Good morning, ladies and gentlemen. The news cycle is slowly but surely picking up steam as we push through the first full week of the new year, leading with the Public Investment Fund closing its first-ever murabaha credit facility, worth USD 7 bn.

^^ We have chapter and verse on this story and more in this morning’s news well, below.

IPO WATCH-

Shares of Almoosa Health will begin trading today on Tadawul’s main market, according to a statement from the exchange. Shares can fluctuate within a ±30% range for the first three days, after which price fluctuations will be capped at ±10% as circuit breakers take effect.

REFRESHER- The hospital operator is offering a 30% stake in an IPO priced at SAR 127 per share — at the top of the indicative price range — after its institutional tranche was 103x oversubscribed and the retail component was 5.1x oversubscribed. The pricing would give Almoosa a market cap of SAR 5.6 bn at listing, and should see it raise some SAR 1.7 bn in proceeds.

ADVISORS- Our friends at EFG Hermes are underwriters and bookrunners on the transaction, alongside Banque Saudi Fransi Capital, which is also acting as lead manager and financial advisor. PwC is acting as financial due diligence advisor as well as market consultant, while Latham and Watkins is providing counsel. Moelis is advising selling shareholders.

HAPPENING TODAY-

The three-day Saudi Tourism Forum will get underway in just a couple of hours in Riyadh at Roshn Front. The event is set to feature over 100 exhibitors, along with seminars and workshops offering insights into the latest trends and developments in the tourism industry.

⚠️ WEATHER UPDATE- Rain continues across the Kingdom today. Riyadh will experience a high of 18°C and a low of 9°C, while Makkah is expected to reach a high of 26°C and a low of 17°C. In contrast, Jeddah will enjoy sunny conditions with temperatures ranging from 19°C at night to a high of 26°C during the day.

HAPPENING TOMORROW-

Supercopa de España semi finals will be played tomorrow at the King Abdullah Sports City Stadium in Jeddah. All matches start at 10pm. Here’s the schedule:

  • Real Madrid vs. Mallorca (tomorrow);
  • Athletic Club vs. Barcelona (Thursday, 9 January);
  • Final match (Sunday, 12 January).

PSAs-

#1- The Jazan Chamber is seeking bidders for a SAR 302.3 mn cars and trucks batteries production project in the Jazan Economic Special Zone, state news agency SPA reports. With an annual production capacity of 1 mn batteries, the project will help meet local demand, reduce imports, and cut logistics costs due to its proximity to Jazan Port.

#2- The Real Estate General Authority issued another set of off-plan sale licenses for residential projects in Riyadh, Makkah, and Al Hofuf, according to separate statements by the authority on X. Artar is offering 325 villas and townhouses in Riyadh, Ajdan is offering 512 villas in Makkah, and Jedda is selling 260 villas in Al Hofuf.

WATCH THIS SPACE-

#1- CAPITAL MARKETS- Nomu-listed Raoom Trading received regulatory approval from the Saudi Exchange to transition to the main market, according to a statement. The SAR 62.5 mn glass manufacturing company will continue to trade on Nomu until the transfer document is published — which has to be completed within the next two days. Trading will then halt for up to five sessions before listing on the main market. Tadawul hasn’t given dates for the move.

#2- M&A WATCH– Buruj gets the greenlight for MedGulf Merger: Buruj Cooperative Ins. obtained non-objection from the General Authority for Competition for its potential merger with Mediterranean and Gulf Ins. and Reins. (MedGulf), according to two separate filings to Tadawul (here and here). The move is still pending other regulatory and shareholders’ approvals before any binding agreement can be signed.

REFRESHER- Buruj and MedGuld inked a non-binding MoU in July 2024 to evaluate a potential merger through a share swap, where Medgulf’s capital would be upped to allow for the issuance of new shares to the shareholders of Buruj. Buruj tapped Baker & McKenzie as its advisor for the transaction, and Alinma as its financial advisor.

#3- The Kingdom is eyeing various investments in Bangladesh, with Aramco mulling the development of an oil refinery to address the country’s growing appetite for oil, Saudi Ambassador to Bangladesh Essa Youssef Essa Al Duhailain said, according to BSS News. The refinery’s output could also be exported to key markets such as China, India, and other neighboring countries, he added.

Meanwhile, Acwa Power is considering investing USD 3.5 bn in the South Asian country, Al Duhailain said, without giving further details. The ambassador also hinted at the potential establishment of a direct maritime route between Chattogram and Jeddah or Dammam.

