has agreed to purchase 5.9 million shares, or roughly 2.35% of the company’s post-offer equity, as a cornerstone investor.

SMC is working with SNB Capital and EFG Hermes on the IPO.

Hamza Lemssouguer’s Hedge Fund Arini Plans #AbuDhabi Office - Bloomberg

Hamza Lemssouguer’s Hedge Fund Arini Plans Abu Dhabi Office - Bloomberg

Former Credit Suisse star trader Hamza Lemssouguer is preparing to expand his hedge fund operations to Abu Dhabi, joining the rush of peers opening offices in the United Arab Emirates.

Arini, which oversees about $9 billion in assets, intends to have the outpost ready in September and has sought regulatory approvals, people with knowledge of the matter said, asking not to be identified because the details are private.

The Abu Dhabi operation will be run by Jeysson Abergel, Arini’s London-based head of trading, and will be staffed with existing investment and non-investment professionals who are relocating, one of the people said.

Representatives for Arini and ADGM, Abu Dhabi’s financial freezone, declined to comment.

London-based Arini is the latest hedge fund to join a growing number of investment outfits making a beeline for Dubai and Abu Dhabi. The UAE’s tax-free status, deep-pocketed sovereign wealth funds and favorable time zones have helped the two emirates transform into an emerging hub for hedge funds.

While multistrategy hedge funds have the biggest footprint in the UAE, Arini’s expansion adds to the diversity of asset managers moving to the region.

Lemssouguer, 34, made a name for himself at Credit Suisse with stellar returns from high conviction bets on high-yield debt and credit default swaps. During his time at the Swiss lender, the Moroccan-born trader generated a gross annualized return of 38%, including 81% in 2019 and 44% in 2020, Bloomberg News has reported.

Arini — named after the parrots Lemssouguer breeds — generated 5.4% return in May to boost year-to-date gains in its Credit Master Fund to almost 10%, the person added. Credit hedge funds tracked by Bloomberg were up 1.4% during the first four months of the year.

Returns (%)	2025*	2024	2023	2022
Arini Credit Master Fund	10%	22.2	25.8	4
*through May

Arini, which employs 90 people globally, also opened an office in New York in 2023.

GlobalFoundries to Spend $16 Billion to Boost US Chip Production - Bloomberg #AbuDhabi #UAE

GlobalFoundries to Spend $16 Billion to Boost US Chip Production - Bloomberg

GlobalFoundries Inc., the biggest US-based provider of made-to-order chips, announced a plan to spend $16 billion to bolster domestic production.

The company is budgeting $13 billion to expand existing plants in New York and Vermont and making a further $3 billion commitment to research into advanced packaging and other technologies in the US, it said in a statement Wednesday.

GlobalFoundries is the latest company to publicly commit billions to increasing US production of electronics — announcements that President Donald Trump has touted as evidence that his policies are succeeding. The chipmaker said it’s making the investments with the endorsement of customers such as Apple Inc., Qualcomm Inc. and General Motors Co.

New Chief Executive Officer Tim Breen said the company isn’t providing a detailed breakdown of when the cash will be spent and will remain flexible in order to match supply with demand. The emphasis on the US is “a recognition of where there is the most unmet demand today,” he said in an interview.

Chip customers are looking for more local production and want to reduce dependence on suppliers that have their manufacturing concentrated in one location, Breen said.

“Supply security matters,” he said. Requests for more production out of US plants have increased during the last six months, he said.

Globalfoundries, based in Malta, New York, manufactures so-called essential chips for semiconductor and electronics makers. Such components don’t require the most advanced production, but they do handle vital tasks, such as controlling power and managing the flow of data inside devices.

The AI boom also is increasing demand for a variety of chips. The GlobalFoundries investment is “a strategic response to the explosive growth in artificial intelligence,” the company said. The market has boosted the need for power-efficient and high-bandwidth chips used in data centers and communications equipment.

