Savola to offload Almarai, eyes IPO for Panda as it aims to focus on fresh growth

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Is Aramco closing in on Indian investments?

Good morning, friends, and happy Thursday to you all. We have a blockbuster issue for you this morning, leading off with news that Savola is divesting Almarai (where its investment is up >100x since it first bought into the dairy giant) to focus on fresh growth going forward.

^^ We have the rundown on Savola, the latest on IPOs by Modern Mills and Avalon, a wrapup of the PIF’s private-sector conference — and more — in this morning’s news well, below.

Up first:

#1- Oil giant Aramco is in talks with Indian firms on potential investments, Reuters reported yesterday, citing statements by Aramco’s Senior VP Faisal Al Faqeer during India Energy Week in Goa. “Hopefully we will see some announcements soon on investment in Indian companies,” he said, without providing further details on the investments.

India is the world’s third-largest importer and consumer of oil and has been pushing for years to bring Aramco on side for its planned strategic reserve program.

#2- Some of the Kingdom’s fresh produce will be making its way to Europe.Dava Agricultural signed a first-of-its kind agreement with Dutch fruit and vegetable trader Lehmann & Troost to sell vegetable crops grown through hydroponic farming to the Netherlands and beyond in Europe, state news agency SPA reported yesterday. The surplus produce includes tomatoes, cherry tomatoes and bell peppers.

Hydroponic farming? It is a farming technique where plants are grown using water-based mineral nutrient solutions rather than soil. It helps provide fresh produce in regions with extreme drought and low soil quality.

#3- Bahrain’s Crown Prince Salman bin Hamad Al Khalifa was in town for talks with Crown Prince and Prime Minister Mohammed bin Salman, SPA reported yesterday. They two chaired the Saudi-Bahraini Coordination Council and inked a number of MoUs in energy, economy, and capital markets.

THE BIG STORY ABROAD-

As has been the case most of this week, there’s no single big story abroad that has captured the imaginations of the business or mainstream press. Among the stories you need to know about this morning — or might simply find interesting:

Republican Nikki Haley lost to “none of these candidates” in what the New York Times calls an “irrelevant” Nevada primary, but she’s still staying in the race in a bid to “broaden voters’ imagination of what’s possible, both for her prospects in the 2024 Republican presidential primary, and for the nation.”

The S&P hit a record highas strong earnings continued and tech stocks rallied. Among those reporting earnings: Uber posted an operating profit for the first time on a full-year basis (you can check out its earnings here).

AND- Cairo is playing host today to a fresh round of ceasefire talks, but Israeli PM Benjamin Netanyahu tried to pour cold water on the conversation, dismissing Hamas’ goal of a long ceasefire as “delusional.” US Secretary of State Antony Blinken is still pushing Israel to play ball.

MORNING DISTRACTIONS-

Finance meme lord Litquidity is a 32-year-old former banker named Hank Medina who did time at Jeffries and Deutsche Bank. Medina sat down for his first-ever interview courtesy the Financial Times. Don’t know him? Check out his IG.
Aussie businesses that call or email employees after hours could face penalties under proposed legislation that would give staff the right to “refuse to monitor, read or respond to contact, or attempted contact, from an employer outside of the employee’s working hours unless the refusal is unreasonable.” (Bloomberg)

DATA POINTS-

Exports declined 15.6% y-o-y to SAR 95 bn in November 2023 due to a 19.4% decrease in oil sales, according to a Gastat report (pdf). Non-oil exports fell 0.7% y-o-y to SAR 22.6 bn in the same period. Meanwhile, imports rose 3.7% y-o-y to SAR 67 bn in November 2023.

CIRCLE YOUR CALENDAR-

Filipino exporters are coming to town: A business-matching tour will kick off on Saturday, 10 February, where a group of Filipino exporters of food, beverage and personal care products will tour Riyadh, Jeddah, and Dammam to market their businesses, Arab News reports.

The Saudi Capital Market Forum will open on Monday, 19 February and wrap up on Tuesday. Held under the theme “Powering Growth,” the event will bring together members of the global financial landscape for discussions on the capital markets and investment strategies.

The Diriyah Contemporary Art Biennale will kick off in Diriyah on Tuesday, 20 February and wrap up on Friday, 24 May. Headlined After Rain, it will be led by German curator Ute Meta Bauer and features 92 artists from 43 countries. It will see several new commissions, including a joint project documenting “Saudi futurism” since the 1940s by local artist Ahmed Mater and Berlin-based photographer Armin Linke.

The Future Investment Initiative (FII) will host a two-daypriority summit in Miami startingThursday, 22 February.

Savola looks to offload Almarai, raise SAR 6 bn in fresh capital to focus on new growth opportunities

Savola Group is looking to grow by offloading dairy giant Almarai, raising SAR 6 bn in fresh capital, and exploring the possible IPO of Panda, its consumer retail arm. The food and retail investment group made the blockbuster announcement in a Tadawul disclosure and press release (pdf) yesterday. It also unveiled a website to explain the transaction.

Savola Group plans to offload its full 34.5% stake in Almarai, the region’s largest dairy outfit. It is Almarai’s biggest shareholder, followed by the Public Investment Fund, which holds a 16% stake through one of its units.

The divestment of Almarai will be a three-step process requiring regulatory approvals and shareholder votes at each turn. It wants to first raise SAR 6 bn through a rights issue to existing shareholders, then reduce its capital before distributing its Almarai shares to shareholders. In simpler terms: “You give me SAR 6 bn, then I’ll give you my stake in Almarai.”

Savola is careful to point out that Almarai “has been one of the most successful investments for Savola Group to date.” It says the value of its investment in the dairy giant is up more than 100x since it invested back in 1991.

Savola wants to “unlock value” — it doesn’t think the market fairly values what it does or what Almarai does, writing in an FAQ that “over the past years, Savola’s market capitalization is approximately equal to the market value of its stake in Almarai.”For folks who like Almarai’s story, it’s a way to get direct exposure. And if you like Savola, buying Savola stock gives you direct exposure to its future growth prospects and starts to do away with the so-called “holding company discount.”

What are those growth prospects? Savola is being cautious, but says it will use the proceeds from the rights issue to pay down debt and “invest in the growth of its portfolio companies.” Savola says that it doesn’t need the transaction to go through to meet its debt obligations. Look for it to deleverage before taking on fresh cash at optimized terms to fund its growth going forward.

Why should you like Savola shares after it sheds Almarai? The group is nicely diversified with FMCG operations across Saudi, the Middle East, North Africa and Turkey — and it’s looking to grow both organically and through M&A. It distributes food across 50 countries and has a portfolio of investments spanning consumer foods and retail (Panda and Herfy) as well as real estate, venture capital, and other sectors.

WHAT THEY SAID: Savola Group Chairman Sulaiman Al-Muhaidib said, “This unique transaction comes at an exciting moment in our four-decade history … The distribution of our stake in Almarai will provide our shareholders with direct exposure to one of the region’s most loved and trusted food brands. Going forward, we will focus on investing in the growth of our core food and retail businesses, while continuing to review strategic options to realize value from portfolio companies that demonstrate attractive distribution and monetization potential.”

AND- Savola reported strong growth in profitability for FY 2023. We have the story in this morning’s Earnings Watch, below.

PANDA IPO?

AND- Savola is separately exploring the potential IPO of retailer Panda, saying the company has shown a “healthy recovery in profitability” after a recent store overhaul. Panda is now looking to grow both its brick-and-mortar and digital sales footprints. Panda is the largest grocery retailer in the Kingdom, operating supermarkets, hypermarkets, and distribution centers. It serves over 95 mn customers per year, according to its website.

Market reax:Savola’s share price fell 3.9% to SAR 46.20 apiece on yesterday’s close, whileAlmarai’s share price declined 1% to SAR 59.00 per share.

Background: Savola said in October 2023 that it has hired Moelis & Co. to advise on the prospects of selling its share in Almarai.

Modern Mills Co. has filed to sell a 30% stake on Tadawul

Our IPO roundup this morning includes news that Modern Mills is looking to go public as well as updates on a main market share sale by Avalon Pharma.

New day, new milling IPO: The Modern Mills Company (MMC) plans to offer a 30% stake on Tadawul’s main market, it said in a regulatory filing (pdf) yesterday. Modern Mills, previously known as Milling Company 3, has received Capital Market Authority for the offering, which will see it sell some 24.5 mn shares.

What we know: The IPO is open to both institutional and individual investors, MMC said, with a final price for the offering set to be determined after the completion of the book-building process.