DATA POINT-

The Sustainable Building Program saw a 32% y-o-y increase in its Sustainability Assessment service in 2024, benefiting 75 projects with a combined area of around 47 mn sqm, according to a statement. The program also issued 11 design conformity certificates during the year for projects across Riyadh, Medina, Jeddah, Khobar, Dhahran, and Taif, marking a 19% y-o-y increase. Meanwhile, over 23k quality inspection reports were issued.

About the program: The Sustainability Assessment system, developed in line with international practices and the Saudi Building Code, allows property owners and developers to measure the sustainability of new and existing buildings and communities.

OIL WATCH-

Aramco raises crude prices for most regions, but cuts them for the US: Aramco raised its prices for crude oil for next month for Asian buyers, signaling tighter supply in its key market following OPEC+ decision to delay delay production increases until April, Bloomberg reported. The oil major’s main Arab Light crude grade will be sold at a premium of USD 1.50 a barrel to the regional benchmark — an increase of USD 0.6. The Bloomberg survey for traders and refiners penciled in a lower USD 0.1 hike.

In other markets: While there was an increase in the prices of some grades for buyers in the Mediterranean region and Northwestern Europe, prices were cut for US buyers.

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THE BIG STORY ABROAD-

Politics is once again getting top billing in the foreign press this morning, with Canadian Prime Minister Justin Trudeau’s resignation after nine years in office getting plenty of ink.

Trudeau’s resignation comes following pressure from members of the Liberal party, following an increase in inflation and affordable housing shortages that led to the resignation of Finance Minister Chrystia Freeland, with the rival Conservatives party gaining popularity in recent pre-election polls. Trudeau will remain in charge at least until the end of March while parliament is suspended, with elections set to take place as early as April or, at the latest, in October. The three major opposition parties in parliament have already said they will back a motion of non-confidence in the government. (Reuters | Bloomberg | Washington Post | FT | NYT)

Meanwhile, US president-elect Donald Trump is also making headlines after Congress formally certified his election victory yesterday, setting him up for his inauguration on 20 January. His hushmoney trial is also getting more ink after he lost a bid to delay his sentencing as he looks to appeal his conviction. Trump will likely get a sentence of unconditional discharge, the judge on the case previously said, and is unlikely to serve jailtime.

IN BUSINESS NEWS- Nippon Steel is moving to sue the Joe Biden administration for blocking its USD 15 bn bid for US Steel, accusing it of using a “sham national review” to block the transaction instead of giving it a fair review. The bid had been a key topic ahead of the US elections in November, with both Biden and Trump promising to kill it in a bid to secure voters in Pennsylvania, where US Steel is headquartered.

CIRCLE YOUR CALENDAR-

#1- The three-day Future Minerals Forum kicks off on 14 January at Riyadh’s King Abdulaziz International Conference Center.

#2- The three-day Real Estate Future Forum kicks off on 27 January at the Four Seasons, Riyadh.

#3- LEAP 2025 will take place between 9-12 February at the Riyadh Exhibition & Convention Center in Malham. The tech event will bring together over 1.8k global tech brands, 1k experts and some 680 startups. LEAP 2025 will feature over 300 hours of content across 17 tracks, covering AI, fintech, edtech, smart cities, and more. Co-located with LEAP is DeepFest, a major AI-focused event bringing thought leaders and innovators under one roof.

#4- The eight-day Big 5 Construct Saudi will take place from 15-18 February and 24-27 February at the Riyadh Front Exhibition & Conference Center. The Kingdom’s largest construction event will feature over 2k exhibitors from more than 60 countries, showcasing innovations across the sector. The event is expected to attract over 75k participants.

#5- The UFC returns to the Kingdom on 1 February, kicking off its 2025 collaboration with Riyadh Season, according to Forbes. The main event will see former middleweight champion Israel Adesanya face Nassourdine Imavov. Adesanya, on a two-fight losing streak, needs a win to remain in title contention, while Imavov enters with a four-fight winning streak.The co-main event will see Shara Magomedov square off with Michael “Venom” Page. The card also includes several ranked fighters, with matchups spanning multiple divisions. Full card here.

#6- The Formula One 2025 Saudi Arabian Grand Prix will kick off on 20 April, featuring 50 laps at the 6.174-km Jeddah Corniche Circuit. Tickets are available here.

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