The company, which is majority-owned by the government of Abu Dhabi, had previously been more conservative in its investment plans, saying it would only add capacity when supported by demand. On average, it’s spent about $1.4 billion on new plants and equipment annually over the last five years. That’s a fraction of the multiple tens of billions that companies like Intel Corp. and Samsung Electronics Co. have spent.

Globalfoundries was created by merging the former manufacturing operations of Advanced Micro Devices Inc. with Chartered Semiconductor — a deal that provided the new business with plants in the US, Germany and Singapore. The company gave up on trying to compete with Taiwan Semiconductor Manufacturing Co. in the market for the most advanced production and has instead focused on cheaper techniques needed for other types of chips — components it says are becoming increasingly valuable.

GlobalFoundries says it’s carving out lucrative niches of the semiconductor industry. That includes an effort to combine chips with optical data components and an alternative material for power management chips, called gallium nitride.

#SaudiArabia’s IPO Momentum Faces Challenge From Weak Debuts - Bloomberg

Saudi Arabia’s IPO Momentum Faces Challenge From Weak Debuts - Bloomberg

Dour debuts, combined with a slump in Saudi Arabia’s stocks and two pulled listings on the parallel exchange, threaten to take the sheen off a market that has been among the world’s hottest for new share sales in recent years.

Al Khaldi Logistics Co. and Dome International Investment Co. canceled their planned share sales on the parallel market — Nomu — on Tuesday, without specifying a reason. That came just days after a muted trading debut for United Carton Industries Co., which has since lost nearly a fifth of its value following its initial public offering.

Saudi stocks ended May as the worst performers globally, pressured by falling oil prices and concerns about slower spending on mega-projects. Still, companies raised more than $1.3 billion from new share sales during the month.

The parallel market has been particularly active, with 10 deals since April — up from four during the same period last year. But secondary performance hasn’t kept pace. The Nomu Parallel Market Capped Index is down over 13% year-to-date, underperforming the benchmark Tadawul All Share Index, which has fallen about 9%.

Seen as a fertile testing ground for smaller, high-growth firms eying eventual progression to the main exchange, the Nomu may be falling victim to its own success.

“The recent success of Nomu listings and transitions to the main market may have led promoters to chase valuations out of sync with current sentiment,” said Nishit Lakhotia, head of research at SICO Bank. “Appetite for IPOs at any valuation is no longer there.”

Low-cost carrier Flynas Co.’s trading debut, expected in the coming weeks, will be the next big test. The largest Middle Eastern IPO so far this year attracted over $100 billion in orders.

Airlines remain a niche play in the region, with just two publicly listed carriers. Based on their performance this year — Jazeera Airways Co. is up 58% and Air Arabia PJSC 17% — Junaid Ansari, director of investment strategy at Kamco Invest, expects Flynas to make a strong debut.

“That said, global and regional markets have remained extremely volatile and fragile, and sensitive to the ever-changing news related to tariffs,” he said.

Saudi companies looking to launch listings - Ejada Systems Ltd., Dar Al Majed Real Estate Co., Marketing Home Group Co. and Sports Club Co. — all have regulatory approval to go public on the main market, and may have to be cautious with valuations.

“There could be some delays naturally and valuations can become more palatable,” Lakhotia said. “But I do expect the market to become active after summer given the strong pipeline.”

#Dubai party hotel FIVE considers listing in London or New York | Reuters

Dubai party hotel FIVE considers listing in London or New York | Reuters

Dubai party hotel operator FIVE Holdings is considering listing in London or New York, three people with knowledge of the matter said.

The company, which owns the Pacha hotel and nightclub, has been exploring an initial public offering in Dubai, it has said.

Chairman and founder Kabir Mulchandani said last year the company was worth up to $3 billion and was considering a dual listing. He did not name possible locations.

London could be a strong candidate given a majority of clients at FIVE's Ibiza clubs are British nationals and that business generates significant revenues for the group, one of the people said. An offering would be a boost for London, which has struggled to attract IPOs.