This is a secondary sale: Selling shareholders will own a combined 69% of Modern Mills after the transaction. They include Mada International Holding, Al Ghurair Foods Company, and Masafi Company.

MMC by the numbers:

Revenues of SAR 452 mn in 1H 2023 and SAR 978 mn FY 2022;
EBITDA margin of 33%
24% share of the domestic flour market (by volume) in FY 2022, with 46% y-o-y volume growth. That makes it the market’s largest player;
The largest production capacity among the four state-owned millers that are now being privatized

Growth strategy: New products and exports. MMC is looking to invest in its infrastructure to take more share of the flour and flour-derivatives market. It is also looking at new products and what related categories it can push into. It’s also looking to step up flour exports and expand its animal feed sales beyond the Gulf to global markets.

All part of a wave of privatization + IPO bonanza for the milling firms: MC3 is among one of several state-owned flour milling firms that were sold to the private sector by the government in recent years under its privatization scheme for the industry. It was sold to a consortium of investors for SAR 750 mn in 2020. Since then, the milling firms have sought share sales, with First Milling going public in May with a USD 266 mn IPO.

Want to go deeper? Check out Modern Mills’ intention to float (pdf) or prospectus (pdf) or visit the IPOo website.

ADVISORS- HSBC Saudi Arabia is quarterbacking the transaction as sole financial advisor, joint bookrunner and underwriter alongside Emirates NBD Capital KSA. Moelis & Company Saudi will act as advisor to selling shareholders, while Al Rajhi Bank and Saudi National Bank are receiving agents for individual investors.

WILL MC4 IPO SOON?

Another milling firm IPO-ing soon? The Fourth Milling Company (MC4) has recently tapped Riyadh Capital as its financial advisor for an IPO in Tadawul, Bloomberg reported last month, with sources saying that the offering could happen in the first half of this year.

AVALON PHARMA-

Retail offering in drugmaker Avalon Pharma’s IPO was 54.3 oversubscribed with demand totalling c. SAR 2.7 billion, it said in a statement (pdf) yesterday, after the subscription period wrapped up earlier this month. This comes after institutional the offering was 138.7x oversubscribed.

The final price for the offering was set at SAR 82 per share, valuing the drugmaker at SAR 1.6 bn at listing, it said.

Bankers have yet to say when Avalon shares will start trading. You can check out the IPO microsite here.

ADVISORS- Aldukheil Financial Group (AFG) is quarterbacking the transaction as financial advisor and bookrunner, Alinma Investment is lead manager and underwriter, Alinma Bank and SNB are receiving agents, and Mohammed Al-Dabaan and Partners is the legal advisor. KPMG is the financial auditor while Pwc is the financial due diligence advisor, and Euromonitor International is acting as market advisor.

Saudi Electricity raises USD 2.2 bn in a dual-tranche sukuk offering

Saudi Electricity has raised USD 2.2 bn from the sale of dual-tranche unsecured senior sukuk, it said in a disclosure to Tadawul yesterday. The sukuk will be listed on the London Stock Exchange (LSE).

Breaking it down: It raised USD 800 mn from a five-year tranche offering a fixed annual yield of 4.9% and another USD 1.4 bn from a ten-year tranche at a fixed annual rate of 5.2%. The issuance went to market through a special purpose vehicle (SPV).

Background: The sale is part of a USD-denominated green and / or conventional sukuk program kicked off in March of 2023 and is open to qualified international and local investors. The program raised USD 2 bn before this most recent sale.

The proceeds will both finance capex spending and, possibly, green projects, the company’s website says.

ICYMI- SEC tightened its yield as demand grew: It trimmed the yield for its FCY sukuk issuance after receiving over USD 11 bn in orders, during a roadshow for the sale which kicked off earlier this week.

ADVISORS- The company has appointed Standard Chartered Bank, HSBC, SMBC Nikko Capital Markets, MUFG EMEA, Mizuho International, JP Morgan Securities, Al Rajhi Capital, First Abu Dhabi Bank, Mashreq Bank, Dubai Islamic Bank, KFH Capital Investment and Bank of China as joint managers for the potential offering.

