Adnoc L&S sees huge investor demand:Investors submitted bids worth USD 125 bn for Adnoc Logistics & Services’ USD 769 mn IPO, implying a 163x oversubscription level, the company said in a statement (pdf) Thursday after it closed the book. The sale valued the company at USD 4.05 bn after it sold 1.41 bn shares — equivalent to a 19% stake — at the top end of the AED 1.99-2.01 price range. The company was originally intending to sell 1.1 bn shares but increase the size of the IPO by 26% after the order book was oversubscribed within minutes of opening.

What’s next: Adnoc L&S shares are expected to debut on the Abu Dhabi stock exchange on 1 June.

This is the second Adnoc IPO this year: Adnoc Gas raised USD 2.5 bn in its Abu Dhabi IPO in March.

Strong US data signals further policy tightening: The Federal Reserve could face pressure to continue to raise interest rates when it meets next month on the back of unexpectedly strong US data out last week. Consumer spending — a key driver of inflation — rose 0.8% in April from 0.1% in February and March, while the central bank’s preferred measure of inflation — the personal-consumption expenditures price index — accelerated to 4.4% y-o-y from 4.2% in March. Fed funds futures jumped on the news and are now pricing in a 70% chance that the Fed will raise rates on 14 June.

ALSO WORTH NOTING-

  • Saudi wealth fund sets up Iraq investment arm: The Public Investment Fund has set up a USD 3 bn investment arm in Iraq to invest in sectors including infrastructure, mining, agriculture, real estate and financial services. (Reuters)
  • Germany is in recession: The German economy contracted for the second quarter in a row in 1Q 2023 as the country’s energy crunch and high inflation hit the eurozone’s largest economy. (Federal Statistical Office)
  • Chinese industry isn’t doing so well, either: Chinese industrial firms saw their profits fall more than 20% y-o-y in the first four months of the year amid weak client demand. (Reuters)

EGX30

17,044

-0.3% (YTD: +16.8%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,185

-0.5% (YTD: +6.7%)

ADX

9,453

+0.6% (YTD: -7.4%)

DFM

3,541

+0.4% (YTD: +6.2%)

S&P 500

4,205

+1.3% (YTD: +9.5%)

FTSE 100

7,627

+0.7% (YTD: +2.4%)

Euro Stoxx 50

4,338

+1.6% (YTD: +14.3%)

Brent crude

USD 76.95

+0.9%

Natural gas (Nymex)

USD 2.42

-2.4%

Gold

USD 1,963.10

0.0%

BTC

USD 26,757

0.0% (YTD: +61.9%)

THE CLOSING BELL-

The EGX30 fell 0.3% at Thursday’s close on turnover of EGP 1.65 bn. Local investors were net buyers. The index is up 16.8% YTD.

In the green: Credit Agricole Egypt (+5.7%), Taaleem (+5.6%), and Edita (+3.9%).

In the red: Orascom Construction (-2.4%), Ibnsina Pharma (-2.3%) and Ezz Steel (-2.2%).

Tags: