Sport Clubs IPO: Saudi Fitness Firm Surges on Trading Debut - Bloomberg
Shares of Sport Clubs Co., a Saudi Arabia-based fitness operator, soared in their trading debut on Tuesday, bucking a streak of muted listings in the kingdom.
The stock rose to 9.3 riyals, up 24% from the offer price of 7.5 riyals, giving the company a market valuation of over 1 billion riyals ($266 million). The broader Saudi stock market fell. The IPO was priced at the top of its range and was 44.1 times oversubscribed, signaling strong investor demand despite a broader market slowdown.
This marks the first listing on the Saudi exchange in the third quarter and stands in contrast to a string of underwhelming IPO debuts earlier in the year.
It also comes at a time when weaker oil prices have weighed on investor sentiment. The strong debut could signal selective confidence in domestic, consumer-driven sectors aligned with Saudi Arabia’s Vision 2030 economic reforms, which emphasize sports and physical fitness.
Another upcoming Saudi IPO is Dar Al Majed Real Estate Co., known as Almajdiah. The company plans to offer 30% of its capital, with the subscription period for retail investors set for August 14–18. This IPO is expected to test whether the current positive momentum in Saudi listings can continue amid broader market pressures.
Gulf stock markets have had a mixed start to 2025 as investors weigh local growth against global economic uncertainty. UAE shares have performed well, helped by economic reforms and diversification. By contrast, Saudi stocks have faced pressure. Saudi Arabia’s steady growth in its non-oil economy, along with its low debt levels, gives it more room for spending if needed.
Tuesday, 22 July 2025
Winter Is Coming for Oil — And Not in a Positive Way - Bloomberg
Winter Is Coming for Oil — And Not in a Positive Way - Bloomberg
The oil market is deceptively calm. Below the apparent tranquility lies an underappreciated transformation that has slowly reshaped the market over the last 25 years — because the arrival of China and India as big consumers hasn’t just given an enormous boost to demand, it’s also altered the market’s seasonality. And that matters a lot this year.
Until recently, global oil demand peaked every year with the arrival of the Northern Hemisphere’s winter. As temperatures dropped from October onward, heating oil and kerosene consumption spiked from the US to Germany to Japan. Hence, as recently as 2014, the fourth quarter still marked the annual high for crude demand and, typically, prices. Since then, the seasonality has flipped: Now, the third quarter sees higher demand and prices.
The shift means the market is now at its tightest from July to September, rather than October to December. While one-time events can still have an effect — the 2008 global financial crisis, for example, or the Covid-19 pandemic that started in early 2020 — looking over a long enough timescale reveals the change clearly. Because it happened incrementally over a quarter of a century, it often doesn’t get the attention it deserves. But the chart below makes it obvious.
The change has three notable features. First, consumption of winter fuels including heating oil and kerosene is on a structural decline in the industrialized world, replaced by natural gas and electricity. Back in 1990, about 17% of American families heated their homes by burning some kind of refined petroleum product; today, that share has fallen to 9%. The collapse in demand for heating oil in Europe is even more pronounced. At the same time, jet-fuel consumption in those regions, which typically peaks during the summer holidays, is growing fast.
Second, oil demand in fast-growing emerging nations follows different seasonal patterns, partly because of their locations closer to the equator, but also because of the larger role of their all-year-round industrial oil consumption. While industrialized nations mostly abandoned oil-fired power stations after the 1970s energy crisis, some emerging market countries, particularly in the Middle East, burn lots of crude for electricity generation and water desalination. At the peak last summer, Saudi Arabia burned more than 800,000 barrels a day to generate electricity for air conditioning — more than the daily total petroleum demand of Belgium.
And third, climate change is reducing heating consumption by making winters warmer, and boosting holiday travel by making summers hotter.
So this year, global third-quarter oil demand will be 500,000 barrels a day higher than fourth-quarter consumption. In a dataset going back to 1991, the current year will mark only the fifth time when winter demand will be lower than summer consumption.
Despite rising production from the OPEC+ cartel, oil prices have stabilized in recent weeks at just over $65 a barrel — about $10 above the lows seen in early May. If anything, the physical oil market even feels a bit tight. It helps that China has mopped up much of the oil surplus, putting in May and June barrels into its expanding strategic and commercial stockpiles.
But the squeeze will prove temporary; put another way, the market is defying gravity. Because of shifting seasonality, the Northern Hemisphere’s summer is now the tightest period of the year. Winter — and an accompanying decrease in demand — is coming.
