Brazilian Nubank downsizes IPO price range

Brazilian Nubank downsizes IPO price range
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Updated 03 December 2021

Brazilian Nubank downsizes IPO price range

Brazilian Nubank downsizes IPO price range

Brazil-based fintech Nubank has cut its valuation target by about $9 billion in its planned initial public offering in New York.

The cut brings their market capitalization to about $41.5 billion, down from the previously expected $50 billion plus, the Financial Times reported. 

The digital lender is planning to sell 289.2 million shares at $8 to 9$ each, down from an earlier bracket of $10 to $11.

The decision of lowering the price came as global equities are concerned over the new omicron variant. 

Despite the lowered valuation, Nubank would still be ahead of the most valuable digital bank in the world, European fintech Revolut, valued at $33 billion — and more than its largest Brazilian rival, Itau Unibanco, priced at $37.5 billion. 

Founded in 2013, Nubank is expected to rank among the top ten US flotations. 

Having more than 48 million users across Brazil, Mexico and Colombia, it started by offering zero-free credit cards and then moved into saving accounts, personal loans, investments and insurance. 


French construction design firm Clestra Hauserman opens regional HQ in Riyadh

French construction design firm Clestra Hauserman opens regional HQ in Riyadh
Updated 27 January 2022

French construction design firm Clestra Hauserman opens regional HQ in Riyadh

French construction design firm Clestra Hauserman opens regional HQ in Riyadh
  • Today, the Clestra Hauserman Group has offices in Saudi Arabia, the UAE, Qatar, Kuwait and Oman

RIYADH: A French construction and design firm opened its regional headquarters in Riyadh on Tuesday, in a 50-50 partnership deal with Saudi holding company, Zuhair Al-Habib Group.

Known internationally for their eco-friendly partitions, Clestra Hauserman’s decision to open a regional office in the capital city comes one year after Crown Prince Mohammed bin Salman announced the Riyadh Strategy 2030 plan. 

“Saudi Arabia is our biggest market and as of this year I can say that 80 percent of our business comes from here,” said Farid Habbas, Middle East Director of Clestra Hauserman.

“It was a natural move for the firm that we were happy and ready for. Our firm will now have direct access to the local economy, which will help us gain financial and geographic opportunities,” he told Arab News.

Clestra Hauserman, which had been based in Dubai, joins more than 40 multinational companies that are moving to Riyadh.

The plan includes a policy stating that government and state-backed institutions will no longer sign any contracts with foreign entities from 2024 unless their regional headquarters are based in the Kingdom.

The policy, which paved way for a regional headquarters attraction program, aims to help make “Riyadh one of the ten largest city economies” in the world.

Founded in 1913, the French firm has had a regional presence for more than 40 years, specializing in the manufacture and installation of prefabricated demountable partitions. Its first project in Saudi Arabia was with Aramco in the 1970s and the firm extended its regional presence via the undertaking of airport projects and numerous educational buildings and corporate offices all over the Gulf area.

Today, the Clestra Hauserman Group has offices in Saudi Arabia, the UAE, Qatar, Kuwait and Oman.

“At Clestra, we develop and design our products from scratch, then completely fit out empty buildings from zero to completion,” Habbas told Arab News. “Our work extends to maintenance and after-sales services for all our clients, where we can be on-site for any adjustments needed within 24 hours.”

Habbas said what makes their products special is their move-and-removability, and likened it to the moveable block system made by Lego — the size of partitions can easily be adjusted by adding or removing panels.

“We’re not just selling a product, we’re selling a solution. We believe that Saudi Arabia is in need of the type of flexibility we can bring with our products and expertise, and not to mention the sustainable aspect of reusing our partitions again and again.”

One of their notable projects is at King Saud University, which has more than 200 kilometers of partitions made by the French firm that have been in use for more than 40 years — which speaks to the durability of the product, the secret of which lies in steel and aluminum.

Habbas added that the firm has plans to open a small factory in the first stage, followed a by a larger one in the second, in addition to carrying out workshops that aims to provide knowledge, expertise and training to employees, a move that should provide many jobs.

Fahad Al-Rasheed, CEO of the Royal Commission for Riyadh City said that by 2030 the regional headquarters program will contribute $18 billion to the local economy and create around 30,000 new jobs.

Since the announcement of the Saudi Vision 2030, as well as plans such as the Riyadh Strategy 2030 and the National Investment Strategy, the metropolis has flourished into a regional hub for businesses, trade and plentiful investment opportunities.


Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year

Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year
Updated 11 sec ago

Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year

Naqua: At the heart of Saudi Arabia's push to produce 600,000 tons of fish a year

Saudi Arabia plans to produce 600,000 tons of fish a year, generating around 200,000 direct and indirect jobs in the fisheries sector, under its Vision 2030 master plan to diversify the economy.

The National Fisheries Development Program, founded in 2015, is tasked with this growth and hopes to attract $5 billion of investment from the private sector up until the end of the decade.

Key to these plans is the National Aquaculture Group, also known as Naqua, the Middle East’s largest firm in this industry.

Under this program, half of the new jobs that come from this fivefold boost in production will go to Saudi locals.

This move will allow the amount of seafood Saudi Arabia is able to export to grow. In 2020, the largest Arab economy imported 215,000 tons of seafood — which included tuna, sardines and Basa — and exported only 60,000 tons of aquaculture exports.

Based near Jeddah’s port, Naqua is a large-scale farm working up and down the fisheries value chain — from on-site feed production, to selling products through various firms. It produces shrimp, Barramundi fish, and sea cucumber, according to the company’s website.

The operation accounted for 86.2 percent of Saudi Arabia’s aquaculture production in 2018 and 80 percent of the Gulf’s output. 

The group’s export shipments only trailed the Kingdom’s petrochemicals and mineral industries, according to the company. It is also the Middle East’s first firm to receive the international Best Aquaculture Practices certification. Vision 2030 aims to bolster the company’s production to 250,000 tons.

The surge to hit the production target of 600,000 tons of fish products per year is earmarked to come from Naqua’s expansion, other Saudi firms as well as foreign partnerships.

Naqua is a sponsor of the coming Saudi International Marine Exhibition and Conference, or SIMEC, which is set to take place from Jan. 30 to Feb. 1.

One of the milestones reached by the company was the development of a pathogen-free strain of Penaeus vannamei, commonly known as the whiteleg shrimp, following years of testing and research and development. This means the food is less likely to pass on illnesses when eaten.

Naqua enjoys some features that could potentially protect it from other competitors. For example, it has invested large sums in infrastructure to create a vertically integrated business, in addition to its locational advantages and long-term concessions and grants. It has so far invested SR4 billion ($1.1 billion) in the sector since it was founded in 1982. 

However, Naqua is not the sole player in the aquaculture market. Riyadh-based Tabuk Fish signed a deal with NEOM in April 2021 to establish the largest fish farm in the Middle East and North Africa, according to the Giga-project city.

The firm will run a state-of-the-art hatchery for the megacity holding up to 70 million fingerlings (young fish), which will make it the largest farm of its kind in the Middle East and North Africa region, and will focus on improving local fish production in the Red Sea. 


Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit
Updated 55 min 33 sec ago

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit

Saudi Industrial Investment Group sees 1,135% jump in its 2021 profit
  • Net profit jumped from SR92 million ($24 million) to SR1.14 billion on an annual basis

RIYADH: The Saudi Industrial Investment Group, or SIIG, has experienced a tremendous increase in net profit by 1,134.8 percent due to a surge in the prices of the project's products.

Net profit jumped from SR92 million ($24 million) to SR1.14 billion on an annual basis, according to a stock exchange filing.

Established in 1996, the Riyadh-based firm is one of the first privately owned petrochemical companies in Saudi Arabia.

Its primary aim is to invest in the petrochemical industry for its shareholders.


All you need to know before Tadawul opens Jan. 27

All you need to know before Tadawul opens Jan. 27
Updated 27 January 2022

All you need to know before Tadawul opens Jan. 27

All you need to know before Tadawul opens Jan. 27

RIYADH: The Saudi stock exchange extended gains on Wednesday as investors reacted to a strong rebound in the energy market, where Brent crude oil crossed $89 per barrel.

TASI, the main index, registered gains standing at 0.6 percent, reaching 12,183 points, and the parallel market Nomu inched up by 0.5 percent to close at 25,688 points.

Elsewhere in the Middle East, bourses of Dubai, Abu Dhabi, and Bahrain edged up in line with Saudi, up 0.5, 0.1, and 0.4 percent, respectively.

The Qatari index QSI, Oman’s MSX30, Kuwait’s BKP, and the Egyptian EGX30 index all fell between 0.2 and 0.5 percent.

In early trading, Brent crude oil reached $89.6 per barrel, and US benchmark WTI crude oil rose to $86.7 per barrel as of 9:07 a.m. Saudi time.

Stock news

  • Saudi stock market regulator, the Capital Market Authority, has approved the listing of IT firm Saudi AZM for Communication and Information Technology on the parallel market Nomu
  • The Saudi Industrial Investment Group, or SIIG, has experienced a tremendous increase in its 2021 net profit, up by 1,134.8 percent
  • Saudi Kayan Petrochemical Co. turned from losses into profits of SR2.39 billion ($640 million) in 2021, buoyed by an increase in selling prices and a drop in costs
  • Telecommunication firm Etihad Atheeb has reduced its accumulated losses to 12 percent of capital
  • The Saudi National Bank, known as SNB, has awarded a SR215 million insurance contract to Arabian Shield Cooperative Insurance Co.
  • Saudi insurer Wataniya Insurance Co. got its S&P rating revised from BBB, altering the positive outlook to stable
  • National Petrochemical Co., better known as Petrochem, saw its profits surge almost fivefold in 2021, hitting SR1.4 billion
  • Saudi Arabia Refineries Co. announced the retirement of its board member Ali bin Saleh Khabti effective Jan. 26, 2022
  • Baazeem Trading Co. has appointed Salem Baazeem as board chairman and Fawzia Baazeem as vice chairman of the board of directors

Calendar

Jan. 27, 2022

End of Gas Arabian Services’ IPO book-building

End of Scientific and Medical Equipment House’s IPO book-building

Jan. 28, 2022

End of Elm Co.’s IPO book-building

 


Oil falls as US Fed’s pending interest rate hike spooks investors

Oil falls as US Fed’s pending interest rate hike spooks investors
Updated 27 January 2022

Oil falls as US Fed’s pending interest rate hike spooks investors

Oil falls as US Fed’s pending interest rate hike spooks investors
  • Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers

BEIJING: Oil prices fell on Thursday as the US dollar strengthened following signs that the US Federal Reserve will tighten monetary policy in the world’s biggest oil user.
Futures pulled back amid a broader decline in financial markets triggered by the March interest rate increase telegraphed by the Fed and as the dollar climbed against its major peers. Dollar-denominated oil becomes more expensive for buyers using other currencies when the greenback gains.
Brent crude futures were down 57 cents, or 0.9 percent, to $89.18 a barrel at 0440 GMT, after earlier falling by as much as 1.1 percent to $89. Brent climbed 2 percent on Wednesday.
US West Texas Intermediate (WTI) crude futures were down 83 cents, or 0.9 percent, to $86.52 a barrel, after falling by as much as 1.2 percent to $86.34. WTI gained 2 percent in the previous session.
“It could be a strong US dollar at play after the Federal Open Markets Committee signalled rates will rise,” said Commonwealth Bank analyst Vivek Dhar.
The dollar rose on higher US Treasury yields, lifting the US dollar index, which measures the greenback against major peers, to 96.604, near five-week highs.
Crude prices surged on Wednesday, with Brent climbing to $90 a barrel for the first time in seven years, amid the tensions between Ukraine and Russia, the world’s second-largest oil producer, that has fanned fears of energy supply disruptions to Europe.
Commonwealth Bank’s Dhar echoed those concerns, listing that along with the omicron coronavirus variant not impacting oil demand as badly as initially feared and efforts by OPEC and its allies, known as OPEC+, to boost supply not materialising as supportive for oil prices.
OPEC missed its planned supply increase target in December, highlighting capacity constraints that are limiting supply as global demand recovers from the COVID-19 pandemic.
OPEC+ is gradually relaxing 2020’s output cuts as demand recovers from the demand collapse that year. But many smaller producers can’t raise supply and others have been wary of pumping too much in case of renewed COVID-19 setbacks.
“Continued supply challenges and mounting Russia-Ukraine tensions continue to support crude oil prices. It is down slightly today but I think it is nothing more than a technical move,” said Howie Lee, economist at OCBC in Singapore.
An increase in crude oil and gasoline inventories in the United States alleviated some of the concerns about supply.
Crude inventories rose by 2.4 million barrels in the week to Jan. 21 to 416.2 million barrels, compared with analysts’ expectations in a Reuters poll for a 728,000-barrel drop, the Energy Information Administration (EIA) said on Wednesday.
Gasoline stockpiles rose by 1.3 million barrels last week to 247.9 million barrels, the EIA said, the most since February 2021.