Share of local content spending across PIF companies hit 46% last year, fund says

The PIF’s Private Sector Forum wrapped up yesterday following two-days of talks on empowering the private sector as the Kingdom looks to raise the sector’s contribution to GDP to 65% by 2030. It also saw the signing of a number of agreements in key sectors under the Kingdom’s economic diversification plan. Here’s what you need to know:

#1- The share of local content spending across the PIF’s portfolio came in at 46% last year, Jerry Todd, who heads the fund’s National Development Division, said yesterday during a session. He said the PIF aims to reach a local content spending target of 60% by 2025. “There’s a challenge around shifting local content from only a procurement to discussion to a design and engineering discussion,” Todd said, revealing that the fund will launch a “design competition” to help spread awareness on shifting to local materials. “We need that awareness not only with architects and engineers but also with the client themselves,” he said.

#2- PIF-owned Diriyah Gate Development Authority (DGDA) signed two agreements worth over SAR 2.7 bn on the sidelines of the forum, its CEO Jerry Inzerillo told Arab News. The first agreement, worth SAR 2 bn, was signed with local firm Al Ayuni Investment and Contracting Co for infrastructure development in the area. A second SAR 700 mn agreement was signed with Saudi Constructioneers to set up Ritz-Carlton residences in Diriyah, he said.

DGDA will launch 11 new projects in the tourism, entertainment and leisure sectors by the end of the year, Inzerillo said. The projects include the King Salman Boulevard, which is dubbed the Kingdom’s version of the popular Champs-Elysees in Paris. Inzerillo said the DGDA plans to award over USD 3 bn in contracts focused on infrastructure and design engineering.

#3- The PIF’s Rua Al Madinah Holding signed two contracts worth over SAR 300 mn with unnamed “global expert houses” for the development of a number of hotels in its landmark project in Madinah.

#4- The PIF really loves tourism: PIF-owned tourism investment company Asfar signed three MoUs with the private sector to explore potential tourism investments in the Eastern Province, Asharq Al Awsat reported. They also plan to launch a multi-purpose tourism project in Al Ahsa — the largest governorate in the Eastern Province.

#5- Roshn’s Al Fulwa development is getting a push: PIF’s real estate subsidiary Roshn signed agreements and contracts with Al Ayuni Investment and Contracting, local contractor Ansab and Saudi Ceramics to design and set up residential units and utilities to its integrated development Al Fulwa located south of Hofuf.

#6- And coffee beans: The PIF’s Saudi Coffee Company (SCC) signed nine agreementswith global and local partners aimed at boosting the local coffee industry. Those include a purchasing contract with local contractors to set up necessary infrastructure for farm lands to harvest coffee beans in Jazan. It also signed an agreement with Saudi Argo for advanced irrigation solutions to help it lower water consumption at its farms.

Your next cup of coffee could be roasted by the SCC: The SCC also signed purchasing contracts with Barns, Bon Cafe, Al Hokair Group and others to supply them with locally produced specialty coffee.

Also from the form:

PIF-owned King Abdullah Financial District (KAFD) signed five agreementsfocused on boosting infrastructure, hospitality, and telecom in the financial hub.
PIF signed a MoUwith the Real Estate General Authority to establish four new centers focused on leveraging technology and capacity building to boost the real estate sector.
The PIF launched a new contractor financing program to provide flexible financing solutions to contractors working with the fund’s subsidiaries.

Sami, Kia, Saudi Chemical ink agreements at World Defense Show

Among the highlights of day three of the World Defense show:

#1- Sami + Kia will work together on military vehicles: The Saudi Arabian Military Industries (Sami) signed an agreement with South Korea’s second-largest automaker Kia for the production of bare chasses for light tactical vehicles, state news agency SPA reports. Further details on the planned project were not provided.

#2- Saudi Chemical Co. signed a EUR 4 mn contract with Bosnia’s Tehnički Remont Bratunac to localize the production of military fuses and mortar rounds, it said in a disclosure to Tadawul yesterday. The one-year contract covers the know-how, local production and the completion of the planned production line for the fuses.

ALSO- Saudi Chemical also signed a five-year MoU with the National Company for Mechanical Systems to explore developing joint projects aimed at boosting defense industries, it said in a separate disclosure to Tadawul. No further details were disclosed.

