{"id":543401,"date":"2022-01-31T03:50:50","date_gmt":"2022-01-31T03:50:50","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/31\/its-a-bad-time-for-ipos-everywhere-but-ksa-energy-firms-cant-stop-drilling\/"},"modified":"2022-01-31T03:50:50","modified_gmt":"2022-01-31T03:50:50","slug":"its-a-bad-time-for-ipos-everywhere-but-ksa-energy-firms-cant-stop-drilling","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/31\/its-a-bad-time-for-ipos-everywhere-but-ksa-energy-firms-cant-stop-drilling\/","title":{"rendered":"It\u2019s a bad time for IPOs everywhere but KSA + Energy firms can\u2019t stop drilling"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a> <strong>Not a good time for IPOs?<\/strong> The prospect of interest rate hikes, slowing economic growth and geopolitical tensions have rattled stocks globally \u2014 and companies are pulling their listings as a result, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-01-30\/ipos-run-out-of-steam-as-selloff-rattles-global-equity-markets?srnd=premium-middle-east&sref=mmeFTDW1\">Bloomberg<\/a> reports. The total value of global IPOs since the start of the year has fallen 60% y-o-y, while at least nine IPOs have been called off in New York alone. And it\u2019s just as bad for SPACs, with USD 4 bn worth of blank-check firms scrapping their listings in January. Investors are less game for big-ticket tech listings as they flock to cheaper stocks, shifting market sentiment significantly from the growth stock frenzy of 2021.<\/p>\n<p><strong>Unless you\u2019re a Saudi company: <\/strong>Two KSA companies have priced their upcoming IPOs at the top end of their target range, signaling a continued boom in demand for share sales in the kingdom as its benchmark index flourishes, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-01-30\/more-saudi-ipos-price-at-top-of-range-as-demand-for-deals-surges?srnd=premium-middle-east&sref=mmeFTDW1\">Bloomberg<\/a>. Digital security firm <a href=\"https:\/\/www.elm.sa\/en\/about\/Pages\/about-elm.aspx\">Elm<\/a> expects to raise <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7d01bf4a-6376-4e78-9eed-83dd69d1bb7f\">USD 820 mn<\/a> in its listing, while <a href=\"https:\/\/www.smeh.com.sa\/ar\">Scientific and Medical Equipment House<\/a> could raise USD 83 mn. Elm\u2019s IPO could see the kingdom\u2019s sovereign wealth fund rake in USD 5 bn in just three months, following its bn-USD listings of stakes in Saudi Telecom and the Tadawul itself, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-01-30\/saudi-wealth-fund-rakes-in-5-billion-as-demand-for-stocks-booms?srnd=premium-middle-east&sref=mmeFTDW1\">Bloomberg<\/a> notes. And there\u2019s more to come: Saudi\u2019s listing pipeline is \u201cdeeper than ever,\u201d bourse CEO Khalid al Hussan has said.<\/p>\n<p><strong>We don\u2019t need new wells \u2014 but energy firms keep drilling:<\/strong> Oil supermajors are continuing to explore for hydrocarbons despite mounting pressure to transition to green energy, the <a href=\"https:\/\/www.ft.com\/content\/5c158a4f-24a7-49aa-a2e9-f07f918244ba\">Financial Times<\/a> reports. Last May, the International Energy Agency said that no more exploration is required if we are to cut oil and gas consumption enough to reach net zero global emissions by 2050. Nonetheless, energy giants continue to drill \u2014 they just don\u2019t advertise it like they used to, one energy consultant told the FT.<\/p>\n<p><strong>And we\u2019re no exception:<\/strong> Countries with reserves of both oil and natural gas \u2014 including Egypt \u2014 are a popular choice for new drilling, the pink paper says, as energy execs wager that demand for gas will outlast that for oil. Egypt is <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ce9b4988-61d7-4dc2-8fed-0de99cc256e6\">preparing to launch<\/a> a new oil and gas exploration bid round this year, after awarding seven companies <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c5f11f01-49af-4e27-a91e-3410f499133d\">licenses<\/a> in its 2021 tender.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>11,457<\/p>\n<\/td>\n<td>\n<p>-0.4% (YTD: -4.1%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.66<\/p>\n<\/td>\n<td>\n<p>Sell 15.76<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>12,259<\/p>\n<\/td>\n<td>\n<p>+0.7% (YTD: +8.7%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>8,766<\/p>\n<\/td>\n<td>\n<p>+0.4% (YTD: +3.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>3,220<\/p>\n<\/td>\n<td>\n<p>+1.0% (YTD: +0.8%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,432<\/p>\n<\/td>\n<td>\n<p>+2.4% (YTD: -7.0%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,466<\/p>\n<\/td>\n<td>\n<p>-1.2% (YTD: +1.1%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 90.03<\/p>\n<\/td>\n<td>\n<p>+0.8%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 4.64<\/p>\n<\/td>\n<td>\n<p>+8.3%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,787<\/p>\n<\/td>\n<td>\n<p>-0.5%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 37,746<\/p>\n<\/td>\n<td>\n<p>-1.8% (as of midnight)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 fell 0.4% yesterday<\/strong> on turnover of EGP 446 mn (60.2% below the 90-day average). Regional investors were net buyers. The index is down 4.1% YTD.<\/p>\n<p><strong>In the green: <\/strong>Ezz Steel (+1.1%), AMOC (+0.8%) and Orascom Development Egypt (+0.8%).<\/p>\n<p><strong>In the red: <\/strong>TMG Holding (-3.2%), Pioneers Properties (-2.4%) and GB Auto (-2.3%).<\/p>\n<p><strong>Asian markets are mixed this morning<\/strong>, with shares down in Australia and Shanghai but up in Hong Kong and Tokyo. The market in Seoul is closed for Lunar New Year\u2019s Eve. Futures suggest shares in much of Europe will open in the green on this first trading day of the week, with Paris\u2019 CAC 40 being the sole outlier. Futures point to a (weak) open in the green on Wall Street later today.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Not a good time for IPOs? The prospect of interest rate hikes, slowing economic growth and geopolitical tensions have rattled stocks globally \u2014 and companies are pulling their listings as a result, Bloomberg reports. The total value of global IPOs since the start of the year has fallen 60% y-o-y, while at least nine IPOs [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[9589,93,72,119,78,91,122,219,734,439],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-543401","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-elm","tag-energy","tag-enterpriseam","tag-financial-markets","tag-ipo-watch","tag-oil-and-gas","tag-planet-finance","tag-saudi-arabia","tag-sovereign-wealth-funds","tag-spacs","wpautop","entry"],"acf":{"mongo_id":"fa9f09e0-0e14-4eb5-8da7-892c1841a4ef","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[543382],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>It\u2019s a bad time for IPOs everywhere but KSA + Energy firms can\u2019t stop drilling - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/01\/31\/its-a-bad-time-for-ipos-everywhere-but-ksa-energy-firms-cant-stop-drilling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It\u2019s a bad time for IPOs everywhere but KSA + Energy firms can\u2019t stop drilling\" \/>\n<meta property=\"og:description\" content=\"Not a good time for IPOs? The prospect of interest rate hikes, slowing economic growth and geopolitical tensions have rattled stocks globally \u2014 and companies are pulling their listings as a result, Bloomberg reports. 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