Oil & Gas Adnoc L&S bags $975m EPC contract for ‘artificial island’ The newly-listed Abu Dhabi National Oil Company (Adnoc) logistics subsidiary has secured a $975 million contract to build an artificial island. The contract – the first major award for Adnoc Logistics and Services (Adnoc L&S) after being listed on the Abu Dhabi Securities Exchange (ADX) on June 1 – was awarded by Adnoc Offshore. The award is […] June 8, 2023
Analysis Banking & Finance Mid-cap stocks offer best dividend yields in Gulf Dividend-seeking Gulf investors are likely to find little value among the region’s blue-chip stocks and should instead target mid-cap companies with steady cash flows and low debt, experts suggest. When interest rates hovered near zero and average dividend yields on GCC stocks were around 4 percent, the difference with the risk-free rate – the return […] June 2, 2023
Logistics Adnoc Logistics & Services shares surge on debut Shares in Adnoc Logistics & Services rose 44.8 percent above their listing price on Thursday as the company made its debut on the Abu Dhabi Securities Exchange (ADX). The initial public offering (IPO) for 19 percent of the business drew the highest demand globally for any listing so far in 2023, raising $769 million. Shares […] June 1, 2023
Retail Brands for Less denies stake sale speculation UAE retail group Brands for Less (BFL Group) has denied reports that it plans to sell a minority stake in the business. A statement on Thursday said: “While the company, on an ongoing basis, reviews its options to further enhance growth, customer reach and customer service, there are no current plans for a sale of […] June 1, 2023
Transport Dubai considers taxi operator IPO as sector surges Dubai is considering a stock market listing for its taxi operator, as the sector surges back to pre-pandemic levels and attracts local and international investment. The emirate’s Roads and Transport Authority (RTA) is in the early stages of considering listing the Dubai Taxi Corporation (DTC) as the latest state-backed entity to list on the Dubai […] May 31, 2023
Energy Aramco dividends outstrip rival blue-chips Saudi Aramco’s payouts of dividends surpass those of other leading global companies, and the world’s top oil producer provides sizeable returns for its shareholders in monetary terms. Aramco listed on Riyadh’s bourse in December 2019 following a $29.4 billion initial public offering that sold around 1.7 percent of the government-owned company’s stock. Since then, it […] May 31, 2023
Retail eXtra says IPO is an option for consumer finance unit Saudi retailer United Electronics Company (eXtra) is evaluating strategic options concerning its Shariah-compliant consumer finance business, including the possibility of an initial public offering (IPO). In a statement to the Saudi Exchange (Tadawul) on Tuesday, the electronics major said that decision regarding these strategic options for United Company for Financial Services (Tasheel) are still subject […] May 30, 2023
Economy Pharma IPO set to be Saudi’s largest listing this year Saudi’s Jamjoom Pharmaceuticals looks set to raise SAR1.26 billion ($336 million) when it lists later this year, putting it on course to become the kingdom’s biggest IPO in 2023. The manufacturer’s final offer price has been set at SAR60 per share. It was at the top of a range that started at SAR56, implying a […] May 26, 2023
Logistics Adnoc Logistics & Services IPO order book hits $125bn The order book for the initial public offering (IPO) of Adnoc Logistics & Services (Adnoc L&S) reached over $125 billion, hitting an oversubscription level of 163 times. This is the highest-ever oversubscription of a UAE bookbuild IPO, Abu Dhabi National Oil Company (Adnoc) said in a statement. The IPO was priced at the top of […] May 26, 2023
Energy Taqa and Adnoc pair up on $2.4bn seawater project Adnoc and Taqa, two of the UAE’s largest energy companies, have announced a $2.4 billion project to treat seawater and deliver sustainable water supplies to onshore operations. Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi National Energy Company, better known as Taqa, will jointly hold a 51 percent majority stake (25.5 percent each) in […] May 24, 2023
Banking & Finance Dubai’s debt burden set to tumble to 51% of GDP Dubai’s government debt is forecast to fall to 51 percent of GDP this year, according to S&P Global Ratings, after the emirate repaid some of its outstanding bonds and loans. The figure is down 27 percentage points from a 2020 peak, the ratings agency wrote in a report published on Monday. Yet broader public sector […] May 24, 2023