#3- We (kind of) now know what the Barzan agreement is about: Sami also signed a MoU with Qatar’s Barzan Holdings — the procurement arm of Qatar’s Defense Ministry. It sees both parties “exploring potential investments” in the defense sector, according to a statement by Sami. They will also exchange cooperation in maintenance, repair and overhaul of activities related to the sector. The agreement is the first of its kind between the two defense firms in the neighboring countries.

ALSO FROM THE EXPO- The Defense Ministry also signed contracts with several defense firms, including South Africa’s communication intelligence systems provider Hensoldt Gew, German defense contractor Rheinmetall’s Spanish subsidiary Rheinmetall Expal, Bosnian ammunition maker Igman and South Korea’s defense-related products manufacturer Poongsan Corp.

^^ Today is the fourth and final day. We’ll be back on Sunday with a wrapup.

How KSA fared amongst its EM peers in logistics- Agility’s index

Saudi made the top 10 on Kuwaiti logistics giant Agility’s annual emerging marketslogistics index (pdf), ranking sixth overall and second regionally. The index is based on a survey of industry execs.

The Kingdom made the top 10 list in all of the index’ subcategories. The rankings in short:

Third place in best business fundamentals;
Sixth place in digital readiness;
Sixth place in international logistics, up from third in the previous year;
Seventh place in domestic logistics.

KSA made the most progress diversifying the economy over the past decade, followed by the UAE and Qatar, poll respondents said. Respondents highlighted a favorable environment for SMEs as the primary driver for diversification, followed by improved conditions for multinationals, innovation and technology, infrastructure, among other factors.

The methodology: The index surveyed 830 industry executives to evaluate 50 emerging markets according to their appeal to industry stakeholders, such as freight forwarders, ocean and air freight carriers, distributors, and investors. Countries were assessed on these criteria: potential for growth in the domestic and international logistics sectors, business openness, and digital readiness.

Gen X Saudis will be a major growth driver for the GCC travel, tourism sectors by 2028

Saudi travelers born between 1965 and 1980 (aka Gen X) are expected to spend USD 11 bn by 2028 in the outbound travel and tourism market in the GCC region, Zawya writes, citing a Research Nester report. That’s 41% of the Kingdom’s total market spend. Gen X travelers expected to spend USD 18 bn.

Our favorite destination is Europe: Saudi travelers bound to Europe are expected to account for USD 13.2 bn in travel and tourism market value in the GCC by 2028, up from USD 7.4 bn in 2019, according to the news outlet.

Saudi was the top destination for international travel inbound to the MENA region in 4Q 2023, topping the list for six consecutive months, according to Wego data.

NHC is taking reservation for residential projects in Jeddah, Riyadh, while scrapping the housing subsidy eligibility requirement

Citizens can make reservations this month for any of the residential units offered by the National Housing Company (NHC), without having to be eligible for a housing subsidy, NHC said in a statement yesterday. It’s not clear whether this is an exception that will be valid for February 2024 only or NHC has completely scrapped the requirement of having to be eligible for housing subsidies.

The details: The Ministry of Municipal and Rural Affairs’ investment arm will be taking reservations this month for residential units developed by its partner developers in Jeddah and Riyadh. These units vary from villas to town houses, and apartments. There are 12 available projects in Jeddah and two in Riyadh. Buyers can finance their property purchases with front payments or through real estate financing plans.

Rent now, pay later startup Rize closes a seed round with proceeds earmarked for local expansion

Rent now pay laterRize has raised USD 2.9 mn in a seed funding round with participation from our friends at Seedra Ventures as well as Hala Ventures, JOA Capital, RZM Investments, Bunat Ventures, and Nama Ventures, along with a group of unnamed angel investors, it said in press release. The company has also secured an undisclosed amount of debt financing from unnamed lenders.

Meet Rize: The proptech company was founded in 2021 by Ibrahim Balilah and Mohammed AlFraihi to streamline property interactions, claiming to make rental processes efficient and more tenant-friendly.

What they said: “We aspire to make monthly payments the standard in residential and commercial leases, and with this investment and the remarkable growth of the Ejar platform, we will be able to expand further across the Kingdom,” said Balilah and Alfraihi.

Savola’s net income rise 21% y-o-y in 2023

Savola Group’s net income rose c. 21.1% y-o-y in 2023 to c. SAR 899.2 mn due to higher gross income from its segments, it said in a statement to Tadawul. Its top line dropped 4.3% y-o-y to SAR 26.8 bn in 2023 on the back of falling crude edible oil prices and in FX devaluation in a number of its overseas markets.

