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The Kuwait Investment Authority was the undisclosed shareholder behind the HK$26.8 billion ($3.4 billion) sale of a stake in insurer AIA Group Ltd., people with knowledge of the matter said.
The sovereign wealth fund offloaded a 3.7% stake in Hong Kong-based AIA through a series of block trades, the people said, asking not to be identified because the information is private.
The 394.4 million shares were sold at HK$68 apiece, according to data compiled by Bloomberg. That’s a discount of 6% from AIA’s Thursday close in Hong Kong, and the insurer’s shares dropped 4.4% on Friday. Bloomberg News reported earlier that a single unidentified seller was behind the trades.
A representative for KIA said the fund doesn’t comment on its investment activities. A spokesperson for AIA didn’t immediately respond to queries outside regular business hours.
It’s Hong Kong’s fourth-largest share sale this year, according to data compiled by Bloomberg. The deal comes amid a pick-up in deals in the city, which was the world’s second-largest market for equity offerings in the first half.
Two Saudi Arabian fintechs are preparing to list in Riyadh, people familiar with the matter said, looking to tap into growing demand for such services in the kingdom.
Emkan Finance Co. has hired Morgan Stanley and Al Rajhi Capital to advise on an initial public offering, the people said, declining to be identified as the information is private. The firm — owned by Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets — offers small loans and credit cards to individuals, and reported a net income of 887 million riyals ($236 million) in 2024.
Tamweel Al Oula Co., which provides retail and corporate financing, is also preparing for a public share sale, some of the people said. The company reported a profit of 181 million riyals last year.
Representatives for Al Rajhi Bank, Al Rajhi Capital and Morgan Stanley declined to comment. Representatives for Tamweel Al Oula could not be reached for comment.
Saudi Arabia has been accelerating efforts to diversify its economy and expand financial access under its Vision 2030 economic transformation plan. If Emkan and Tamweel Al Oula list, they will join other consumer finance businesses tapping equity capital markets in the country as it opens up and consumer choices across leisure and entertainment broaden.
One window into the shift: nearly half of Saudi fitness club operator Sport Clubs’ sales came through buy-now-pay-later providers in the first nine months of 2024, up from just 18% in 2022. The sharp rise reflects how installment-based payments are gaining ground in day-to-day spending.
Saudi Arabia has hosted a handful of fintech listings in recent years, many of which have delivered strong early gains. United International Holding Co., which owns Shariah-compliant consumer finance firm Tasheel, raised $264 million last year. The stock is up more than 18% since its listing in December, defying softness in broader Saudi equities.
Some of Aramco's operations across the Eastern province of Saudi ArabiaSaudi oil giant Aramco (2222.SE), opens new tab is looking to sell up to five gas-fired power plants, three sources with knowledge of the matter told Reuters, part of a broader effort to free up funds that could generate tens of billions of dollars.
The potential sale of four or five gas-fired plants that power refineries could alone raise around $4 billion as the Saudi government pushes Aramco to increase profits and payouts to the state, two of the sources said.
Aramco, the world's most profitable company and the main source of Saudi state income, has been looking to sell some assets, improve efficiency and cut costs, Reuters has reported.
The company will also slash dividend payouts by nearly a third this year as lower oil prices hit its income.
The state, which directly owns 81.5% of Aramco, is heavily reliant on the payouts, which include royalties and taxes.
Besides the sale of the gas-fired plants, the company could divest assets such as housing compounds and pipelines, two of the sources said. Port infrastructure assets could also be up for sale, one of them and a third person said.
Aramco declined to comment on the potential asset sales and had no immediate comment on the amount of money the fundraising drive could yield.
The Saudi government communications office did not respond to Reuters requests for comment.
Reuters could not determine a timeline for the sale. The three sources spoke on condition of anonymity because the process is private.
Local businesses like Saudi utility firms could be interested buyers, one of the people said.
Aramco fully or partly owned 18 power plants and related infrastructure locally supplying energy to its gas plants and refineries, according to its 2024 financial report.
Other power plants are expected to come onstream soon. The Tanajib Gas Plant project is expected to start operations this year.
The potential asset sales by Aramco coincide with Saudi Arabia Crown Prince Mohammed bin Salman's planned massive domestic projects to diversify the economy from oil while facing pressure from tumbling crude prices.
Oil receipts made up 62% of state revenues last year with the Saudi budget showing a deficit of more than $30 billion in 2024 despite a $199 billion windfall from Aramco.
Aramco sold $5 billion of bonds in May and signalled more borrowing.
The country is pouring hundreds of billions of dollars into projects including showpiece events like the Expo 2030 world fair and soccer's FIFA World Cup 2034. Aramco is also seeking to raise funds for infrastructure by bringing in investors, Reuters reported in May.
Stock markets in the United Arab Emirates closed slightly higher on Friday, buoyed by easing geopolitical tensions and cautious optimism around a potential ceasefire deal between Israel and Hamas as well as Iran's commitment to nuclear non-proliferation. Iran remains committed to the nuclear Non-Proliferation Treaty and its safeguards agreement, Foreign Minister Abbas Araqchi said on Thursday, a day after Tehran enacted a law suspending cooperation with the U.N. nuclear watchdog.
Israeli officials said prospects for reaching a ceasefire and hostage deal appeared high, nearly 21 months since the war between Israel and Hamas began.
In Dubai, the main stock index ended the day 0.1% higher after spending most of the session in negative territory. The late recovery was driven by a 1.3% gain in Emirates NBD Bank and a 1.2% rise in Dubai Investments. However, Taaleem Holdings, a major operator of international schools, fell 1.2% after reporting a 5% drop in third quarter net profit to 82.03 million dirhams ($22.33 million).
Abu Dhabi’s benchmark index also edged up 0.1%, supported by strong performances in AI and next-generation technology stocks. Presight AI, a big data analytics firm, surged 14.9% to an all-time high of 3.9 dirhams per share since its listing in March 2023. Space42, an AI-powered space technology company, jumped 10.4%, marking its biggest intraday gain since May 2023.
According to Traze CEO Erkin Kamran, AI and tech stocks are likely to remain in favour as the UAE accelerates its push to become a global AI hub.
Easing U.S.-China trade tensions and reduced restrictions on AI exports are also expected to attract more investor interest in the sector. For the week, the Abu Dhabi and Dubai indexes logged 1% and 1.2% gains respectively, according to LSEG data.
Oil prices - a key catalyst for the Gulf's financial markets - drifted lower on Friday as eight OPEC+ countries are likely to make another accelerated oil output increase for August at a meeting on Saturday, sources from the producer group told Reuters, as they seek to regain market share. Brent crude was down 0.7% at $68.29 a barrel by 1204 GMT.