FIVE did not respond to requests for comment.

Dubai is the biggest tourism and trade hub in the Middle East, attracting a record 18.7 million international overnight visitors last year.

Foreign investors accounted for 50% of the total trading value on the Dubai Financial Market exchange last year, exchange data showed.

The company and its advisers are planning to start the listing process by the end of the year, two of the people said. The three people spoke on condition of anonymity because they were not authorised to speak publicly.

FIVE operates luxury hotels in Ibiza and Switzerland as well as owning one of Dubai's biggest party hotels, where guests can park their top-of-the-range sports cars inside a nightclub for Dhs10,000 ($2,723). Guests can also rent its 16-passenger private jet for $14,000 an hour.

This year's market volatility, triggered by U.S. President Donald Trump's policies, has weighed on global IPO activity, but the Gulf region has bucked the trend as both Saudi Arabia and the UAE have forged ahead with listing plans.

They include Saudi budget airline flynas, which is seeking to raise over $1 billion, and Dubai Holding's residential REIT, whose shares rose almost 15% during its debut on Wednesday.

#UAE non-oil business growth slows in May, PMI shows | Reuters

UAE non-oil business growth slows in May, PMI shows | Reuters

Growth in the UAE's non-oil private sector slowed to its weakest pace in nearly four years in May, a survey showed on Wednesday, as demand remained strong but eased from recent highs.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) fell to 53.3 in May from 54.0 in April, marking its lowest reading since September 2021, but remained above the 50.0 threshold that indicates growth.

The rate of expansion in output was the slowest in 44 months in May, reflecting softening momentum in the non-oil sector even though demand conditions remained supportive.

The sub index for output fell to 57.3 in May from 59.4 in April, and was the lowest reading since September 2021. The pace of new order growth remained robust but the sub index dropped to 56.2 in May from April's 56.9 reading, and was the softest in seven months.

"Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth," David Owen, senior economist at S&P Global Market Intelligence, said.

The survey highlighted a record decline in inventories as firms streamlined holdings amid slowing growth. The accumulation of backlogs eased to a 16-month low, indicating a softer pace of demand.

Business expectations for future output were subdued, with optimism falling to its lowest level since January.

Dubai's non-oil private sector growth remained steady, with the headline PMI at 52.9 in May, the same as April, although demand momentum strengthened with the pace of new order growth quickening to a four-month high.

Most Gulf markets rise, #Dubai's main index hits over 17-year high | Reuters

Most Gulf markets rise, Dubai's main index hits over 17-year high | Reuters

Most Gulf share indexes ended higher on Wednesday, tracking steady oil prices as a hit to Canadian supply from wildfires offset a hit from ongoing OPEC+ output increases.

Dubai's main share index hit its highest levels since 2008 and settled 0.25% higher, with real estate financier Amlak Finance (AMLK.DU), opens new tab the top gainer on the index with a 14.6% rise.

The index has been recording gains each year since 2021. It rose 27% last year and is up 7% so far this year.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab followed the trend, closing 0.45% higher. The index recorded a second consecutive session of gains.
Oil prices - a catalyst for stock markets in the Gulf - held steady, with Brent crude futures rising 0.1% to $65.59 a barrel by 1203 GMT.

The OPEC+ group recently decided to increase output by 411,000 barrels per day, a similar increase from the prior two months. Meanwhile, Canada's wildfires have reduced production by 344,000 bpd, according to Reuters calculations.

A possible call between U.S. President Donald Trump and Chinese leader Xi Jinping also dominated market sentiment, with investors continuing to focus on the pace of trade negotiations.

Saudi Arabia's benchmark stock index (.TASI), opens new tab settled 1.59% higher, with Arabian Pipes Company (2200.SE), opens new tab jumping 35.15%. The welded steel pipes manufacturer approved an increase of its share capital to 200 million SAR ($53.32 million) at an extraordinary meeting last day.