For now, the few remaining oil bulls have a few straws of hope to cling to. Global crude refinery intake is rising swiftly this month and looks set to peak in August at a record 85.4 million barrels a day — enough to absorb the series of OPEC output increases. As a result, global oil stocks aren’t increasing meaningfully near where it matters most to the market: the pricing points in northwestern Europe, home of the Brent benchmark, and the central area of the US, home to the West Texas Intermediate yardstick.
But by October, when all of the cartel’s supply hikes will have arrived, along with extra oil from Brazil, Guyana and Canada, refinery throughput will drop to 81.7 million barrels a day, according to the International Energy Agency. The difference – 3.7 million barrels a day – is equal to a couple of mid-sized OPEC nations. Even if China continues stockpiling as much as it has done over the last two months, the surplus would be so large that oil will flow into inventories elsewhere, including near the pricing points on both sides of the Atlantic.
For sure, the market – and I – may be wrong about demand, supply, or both. The expected oil surplus during the now seasonally weaker fourth quarter may be smaller than anticipated. Still, on paper, the glut is so big that even if it turns to be a bit smaller, it would still be enough to put a lot of downward pressure on the market.
As I said, winter is coming for the oil market.
The oil market is deceptively calm. Below the apparent tranquility lies an underappreciated transformation that has slowly reshaped the market over the last 25 years — because the arrival of China and India as big consumers hasn’t just given an enormous boost to demand, it’s also altered the market’s seasonality. And that matters a lot this year.
Until recently, global oil demand peaked every year with the arrival of the Northern Hemisphere’s winter. As temperatures dropped from October onward, heating oil and kerosene consumption spiked from the US to Germany to Japan. Hence, as recently as 2014, the fourth quarter still marked the annual high for crude demand and, typically, prices. Since then, the seasonality has flipped: Now, the third quarter sees higher demand and prices.
The shift means the market is now at its tightest from July to September, rather than October to December. While one-time events can still have an effect — the 2008 global financial crisis, for example, or the Covid-19 pandemic that started in early 2020 — looking over a long enough timescale reveals the change clearly. Because it happened incrementally over a quarter of a century, it often doesn’t get the attention it deserves. But the chart below makes it obvious.
The change has three notable features. First, consumption of winter fuels including heating oil and kerosene is on a structural decline in the industrialized world, replaced by natural gas and electricity. Back in 1990, about 17% of American families heated their homes by burning some kind of refined petroleum product; today, that share has fallen to 9%. The collapse in demand for heating oil in Europe is even more pronounced. At the same time, jet-fuel consumption in those regions, which typically peaks during the summer holidays, is growing fast.
Second, oil demand in fast-growing emerging nations follows different seasonal patterns, partly because of their locations closer to the equator, but also because of the larger role of their all-year-round industrial oil consumption. While industrialized nations mostly abandoned oil-fired power stations after the 1970s energy crisis, some emerging market countries, particularly in the Middle East, burn lots of crude for electricity generation and water desalination. At the peak last summer, Saudi Arabia burned more than 800,000 barrels a day to generate electricity for air conditioning — more than the daily total petroleum demand of Belgium.
And third, climate change is reducing heating consumption by making winters warmer, and boosting holiday travel by making summers hotter.
So this year, global third-quarter oil demand will be 500,000 barrels a day higher than fourth-quarter consumption. In a dataset going back to 1991, the current year will mark only the fifth time when winter demand will be lower than summer consumption.
Despite rising production from the OPEC+ cartel, oil prices have stabilized in recent weeks at just over $65 a barrel — about $10 above the lows seen in early May. If anything, the physical oil market even feels a bit tight. It helps that China has mopped up much of the oil surplus, putting in May and June barrels into its expanding strategic and commercial stockpiles.
But the squeeze will prove temporary; put another way, the market is defying gravity. Because of shifting seasonality, the Northern Hemisphere’s summer is now the tightest period of the year. Winter — and an accompanying decrease in demand — is coming.
For now, the few remaining oil bulls have a few straws of hope to cling to. Global crude refinery intake is rising swiftly this month and looks set to peak in August at a record 85.4 million barrels a day — enough to absorb the series of OPEC output increases. As a result, global oil stocks aren’t increasing meaningfully near where it matters most to the market: the pricing points in northwestern Europe, home of the Brent benchmark, and the central area of the US, home to the West Texas Intermediate yardstick.
But by October, when all of the cartel’s supply hikes will have arrived, along with extra oil from Brazil, Guyana and Canada, refinery throughput will drop to 81.7 million barrels a day, according to the International Energy Agency. The difference – 3.7 million barrels a day – is equal to a couple of mid-sized OPEC nations. Even if China continues stockpiling as much as it has done over the last two months, the surplus would be so large that oil will flow into inventories elsewhere, including near the pricing points on both sides of the Atlantic.