Leading the growth: The growth in net income last year came primarily on the back of higher gross income from its food processing, retail and frozen food segments and lower operational costs. This helped offset a higher net finance cost and zakat and income tax expense, according to Savola.

Savola attributed the y-o-y dip in revenues to lower revenues from its food processing segment due to lower crude edible oil prices, FX devaluation in some of its markets abroad, an exit from Morocco and the temporary suspension of operations in Khartoum on the back of the crisis in Sudan.

Q4 in a nutshell: Savola’s net income soared 140% y-o-y in Q4 2023 to SAR 227.1 mn, while revenues were essentially flat — down 0.3% y-o-y to SAR 6.6 bn.

Economy Minister Faisal Alibrahim named National Development Fund’s new chairman

#1- The National Development Fund (NDF) named Economy and Planning Minister Faisal Alibrahim (Linkedin) as its new chairman, state news agency SPA reported. The NDF oversees the Kingdom’s development funds and banks.

#2- Al Razi Medicalappointed Mohamed Hassan Daoud as its new CEO, succeeding Hussein Al Alfi, who resigned from his position, the company said in a disclosure to Tadawul yesterday. Daoud previously served as Al Razi’s director of its development department. He was also previously CEO of Egypt’s Rovamed Pharma.

Foreign Ministry’s no-normalization position without Palestinian state continues to get ink

The Foreign Ministry’s statement reiterating a link between the establishment of an independent Palestinian state to normalization of ties with Israel is driving the conversation on Saudi Arabia in the foreign press this morning. The story is getting ink from Reuters | The Financial Times | AFP and others.

Juffali Automotive opens its largest Mercedes center. Plus: Infrastructure, agriculture, and debt

AUTOMOTIVE-

Juffali Automotive (Jaco), Saudi Arabia’s sole distributor for Mercedes-Benz, opened its largest center in the Kingdom, it said in a statement picked up by Argaam. The Riyadh facility has a two-floor showroom that can accommodate 30 vehicles. The center offers maintenance services and distribution points for authentic spare parts. It is also home for four vehicle delivery areas, all equipped with electric vehicle charging stations.

TRADE-

Bahri + GDC Middle East ink freight forwarding MoU: National shipping company Bahri Logistics signed an MoU with PIF’s aerospace system solutions subsidiary GDC Middle East to boost collaboration in freight forwarding services, according to a statement. Two sides signed the MoU on the sidelines of the World Defense Show 2024.

INFRASTRUCTURE-

#1- The National Water Company completed a SAR 638 mn project improving pumping systems in a dozen neighborhoods in Riyadh, Mubasher reports, citing a company statement. Over 1 mn residents benefitted from the improved water infrastructure

#2- India-based water technology company Tech Wabag has landed a USD 33.5 mn contract from SEPCO III Electric Power Construction Corporationfor engineering and procurement works at an industrial wastewater treatment plant at the Ras Tanura refinery complex, it said in a press release (pdf). The plant has a capacity of 20 mn liters per day.

AGRICULTURE-

Tabuk Agricultural Development (Tadco) will supply Wafrah for Industry and Development with industrial potatoes under a SAR 16 mn agreement, Tadco said in a statement to Tadawul. The contract runs until the end of March 2025.

DEBT WATCH-

Zahrat Al Waha has renewed a SAR 60 mn shariah-compliant credit facility agreement with Alinma Bank, it said in a disclosure to Tadawul. The debt will be guaranteed by order notes of business booked with the company and will be used to finance the issuance of letters of credit to purchase raw materials.

TRANSPORTATION + LOGISTICS-

Modon has signed two MoUs with Saudi Arabian Railwaysto develop a 1 mn sqm logistics city in Dammam, as well as a new passenger station at Sudair Industrial City, which will link to the Northern Railway System, Modon said. No further information was provided.

M&A WATCH-

Saudi Vitrified Clay Pipes (SVCP)could soon own 100% of Saudi Land Factory for Cement Products in an all-share acquisition after signing a sale and purchase agreement (SPA) in a bid to diversify its product portfolio, the company said in a disclosure to Tadawul. The transaction could go through by way of a paid transaction or issuing shares in SVCP for the selling shareholders, or a combination of both.