JP Morgan also said on Tuesday that the kingdom is expected to issue $12.6 billion in bonds until year-end. Companies in Saudi Arabia have been tapping debt markets, with state oil giant Aramco (2222.SE), opens new tab raising $5 billion in bonds last week. Aramco settled flat on Wednesday.

Qatar's benchmark stock index (.QSI), opens new tab finished 0.56% lower, with Commercial Bank (COMB.QA), opens new tab falling 2.45%.

Data from Qatar's finance ministry showed that the country recorded a budget deficit of 0.5 billion Qatari riyals ($137.32 million) in the first quarter of 2025 and total revenue of 49.9 billion Qatari riyals, down 7.5% from the same period last year.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 1%, with automotive company GB Corp (GBCO.CA), opens new tab rising 7.29%. The index recorded a second consecutive session of gains.

Wednesday also marks the deadline for countries to submit their best proposals for trade deals with the United States to avoid Trump's hefty tariffs.

All Gulf stock markets will be closed on Thursday as the countries will be observing the Day of Arafat.

#AbuDhabi minerals company buys DR Congo tin mine stake from Denham arm #UAE

Abu Dhabi minerals company buys DR Congo tin mine stake from Denham arm

Abu Dhabi minerals company International Resources Holding has bought a majority stake in a tin mine in the Democratic Republic of Congo, expanding its presence in Africa and underscoring its appetite for high-risk jurisdictions. 

IRH, part of the sprawling business empire of United Arab Emirates national security adviser Sheikh Tahnoon bin Zayed al-Nahyan, bought a 56 per cent stake in Toronto-listed Alphamin Resources from a subsidiary of US private equity group Denham Capital for about $367mn. 

The company controls the giant Bisie tin mine in the war-torn eastern DR Congo, which was forced to close temporarily earlier this year, causing a brief surge in global tin prices. It resumed operations last month. 

The mine accounts for about 7 per cent of global tin production, which is used in soldering, food cans and batteries, and the deal highlights the eagerness of oil-rich Gulf countries to gain a foothold in critical minerals. 

Sheikh Tahnoon, a full brother of the UAE’s president, is one of Abu Dhabi’s most powerful royals. IRH burst on to the mining scene in 2023 when it bought a majority stake in a Zambian copper mine for $1.1bn. 

The company was previously involved in a gold trading operation in the DR Congo, but Syed Basar Shueb, the chief executive of its parent, International Holding Company, told the Financial Times last year that IRH had handed that over to DR Congo’s government. 

UAE president Sheikh Mohammed bin Zayed al-Nahyan met DR Congo president Felix Tshisekedi twice last year on official visits, and the UAE expressed “deep concern” over the conflict in eastern DR Congo earlier this year. 

As part of the deal with Alphamin, IRH will gain “offtake rights” that will allow it to trade some of the mine’s output, according to people close to the transaction. The group has been building up its 60-person trading team to handle energy and metals. 

IRH bought the shares from Tremont Master Holdings, a subsidiary of Denham, for C$0.70 (51 US cents) per share, a discount of about 25 per cent compared with Alphamin’s average share price over the past month. 

The sale came as a surprise to US and Congolese officials who were negotiating a deal to secure US access to critical minerals, in return for support from Washington in bringing peace to the region. 

Maritz Smith, chief executive of Alphamin, said that he had not had “any engagement” with IRH yet. “The mine restart has gone well,” he said, referring to the resumption of operations in May. 

The region around the mine has been wracked by conflict, as the M23 rebel group that is understood to be backed by Rwanda has occupied a swath of territory in eastern DR Congo since January. 

Earlier this year, the US helped to broker an agreement that led to Rwandan-backed insurgents withdrawing from the area near the Bisie mine, allowing it to restart, according to people close to the talks. 

Ali AlRashdi, chief executive of IRH, said in a statement that the deal “aligns with our strategy of securing interests in high-quality mining assets with long-term growth potential”.