For sure, the market – and I – may be wrong about demand, supply, or both. The expected oil surplus during the now seasonally weaker fourth quarter may be smaller than anticipated. Still, on paper, the glut is so big that even if it turns to be a bit smaller, it would still be enough to put a lot of downward pressure on the market.
As I said, winter is coming for the oil market.
Mubadala, AXA IM Prime Take Stakes in Private Lender Hayfin - Bloomberg
Mubadala, AXA IM Prime Take Stakes in Private Lender Hayfin - Bloomberg
Mubadala Investment Co. and AXA IM Prime are taking minority stakes in leading European private credit lender Hayfin Capital Management, according to a statement seen by Bloomberg News.
The move follows the management buyout of London-based Hayfin earlier this year. Arctos Keystone, an investment manager that helped finance the deal, is distributing some of its stake to AXA IM Prime and Mubadala.
The transaction will not lead to any changes in Hayfin’s strategy, investment process, leadership or day-to-day operations, the statement said. AXA IM Prime is a business unit of AXA Investment Managers, which is part of the BNP Paribas Group.
The partnership “reflects our conviction in Hayfin’s platform and leadership team and reinforces our strategy of backing high-quality asset managers that deliver value to all their stakeholders,” said Omar Eraiqaat, deputy CEO of the credit and special situations platform at Mubadala, in the statement.
The $1.7 trillion private credit market is rapidly expanding as more institutional investors pile money into the asset class, which competes with high-yield bonds and leverage loans to finance deals.
Large financial institutions such as banks and insurers are looking to break further into the industry. Earlier this month, UK insurer Legal & General signed a private credit partnership with Blackstone Inc. that the two firms aim to grow to up to $20 billion over the next five years. A direct lending partnership between Wells Fargo & Co. and Centerbridge Partners has arranged $2 billion in deals since the start of this year, bringing its total amount deployed to-date to $4.8 billion, Bloomberg reported on Monday.
Hayfin, which has about €33 billion of assets under management, is one of the most prolific direct-lenders in Europe. Recent deals that the lender was involved in include unitranche loans to Belgian drugmaker SERB Pharmaceuticals and used car marketplace Constellation Automotive Group.
Tim Flynn, the co-CEO of Hayfin, said Mubadala and Axa IM Prime’s resources “will support Hayfin’s ongoing growth and delivery of value for our clients, investors, borrowers and sponsors.”
Mubadala Investment Co. and AXA IM Prime are taking minority stakes in leading European private credit lender Hayfin Capital Management, according to a statement seen by Bloomberg News.
The move follows the management buyout of London-based Hayfin earlier this year. Arctos Keystone, an investment manager that helped finance the deal, is distributing some of its stake to AXA IM Prime and Mubadala.
The transaction will not lead to any changes in Hayfin’s strategy, investment process, leadership or day-to-day operations, the statement said. AXA IM Prime is a business unit of AXA Investment Managers, which is part of the BNP Paribas Group.
The partnership “reflects our conviction in Hayfin’s platform and leadership team and reinforces our strategy of backing high-quality asset managers that deliver value to all their stakeholders,” said Omar Eraiqaat, deputy CEO of the credit and special situations platform at Mubadala, in the statement.
The $1.7 trillion private credit market is rapidly expanding as more institutional investors pile money into the asset class, which competes with high-yield bonds and leverage loans to finance deals.
Large financial institutions such as banks and insurers are looking to break further into the industry. Earlier this month, UK insurer Legal & General signed a private credit partnership with Blackstone Inc. that the two firms aim to grow to up to $20 billion over the next five years. A direct lending partnership between Wells Fargo & Co. and Centerbridge Partners has arranged $2 billion in deals since the start of this year, bringing its total amount deployed to-date to $4.8 billion, Bloomberg reported on Monday.
Hayfin, which has about €33 billion of assets under management, is one of the most prolific direct-lenders in Europe. Recent deals that the lender was involved in include unitranche loans to Belgian drugmaker SERB Pharmaceuticals and used car marketplace Constellation Automotive Group.
Tim Flynn, the co-CEO of Hayfin, said Mubadala and Axa IM Prime’s resources “will support Hayfin’s ongoing growth and delivery of value for our clients, investors, borrowers and sponsors.”
