Global IPO market, dealmaking to accelerate next year:Goldman Sachs sees the global IPO market picking momentum and is penciling in an acceleration in activities in 2H 2024 on expectations of a less restrictive monetary environment, according to a Goldman Sachs briefing. “We do expect to see a reasonable pickup in dealmaking activity, especially now that we seem to be through the other side of this interest rate hiking cycle,” said Jim Esposito, the co-head of Goldman Sachs’ Global Banking & Markets business.

Saudi dominated the regional IPO market in 3Q: Five out of the six main-market IPOs in the MENA region came out of Saudi with Lumi Rental drawing the highest proceeds (USD 291 mn), according to Ernst and Young. MBC Group is set for what could be one of the region’s top IPOs this year.

ALSO FROM PLANET FINANCE-

Gulf funds, including our own PIF, are facing great headwinds from the Biden administration, as part of a wider US campaign to scrutinize countries with closer ties to China. The Committee on Foreign Investment in the US is reportedly reviewing over six pacts with PIF, UAE’s ADIA and Mubadala Investment Co over national security risks. (Reuters)

TASI

11,090.42

0.1% (YTD: +5.8%)

MSCI Tadawul 30

1,427.82

-0.2% (YTD: -34.4%)

USD : SAR (SAMA)

3.75

-

Interest rates

6% repo

5.5% reverse repo

EGX30

25,300.32

-0.9% (YTD: 73.3%)

ADX

9,555.23

+0.2% (YTD: -6.4%)

DFM

3,992

+0.2% (YTD: +19.7%)

S&P 500

4,559.34

+0.1% (YTD: +18.8%)

FTSE 100

7,488.20

+0.1% (YTD: +0.5%)

Euro Stoxx 50

4,372.10

+0.3% (YTD: +15.3%)

Brent crude

USD 80.58

-1.0%

Natural gas (Nymex)

USD 2.86

-1.5%

Gold

USD 2,023.50

+0.5%

BTC

USD 37,290.05

-1.4% (YTD: +129%)

THE CLOSING BELL-

The TASI fell 0.1% yesterday on turnover of SAR 3.7 bn. The index is up 5.8% YTD.

In the green: Arab Sea (+8.9%), SPIMACO (+4.9%) and Naseej (+4.4%).

In the red: AlOmran (-8.4%), AlBaha (-6.7%) and DWF (-3.2%).

CORPORATE ACTIONS-

Just in time for COP28: Sisco’s management has gotten board approval to rebrand itself the Sustainable Infrastructure Holding Company and launch a share buyback with the aim of snatching up 8.16 mn shares to hold as treasury assets. The Jeddah-based company operates export zones, KSA’s first privately built container terminal, and a desalination facility. Going forward will focus on logistics, desalination, water purification, and residential housing, and commercial buildings. SEe Tadawul and Argaam for more.

SAMA gives OK to Gulf General’s 40% capital cut: Gulf GeneralCooperative Ins. Co. received approval from SAMA to write-off 40% of its capital down to SAR 300 mn from SAR 500 mn, according to a company disclosure to Tadawul last week. The write-off aims to offset the company’s accumulated losses, it said in a separate statement, announcing the appointment of Yaqeen Capital as financial advisor for the capital reduction process. No further details on the transaction have been disclosed.

Obeikan Glass approved a 33.3% capital increase to SAR 320 mn in a general meeting on 23 November “to strengthen the capital base and support future activities.” The company will finance the increase through “the capitalization of SAR 80 mn of retained earnings.” (Tadawul)

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