This Saudi company just kicked off its micro-IPO: Saudi non-bank lender Morabaha Marina Financing Company wants to raise up to USD 83.4 mn in its IPO on the Saudi stock exchange, it said in a statement (pdf) yesterday announcing the pricing of its shares. The company is selling 21.4 mn shares — around 30% of the company —- on the Tawadul and has set a price range of SAR 13.0-14.6. The final price will be announced next Sunday following the institutional book building process, which kicked off yesterday. The subscription period for individual investors will take place between 28-29 May. The company is yet to disclose when it will start trading on Tadawul.

The news comes a day after we suggested that the Gulf IPO boom is running out of steam following news at the weekend that ADES International and Aramco’s energy trading arm are both postponingtheir listing plans due to current market conditions. Falling oil prices have taken the air out of last year’s bull run in Riyadh, causing the exchange to fall 16% from its high last May.

Did we speak too soon? There’s a big difference between Morabaha’s USD 83 mn listing and the multi-bn USD share sale expected for Aramco Trading, which reportedly doesn’t feel like that market can currently support such a large IPO.

EGX30

17,369

+0.6% (YTD: +19.0%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,348

-0.4% (YTD: +8.3%)

ADX

9,635

-0.4% (YTD: -5.6%)

DFM

3,559

-0.3% (YTD: +6.7%)

S&P 500

4,124

-0.2% (YTD: +7.4%)

FTSE 100

7,755

+0.3% (YTD: +4.1%)

Euro Stoxx 50

4,318

+0.2% (YTD: +13.8%)

Brent crude

USD 74.17

-1.1%

Natural gas (Nymex)

USD 2.27

+3.5%

Gold

USD 2,019.80

0.0%

BTC

USD 26,936

0.0% (YTD: +62.7%)

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 1.83 bn. Local investors were net sellers. The index is up 19% YTD.

In the green: Credit Agricole (+11.1%), ADIB (+8.9%), and CIRA Education (+7.7%).

In the red: Juhayna (-4.2%), Egypt Kuwait Holding (-3.0%), and Ibnsina Pharma (-2.4%).

Asian markets are starting the week in the red this morning and oil prices are continuing to decline amid concerns about the health of the global economy. US stocks are on course to open lower while European equity futures are currently in the green.

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