The IPOs in the Gulf just won’t stop:

  • Abu Dhabi-based petrochemicals firm Borouge is set to raise some USD 2 bn
    in it    s upcoming IPO, after setting its share price at AED 2.45
    (USD 0.67) a share. The company has already secured a total c.USD 570 mn
    worth of commitments from seven anchor investors including sovereign wealth
    fund ADQ, covering its books within an hour of opening. The company will
    offer some 3 bn existing shares — or a 10% stake — in its IPO. (Reuters)
  • Saudi Arabia’s Rawabi Energy hopes to raise up to USD 500 mn ahead of an
    I    PO later this year, which could value the energy company
    at around USD 1 bn. People familiar with the matter said that Rawabi is
    working with New York’s Evercore on the funding, and has opened talks with
    potential investors. It is also talking to banks to appoint financial
    advisors for the sale. (Bloomberg)

The Gulf IPO market is red-hot right now thanks to surging oil
prices:
The region has hosted some of the biggest IPOs this year, and
raised USD 4.8 bn during 1Q 2022, surpassing the European IPO market for only the second time since the
global financial crisis.

NewMed Energy is making progress developing Cyprus’ Aphrodite gas
field:
Israeli energy company NewMed Energy and its partners at the Aphrodite gas
field have agreed to “engage with a drill ship to drill the first production
well,” a step which the company called “significant” in the development of the
field,
Reuters
reported. The company did not disclose a timeline.

Why do we care? The Aphrodite field — estimated to hold up to
4.5 tn cubic feet of natural gas — could be key to Egypt’s ambitions to become
a regional gas hub. Egypt and Cyprus are
planning to lay a pipeline
linking the field to LNG facilities on Egypt’s north coast, enabling it to
export the gas to Europe and elsewhere. Flows from the field are expected to
begin in
2024 or 2025.

EGX30

10,515

+0.5% (YTD: -12.0%)

USD (CBE)

Buy 18.35

Sell 18.43

USD at CIB

Buy 18.38

Sell 18.44

Interest rates CBE

11.25% deposit

12.25% lending

Tadawul

12,236

-0.8% (YTD: +8.5%)

ADX

9,717

-2.2% (YTD: +14.5%)

DFM

3,307

-2.5% (YTD: +3.5%)

S&P 500

3,974

+1.9% (YTD: -16.7%)

FTSE 100

7,513

+1.7% (YTD: +1.8%)

Euro Stoxx 50

3,708

+1.4% (YTD: -13.7%)

Brent crude

USD 113.42

+0.8%

Natural gas (Nymex)

USD 8.70

-0.5%

Gold

USD 1,858.70

+0.3%

BTC

USD 29,318

-2.5% (YTD: -36.4%)

THE CLOSING BELL-

The EGX30 rose 0.5% at yesterday’s close on turnover of EGP
586 mn (31.4% below the 90-day average). Regional investors were net buyers.
The index is down 12.0% YTD.

In the green: Madinet Nasr Housing (+2.7%), Mopco (+1.9%) and
Housing and Development Bank (+1.9%).

In the red: GB Auto (-2.8%), Fawry (-2.3%) and Ezz Steel
(-1.6%).

Most indexes in Asia are in the red this morning, following
US stock futures which have quickly lost momentum following yesterday’s rally.
Shares in Europe are also on course to fall when markets open later this
morning.

Tags: