British pharmaceutical firm eyes dual listing on London, Tadawul

Cambridge-headquartered Atlantic Healthcare is planning a London listing. (Reuters)
Cambridge-headquartered Atlantic Healthcare is planning a London listing. (Reuters)
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Updated 28 May 2021

British pharmaceutical firm eyes dual listing on London, Tadawul

Cambridge-headquartered Atlantic Healthcare is planning a London listing. (Reuters)
  • Atlantic Healthcare has already begun a successful $50 million pre-IPO fundraising campaign

DUBAI: A British pharmaceutical company set to launch a primary initial public offering (IPO) on the London Stock Exchange later this year is aiming to follow up with a dual listing on the Saudi Stock Exchange (Tadawul) in 2022, its CEO told Arab News.

Cambridge-headquartered Atlantic Healthcare is a specialist pharmaceutical company that is working on developing drugs to treat inflammatory bowel disease and other rare gastrointestinal disorders. It currently has six promising clinical programs underway at various stages.

The company last year engaged the services of Saudi investment advisory firm BMG Financial Group. In late 2020, BMG gained Capital Market Authority approval for Atlantic Healthcare’s pre-IPO prospectus and has since been actively fundraising $50 million in the Kingdom.

“BMG developed interest across a broad range of institutions and family offices. We are now in due diligence with a number of parties,” Toby Wilson Waterworth, chief executive at Atlantic Healthcare, told Arab News, adding that while the fundraising has not yet closed and is still active, the $50 million target has already been “oversubscribed”.

Once the due diligence has been completed, the second phase will be a listing on the London Stock Exchange, and the third and final phase will be a secondary listing on Tadawul.

“We’re in the process of working to close the investment, and then the plan is to turn that into the IPO process. We’ve been speaking to a number of banks in London and in New York, and we’ve spoken to a number of banks in the Middle East,” Waterworth said.

“The plan to do the primary listing would be at the end of this year, maybe drifting into the beginning of 2022. And then, once we’ve done that, the plan would be to do the secondary listing,” he added.

Tadawul announced in September 2019 that it was to allow foreign companies to list on its exchange for the first time. If all goes to plan, Atlantic Healthcare could potentially be the first British company to dual list on Tadawul.

The success of Atlantic Healthcare’s IPO could also have wider implications. In the run-up to Saudi Aramco going public at the end of 2019 with its $25.6 billion IPO, there had been a long and competitive battle among global bourses to get the energy giant to launch a listing on a non-Saudi bourse, with London one of the most prominent potential partners.

Speaking at the Future Investment Initiative gathering in Riyadh in January, Crown Prince Mohammed bin Salman said Aramco could launch a second offering of shares in the near future. “This will yield a cash flow transferred to the Public Investment Fund (PIF) to be reinvested domestically and internationally for the benefit of Saudi citizens,” the crown prince said.

Yasir Al-Rumayyan, governor of the PIF and chairman of Aramco, said a few days earlier that the oil company could sell more “if market conditions are right.”

Waterworth believes that his company’s dual listing could set a precedent and give London a potential advantage in any future Aramco negotiations. “The London Stock Exchange is still keen to continue to build its international relationships. And it is keen to see the relationship with Tadawul develop,” Waterworth said.

Looking to the future, Waterworth believes that the success of the fundraising would value Atlantic Healthcare at around half a billion dollars and by the end of the decade, he is aiming to hit a revenue of around $2.5 billion per annum.

“We’ve got a vision for a highly profitable company. We are planning to go to market in the US and Europe and in the early part of the 2030s when we calculate internally that we have the potential to reach those sort of revenue numbers,” Waterworth said.

“At the moment, a top-four accounting firm is valuing the company at around $500 million dollars. In the pre-IPO, we are looking to raise against that valuation $50 million+. This will be a reference point going toward the full IPO,” he added.

As well as being a potentially lucrative financial destination, Waterworth believes that Saudi Arabia will also be a big market for Atlantic Healthcare’s products.


SABB reports profit of $750 million in first 9 months of 2021

 SABB reports profit of $750 million in first 9 months of 2021
Updated 12 sec ago

SABB reports profit of $750 million in first 9 months of 2021

 SABB reports profit of $750 million in first 9 months of 2021
  • The chairman reiterated the bank’s efforts to support Saudi’s Vision 2030 plan

The Saudi British Bank (SABB) recorded a seismic leap of 157 percent in net profit after Zakat and income tax of SR2.8 billion ($750m) for the first 9 months of 2021, compared to the loss of SR4.8 billion in the same period last year. 

“It is worth reiterating that we are in the investment phase of our newly announced five-year strategic plan, where we will be taking the necessary steps to develop the Bank into an institution fit to meet the future needs of our customers,” chairman of SABB, Lubna Olayan, said.

“We are investing considerably across the business front-to-back, to ensure that we remain relevant and can create a sustainable banking organization,” she added.  

The chairman reiterated the bank’s efforts to support Saudi’s Vision 2030 plan and unlock the opportunities brought by the economic transformation plans. 


Qatar Energy to launch green bonds in 2022; state commits to emissions reduction

Qatar Energy to launch green bonds in 2022; state commits to emissions reduction
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Updated 10 min 38 sec ago

Qatar Energy to launch green bonds in 2022; state commits to emissions reduction

Qatar Energy to launch green bonds in 2022; state commits to emissions reduction

RIYADH: Qatar Energy is looking to raise between $5 to $10 billion from issuing green bonds, banking sources told CNBC Arabia.