#SaudiArabia's Dar AlMajed plans to list 30% stake via IPO | Reuters
Saudi Arabia's Dar AlMajed plans to list 30% stake via IPO | Reuters
Saudi Arabia's Dar AlMajed Real Estate Company is planning to list a 30% stake on the Gulf country's main bourse through an initial public offering, it said on Tuesday, as more firms in the kingdom pursue a public listing.
The company is offering 90 million shares to investors and the final price for the offering will be determined through a book-building period running from July 29 to August 4, it said in a statement.
The company has appointed Saudi Fransi Capital (BSF Capital) as financial advisor for the IPO.
Saudi Arabia's Dar AlMajed Real Estate Company is planning to list a 30% stake on the Gulf country's main bourse through an initial public offering, it said on Tuesday, as more firms in the kingdom pursue a public listing.
The company is offering 90 million shares to investors and the final price for the offering will be determined through a book-building period running from July 29 to August 4, it said in a statement.
The company has appointed Saudi Fransi Capital (BSF Capital) as financial advisor for the IPO.
Most Gulf bourses fall on US tariff concerns, weaker oil | Reuters
Most Gulf bourses fall on US tariff concerns, weaker oil | Reuters
Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the European Union's trade deal with the United States ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.
The EU is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.
U.S. President Donald Trump's imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.
Saudi Arabia's benchmark index (.TASI), opens new tab retreated 1.3%, after snapping its longest downturn in nearly two years in the previous session as broad sector declines and weaker oil prices outweighed upbeat corporate earnings.
Al Rajhi Bank (1120.SE), opens new tab dropped 1% and oil giant Saudi Aramco (2222.SE), opens new tab decreased 0.5%.
Oil prices declined for a third consecutive session on concerns that a brewing trade war between major crude consumers, the U.S. and the EU, will curb fuel demand growth by reducing economic activity.
But Etihad Etisalat (7020.SE), opens new tab rose 1.9% after posting a 25% rise in second-quarter profit, while Saudi Automotive Services (4050.SE), opens new tab gained 1.5% following a more-than-twofold-jump in quarterly earnings.
Elsewhere, shares of Sport Clubs (6018.SE), opens new tab surged 24% on their market debut. Saudi Exchange allows 30% fluctuation limit for newly-listed stocks during their first three days of trading.
Dubai's main share index (.DFMGI), opens new tab eased 0.3%, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.
Index heavyweight Dubai Islamic Bank (DISB.DU), opens new tab dropped 1.2% while budget carrier Air Arabia (AIRA.DU), opens new tab fell over 3%, ending a five-session winning streak.
In Abu Dhabi, the index (.FTFADGI), opens new tab was under pressure as a wave of earnings releases this week kept many investors on the sidelines.
Qatar's stock index (.QSI), opens new tab reversed early losses to finish 1.1% higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.
Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank (QISB.QA), opens new tab soared 6%, rising for a fourth straight session after reporting upbeat results.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1%, pulling back from a record high.
Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the European Union's trade deal with the United States ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.
The EU is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.
U.S. President Donald Trump's imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.
Saudi Arabia's benchmark index (.TASI), opens new tab retreated 1.3%, after snapping its longest downturn in nearly two years in the previous session as broad sector declines and weaker oil prices outweighed upbeat corporate earnings.
Al Rajhi Bank (1120.SE), opens new tab dropped 1% and oil giant Saudi Aramco (2222.SE), opens new tab decreased 0.5%.
Oil prices declined for a third consecutive session on concerns that a brewing trade war between major crude consumers, the U.S. and the EU, will curb fuel demand growth by reducing economic activity.
But Etihad Etisalat (7020.SE), opens new tab rose 1.9% after posting a 25% rise in second-quarter profit, while Saudi Automotive Services (4050.SE), opens new tab gained 1.5% following a more-than-twofold-jump in quarterly earnings.
Elsewhere, shares of Sport Clubs (6018.SE), opens new tab surged 24% on their market debut. Saudi Exchange allows 30% fluctuation limit for newly-listed stocks during their first three days of trading.
Dubai's main share index (.DFMGI), opens new tab eased 0.3%, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.
Index heavyweight Dubai Islamic Bank (DISB.DU), opens new tab dropped 1.2% while budget carrier Air Arabia (AIRA.DU), opens new tab fell over 3%, ending a five-session winning streak.
In Abu Dhabi, the index (.FTFADGI), opens new tab was under pressure as a wave of earnings releases this week kept many investors on the sidelines.
Qatar's stock index (.QSI), opens new tab reversed early losses to finish 1.1% higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.
Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank (QISB.QA), opens new tab soared 6%, rising for a fourth straight session after reporting upbeat results.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1%, pulling back from a record high.
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