Saudi stock market larger than country's economy, says Capital Market Authority chief

Saudi stock market larger than country's economy, says Capital Market Authority chief
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Updated 12 November 2021

Saudi stock market larger than country's economy, says Capital Market Authority chief

Saudi stock market larger than country's economy, says Capital Market Authority chief

RIYADH: The Saudi stock market is now larger than the Kingdom's entire economy — even without taking Aramco into consideration, the Capital Market Authority (CMA) chairman has said.

Speaking during a session organized by the Saudi Economic Association (SEA), Mohammed El-Kuwaiz revealed there are a further 54 listing applications pending — 31 of which are direct listings — as he highlighted the strength of the Tadawul. 

With Aramco added, Tadawul's size is four times that of the economy, El-Kuwaiz said. 

He argued the great momentum of a large number of companies for direct listing is because the Kingdom was the first to apply the direct listing mechanism in the GCC region.

He pointed out that CMA is currently evaluating the direct listing mechanism for the possibility of introducing improvements that are needed before applying the experience to the main market.

On the allocation in subscriptions between individuals and institutions, El-Kuwaiz said that the subscription percentage for individuals was determined by the regulations of book building instructions.

Amendments were applied in 2018, including giving the company and financial advisors greater freedom in determining the participating categories in the subscription and allocation ratios.

This increased flexibility significantly for companies that wish to list their shares, and this was one of the many factors that contributed to the success of Saudi Aramco IPO, El-Kuwaiz said.

The allocation ratio between institutions and individuals can change according to the nature of the offering, according to El-Kuwaiz. It can change from one offering and another, and this happened in the IPO of the Saudi Tadawul Group, he said.

El-Kuwaiz added that the role of the main market maker is to provide liquidity in the market, not to protect the market from rising or falling. 

He added that there is a market maker in government debt instruments, as they are dealt with directly with a group of banks that buy from the state, and they offer two prices to those wishing to buy and sell.

He highlighted that the Saudi Tadawul Group is working on the development and expansion of the market-making circle to include stocks in the main market and Nomu.

The Saudi Tadawul group is hoping to raise about $1 billion from the IPO it's launching this month, it was reported earlier this week.

The original plan was to allocate 10 percent of the 36 million shares to individuals, before raising it at a later time to 30 percent.

However, it is now going straight for the higher figure, and the Tadawul Group CEO Khalid Alhussan said on Friday this increase had always been considered a potential option.

Retail subscribers in the Saudi market represent a very important tranche in the size or the market attractiveness in terms of daily and monthly turnover, he said.

The process of building the order book for institutions will run from Nov. 21 to Nov. 26.

Saudi Tadawul will launch a new product in the derivatives market and the existing services and products will see further modifications, Alhussan told the Aleqtisadiah newspaper.


Mediterranean Shipping Co. connects Jeddah Port with 10 global ports

Mediterranean Shipping Co. connects Jeddah Port with 10 global ports
Updated 15 sec ago

Mediterranean Shipping Co. connects Jeddah Port with 10 global ports

Mediterranean Shipping Co. connects Jeddah Port with 10 global ports

RIYADH: Geneva-headquartered Mediterranean Shipping Co. will introduce a new call to its Himalaya Express Service to connect Jeddah Islamic Port with 10 global ports, said the Saudi Ports Authority. 

The new addition will link Jeddah Islamic Port with ports of Colombo, Nhava Sheva, Mundra, Salalah, King Abdullah Port, Valencia, Felixstowe, Rotterdam, Hamburg, and Antwerp, according to a statement. 

The service will include 11 mother ships with a capacity of 14,000 twenty-foot equivalent units for each vessel. Its first vessel sailing is expected to arrive at Jeddah Islamic Port on Oct. 23.

The global transport and logistics firm said it’s part of its commitment to serve the Saudi market and to expand import and export operations in the Kingdom’s ports. 

The cooperation between Mawani and MSC will enhance Saudi ports' performance on the investment and logistical fronts.

It will strengthen connectivity between the Kingdom and the world, reflecting positively on the operational efficiency in line with the objectives of the National Transport and Logistics Strategy of positioning Saudi Arabia as a global logistics hub, Mawani said in a press release.


Egypt aims to raise $6bn by selling stakes in state firms to revive economy

Egypt aims to raise $6bn by selling stakes in state firms to revive economy
Updated 9 min 38 sec ago

Egypt aims to raise $6bn by selling stakes in state firms to revive economy

Egypt aims to raise $6bn by selling stakes in state firms to revive economy

RIYADH: Egypt is planning to raise $6 billion by June 2023 through selling stakes in government companies as the nation tries to revive an economy badly affected by Russia’s invasion of Ukraine. 

Bloomberg, citing Egypt’s planning minister Hala El-Said, reported that the move will include share offerings to the public or block sales to strategic investors, backed by the country’s sovereign wealth fund. 

She did not reveal the names of the companies which will be listed for an initial public offering. 

The Bloomberg report further revealed that the stakes of some companies owned by Egypt’s army will be sold as a part of this program. 

Earlier this month, Egypt set up a new fund to assist government companies in getting listed on the stock exchange. The pre-IPO fund aims to restructure some state-owned assets and prepare them for stake sales. 

El-Said revealed that the ultimate target is to transfer assets worth $3 billion to the fund within three to six weeks, and it includes the assets of a power plant co-built by Siemens AG. 