Markets Qatar fund steps in to up trading on Doha bourse Qatar Investment Authority will provide up to QAR1 billion ($274.7 million) to fund a programme for the country’s stock exchange that it says will boost share trading, improve pricing and help attract more foreign investors. Such market making programmes are pivotal to the functioning of many stock markets by guaranteeing they will always buy or […] May 23, 2023
Markets Adnoc ups IPO of maritime logistics unit to 19% Abu Dhabi National Oil Company (Adnoc) has increased the stake size in its maritime logistics subsidiary’s initial public offering (IPO) following high investor demand. The oil company will now offer 19 percent of Adnoc Logistics & Services (Adnoc L&S) in the IPO, up from 15 percent, potentially raising $769 million based on the top end […] May 23, 2023
Markets Saudi aims for 24 IPOs on Tadawul by end of 2023 Saudi Arabia hopes to list more than 24 companies on its stock exchange this year, the Capital Market Authority has said. The Saudi regulator’s annual report, released on Sunday, said the kingdom also plans to increase foreign investments in the Tadawul. By the end of 2023, it wants foreign owned shares to make up 16.5 […] May 22, 2023
Health Gulf insurers paid out only $80m in Covid death claims Gulf insurance firms paid out only around $80 million in Covid-19 death-related claims over the last three years, according to AGBI calculations based on industry data. The low amount in the Gulf reflects the low uptake of life insurance policies in the region, where the average life insurance penetration is only 0.1 percent compared with […] May 19, 2023
Markets Saudi’s First Milling sets price range for IPO Saudi Arabia’s First Milling Company has set the price range for its initial public offering at SAR55 to SAR60 ($14.67 to $16.00) per share, giving a market capitalisation between SAR3.05 billion and SAR3.3 billion at the time of listing. The IPO subscription, which started on May 18, will end on June 7, with the listing […] May 19, 2023
Energy New appointments to boost Aramco’s oil business growth Aramco has named Nasir Al Naimi as president of its upstream business and Mohammed Al Qahtani as president of its downstream business. Aramco president and CEO Amin Nasser said he expected these newly created positions to help drive operational and financial performance and support the oil firm’s ambition “to achieve net-zero Scope 1 and Scope […] May 18, 2023
Markets Saudi’s first privatised mill to offer 30% stake in IPO First Milling Company, the first mill to be privatised in Saudi Arabia, is planning to launch an initial public offering (IPO) on the Saudi Exchange (Tadawul). The company will offload 16.65 million shares, resulting in a free float of 30 percent of the flour milling company’s share capital, it said in an IPO document. The […] May 18, 2023
Video length: 04:29 VIDEO Banking & Finance UAE family businesses: ‘bigger cake, bigger problem’ Inefficient governance and incomplete succession planning are the two main challenges facing UAE family businesses, says the chairman of Dubai Chambers. Over the past 50 years family businesses have evolved from being small operations to multi-billion-dollar conglomerates. The sector now accounts for 60 percent of the country’s GDP. “The bigger the cake, the bigger the […] May 17, 2023
Markets Morabaha Marina plans to raise up to $83.4m in IPO Non-bank finance institution Morabaha Marina Financing Company plans to raise up to SAR312.9 million ($83.43 million) in an initial public offering (IPO) on the Saudi Exchange (Tadawul). The Riyadh-headquartered company intends to sell a 30 percent stake, or 21.4 million shares, at a price range between SAR13 and SAR14.6 per share. The final offer price […] May 15, 2023
Economy Salik profit down 4.1% despite record toll revenue Dubai toll operator Salik reported a 4.1 percent decrease in Q1 net profit, despite toll usage revenue hitting a record AED454 million ($124 million). Salik’s quarterly toll revenue was the highest since the start of operations in 2007 – representing an eight percent annual increase – but net profit stood at AED275 million mainly due […] May 12, 2023
Analysis Banking & Finance Tadawul and DFM are overvalued, data shows The companies that operate Dubai and Saudi Arabia’s bourses are providing investors with scant returns because of high valuations and low dividend yields following a prolonged Gulf stock trading slump. Dubai Financial Market (DFM) was the first Gulf bourse to go public, in 2007, while Boursa Kuwait and Saudi Tadawul Group followed suit in 2020 […] May 11, 2023