Qatar Energy is developing an environmental framework in collaboration with global investment banks, including Goldman Sachs, to move into the green bond market in conjunction with the global trend towards reducing carbon emissions, sources said.

The offering is expected to take place in the first quarter of 2022 or by the end of June 2022, sources added.

Separately, Reuters reported that the Ministry of Environment and Climate Change in Qatar launched a national climate change action plan aimed to reduce greenhouse gas emissions by 25 percent by 2030.

The plan also envisioned reducing "carbon intensity" of its liquefied natural gas facilities by 25 percent by the same year.

Qatar's move follows other Gulf Arab states, including Saudi Arabia which announced its net-zero emission target by 2060 ahead of the COP26 climate change summit in Glasgow next week.


Qatar is the world’s largest producer of liquefied natural gas and aims to expand LNG production to 127 million tonnes annually by 2027. It says its gas production helps combat climate change globally because it can help the world shift from high-polluting fuels like oil and coal to renewable energies.


Saudi Arabia will welcome a million cruise ship passengers by 2028, Cruise Saudi MD claims

Saudi Arabia will welcome a million cruise ship passengers by 2028, Cruise Saudi MD claims
Updated 28 October 2021

Saudi Arabia will welcome a million cruise ship passengers by 2028, Cruise Saudi MD claims

Saudi Arabia will welcome a million cruise ship passengers by 2028, Cruise Saudi MD claims

A million cruise ship passengers will visit Saudi Arabia by 2028 according to ambitious plans set out by the managing director of the country’s Cruise Saudi company.

Fawaz Farooqui set out the goal during a session at the Future Investment Initiative Forum in Riyad, as he also claimed 50,000 direct and indirect jobs will be created by the industry by 2035.

He also pledged that five cruise ports will operate in Saudi Arabia by 2025.

Farooqui added that plans for Cruise Saudi had been hampered by the pandemic, and said: “Our plan was to bring the first cruise passenger in 2023, but the pandemic hit and many unfortunate incidents happened to the industry.”

Farooqui’s comments came just days after Cruise Saudi became a member of the World Travel & Tourism Council as the Kingdom continues its drive to diversify its economy away from oil as per the Vision 2030 agenda.


‘Like fire and nuclear, there must be rules for AI,’ says leading tech voice

‘Like fire and nuclear, there must be rules for AI,’ says leading tech voice
Updated 28 October 2021

‘Like fire and nuclear, there must be rules for AI,’ says leading tech voice

‘Like fire and nuclear, there must be rules for AI,’ says leading tech voice

Humanity needs rules for dealing with artificial intelligence (AI) in the same way it learned to manage fire and nuclear technology, one of the sector’s up and coming voices has claimed.

Bruno Maisonnier, founder and CEO of AI firm AnotherBrain, admitted there was a danger with the new technology, but that is no different from every major discovery since the dawn of man.

Speaking at the Future Investment Initiative Forum in Riyad, Maisonnier said: “There’s risk with AI as well as there are risk with every new technology, that’s part of human history 

“We brought fire and people died from fire, we brought nuclear and people died from that . 

“Each time we have the same reaction: First we fear and then we start to put the feedback and learn and put rules to get the positive out of this technology

“The same goes with AI. The question is when do we have to set these rules?

“Rules must be put but first we must allow the evolution to happen.”

Also speaking at the forum, Pascal Weinberger, CEO and co-founder of tech firm Bardeen AI, insisted that machines will never be able to fully replace humans in many environments.

“There are a lot of things that machines are better at than humans, and vice versa — especially at common sense,” he said.


Nokia's quarterly profit beats on 5G demand

Nokia's quarterly profit beats on 5G demand
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Updated 28 October 2021

Nokia's quarterly profit beats on 5G demand

Nokia's quarterly profit beats on 5G demand
  • The company expects comparable operating profit margin to be towards the upper end of the target range of 10 percent to 12 percent

Nokia reported a stronger-than-expected third-quarter operating profit on Thursday on higher demand for 5G gear, but warned the global shortage of semiconductors would hit its supply chain.


Shares of the Finland-based company were up 5 percent as investors lauded its efforts to get back on track following product missteps last year by riding on 5G demand and taking market share away from rivals, particularly in China.


Any problem in supplying to customers on time might dent those ambitions.


"At the moment, we are limited by semiconductor availability, that will affect Q4 and it's quite possible that this challenge will get bigger before it starts getting better," Chief Executive Officer Pekka Lundmark said in an interview.


Global producers of goods from televisions to cars have faced a host of supply chain issues ranging from a shortage of vital components, manpower, logistics snarls, and delays at plants because of power cuts in China.


Rival Ericsson last week also warned of supply chain issues.


"We are working every single day with the suppliers on all levels of the organisation and I have also been personally involved in these discussions," Lundmark said.


Nokia's quarterly net sales rose 2 percent to 5.4 billion euros ($6.27 billion) from 5.3 billion a year ago, in line with analysts' expectations.


The company expects comparable operating profit margin to be towards the upper end of the target range of 10 percent to 12 percent


Comparable operating profit during July-September surged to 633 million euros from 486 million last year, beating the 488 million euros forecast by 11 analysts polled by Refinitiv.


While its mainstay mobile network business suffered from lost business in the United States, network infrastructure grew 6 percent in constant currency and cloud and network services rose 12 percent.


"The 5G market is still growing and we expect that it will still take a couple of years before it reaches its peak," Lundmark said


In July, Nokia won its first 5G radio contract in China, while rival Ericsson lost market share after Sweden last year decided to ban Chinese vendors from their 5G networks.


Lundmark said revenue from China has started to flow in but the available market there for non-Chinese vendors was limited.