The planning minister said that Egypt will conduct road shows in Europe and Asia at the end of October to showcase the investment opportunities in the country. 

She added that sovereign wealth funds within the Gulf and other regions will be approached to buy stakes in Egyptian entities. 

“Sovereign wealth funds are usually long-term investors, they add value in terms of expertise, finance and technology,” she said. The Bloomberg report further pointed out that Abu Dhabi’s ADQ and a unit of Saudi Arabia’s Public Investment Fund have already invested roughly $3 billion to buy shares in Egyptian firms owned by the government. 

Apart from eyeing more foreign investments, Egypt is also negotiating a new loan with the International Monetary Fund. 

Egypt’s fuel and food imports bill has soared as a result of the Ukraine war, and the country witnessed $22 billion in outflows from the local debt market since March 2022. 

Egypt had considered listing 10 government companies on the stock exchange this year, but the Russian-Ukraine crisis apparently delayed the plans. 


UAE healthcare provider Burjeel to sell 11% stake and list on ADX

UAE healthcare provider Burjeel to sell 11% stake and list on ADX
Updated 44 min 56 sec ago

UAE healthcare provider Burjeel to sell 11% stake and list on ADX

UAE healthcare provider Burjeel to sell 11% stake and list on ADX

RIYADH: Abu Dhabi healthcare provider Burjeel Holdings said it intends to offer 11 percent of its shares in an initial public offering as it prepares to go public this year.

The company plans to sell 550.7 million shares, including 350.3 million from VPS Healthcare Holdings, which owns 79.8 percent of Burjeel.

Among the offered shares, 10 percent will be allocated under the first tranche, and 90 percent under the second tranche.

The offer period for the first tranche and the second tranche starts on Sep. 30 and will close on Oct. 4, 2022. 

Burjeel is expected to announce the final price on Oct. 5, and the shares are expected to be listed in Abu Dhabi on Oct. 10.

“Our long-term vision focused on increasing access to quality healthcare and clinical excellence across the region has driven our growth over the past 15 years,” chairman of Burjeel Holdings plc, Shamsheer Vayalil Parambath, said.

“As healthcare expenditure continues to increase across the region, Burjeel Holdings is strongly positioned to benefit through our focus on providing complex, specialized medicine for all socioeconomic groups, through a targeted, multi-brand strategy,” he added.

J.P. Morgan Securities plc has been appointed as capital markets advisor to the selling shareholder and company in connection with the offering.

“Today’s announcement builds on our partnership with IHC which will have a transformative impact for Burjeel Holdings through the addition of new capabilities, capital, and access to new markets,” Parambaths said.

Last week, International Holding Co. announced that it has purchased a 15 percent stake in Burjeel Holdings.

“The acquisition will aim to continue to scale and diversify IHC’s investment in the healthcare sector locally and regionally,” IHC said in a statement.

IHC is the largest company in the UAE by market value and it is led by Sheikh Tahnoon Bin Zayed Al Nahyan, the UAE's national security adviser and the brother of UAE’s president.

With a network of 39 hospitals and medical centers, Burjeel Holdings is one of the leading providers of healthcare in the UAE private market with a market share of approximately 17 percent for in-patients and approximately 12 percent for out-patients.

Founded in 2007, the healthcare provider plans to invest $1 billion in Saudi Arabia by 2030 through joint ventures and public-private partnerships.


HSBC Saudi Arabia appoints new CEO amid expansion plans 

HSBC Saudi Arabia appoints new CEO amid expansion plans 
Updated 56 min 51 sec ago

HSBC Saudi Arabia appoints new CEO amid expansion plans 

HSBC Saudi Arabia appoints new CEO amid expansion plans 

RIYADH: HSBC Saudi Arabia has appointed Faris AlGhannam as the bank’s new CEO as the lender embarks on a new phase of growth in the Kingdom.

Taking up his new role on Oct. 1 upon regulatory approval, AlGhannam is currently the bank’s deputy CEO, according to a statement.

He succeeds Rajiv Shukla, who was appointed senior managing director and advisor to the regional CEO after leading HSBC Saudi Arabia as its chief since April 2019.

“I am delighted to take on the responsibilities of CEO, leading HSBC Saudi Arabia on a new phase of growth as we focus on the needs of our clients, continue our long-standing contribution to the growth and development of the Kingdom, and help to deliver HSBC’s strategy,” he said.

Founded in 2005, HSBC Saudi Arabia is a joint venture 51 percent owned by HSBC and 49 percent owned by the Saudi British Bank.


Anaam’s shares lead the market gainers after it swings to profits in H1

Anaam’s shares lead the market gainers after it swings to profits in H1
Updated 26 September 2022

Anaam’s shares lead the market gainers after it swings to profits in H1

Anaam’s shares lead the market gainers after it swings to profits in H1

RIYADH: Shares of Saudi poultry processing firm Anaam International Holding Co. surged in early trading after it turned a profit of SR1.6 million ($425,599) in the first half of 2022, against a loss of SR2.4 million in the year-earlier period.

Anaam’s shares topped market gainers, surging 9.94 percent to reach SR20.8 percent at 10:32 a.m. Saudi time.

Anaam attributed its performance to an 84 percent surge in sales and revenue during the first six months of the year to reach SR7.2 million, according to a bourse filing.

Its accumulated losses reached SR7.23 million, representing 2.3 percent of capital, as of June 30, 2022.