Turkey wealth fund’s debut international bond issuance was 14x overscribed

Turkey’s central bank turbulence has not swayed investors: Turkey’s sovereign wealth fund’s debut international bond issuance was met with a strong investor appetite, despite the sudden leadership change within the country’s central bank last week. The Turkey Wealth Fund reeled in some USD 7 bn in orders for its USD 500 mn USD-denominated bond issuance yesterday, according to a term sheet seen by the Financial Times.

Remember: Last week, President Recep Tayyip Erdogan appointed Fatih Karahan to lead the country’s central bank, replacing former governor Hafize Gaye Erkan, who stepped down just eight months into her role.

MEANWHILE- Asian shares are mixed this morning in early trading.The Kospi and Nikkei are comfortably in the green, but shares in Shanghai and Hong Kong are weakly in the red as traders look for direction and wait for inflation numbers. Futures suggest major European benchmarks will open largely in the green, with Paris’ CAC 40 being the sole exception. And look for a weak open on Wall Street absent a change in momentum.

TASI	12,165.93	+0.8% (YTD: +1.7%)
MSCI Tadawul 30	1,576.00	1% (YTD: +1.6%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	27,905.95	+2.3% (YTD: +12.1%)
ADX	9,354.69	+0.2% (YTD: -2.3%)
DFM	4,161.94	+0.2% (YTD: +2.5%)
S&P 500	4,995.06	+0.8% (YTD: +4.7%)
FTSE 100	7,628.75	-0.7% (YTD: -1.4%)
Euro Stoxx 50	4,678.85	-0.3% (YTD: +3.5%)
Brent crude	79.37	+1%
Natural gas (Nymex)	1.97	-2.1%
Gold	2,051.70	+0.01
BTC	44,239.32	+2.5% (YTD: +90.3%)

THE CLOSING BELL-

The TASI rose 0.8% yesterday on turnover of SAR 10.6 bn. The index is up 1.7% YTD.

In the green: Gasco (+10%), Atheeb Telecom (+10%) and Takween (+9.1%).

In the red: Sisco Holding (-5.2%), Savola (-3.9%) and Extra (-3.1%).

CORPORATE ACTIONS-

Arab National Bank is planning a 33% capital hike to SAR 20 bn, up from SAR 15 bn through the issuance of one bonus share for every three shares owned in a bid to increase its liquidy, it said in a disclosure to Tadawul. The increase will capitalize SAR 5 bn from retained earnings and statutory reserves.

Abdullah Al Othaim Markets will disburse SAR 0.3 in interim dividends to shareholders for 2H 2023, it said in a disclosure to Tadawul yesterday.

Etihad Atheeb Telecommunication’s (GO) OGM approved a c. 277.8% capital increase by issuing new shares in a bid to improve its systems and network, as well as pay off debt, it said in a disclosure to Tadawul. The company will issue 2.8 new shares for every existing share to increase its capital by SAR 250 mn to reach c. SAR 340 mn.

CALENDAR

FEBRUARY

8 February (Thursday): end of Tuwaiq International Sculpture Symposium, Riyadh.

8-10 February (Thursday-Sunday): Hail Toyota International Rally.

9 February- 23 March (Friday-Saturday): Desert X ALUla.

10-14 February (Saturday-Wednesday): Filipino exporters will be in town for a business-matching tour.

10 February (Saturday): Last day to apply for permits to lease properties to pilgrims during Hajj season.

11- 12 February (Sunday-Monday): The Space Debris Conference, Securing the Future Growth of the Global Space Economy, Riyadh.

12-14 February (Monday-Wednesday): The International Petroleum Technology Conference (IPTC), Riyadh.

18-21 February (Sunday-Wednesday): Restatex Riyadh Real Estate, Riyadh International Convention and Exhibition Center, Riyadh.

19 February (Monday): The Future of Business 2024 Forum, Eastern Chamber’s HQ, Dammam.

19-20 February (Monday-Tuesday): Saudi Capital Market Forum, King Abdullah Financial District, Riyadh.

19-21 February (Monday-Wednesday): Makkah Expo for Hotels and Restaurants, Makkah.

19-21 February (Monday-Wednesday): Future of Media Exhibition (FOMEX), Riyadh.

20 February-24 May (Tuesday-Friday): Diriyah Contemporary Art Biennale, Diriyah.

22 February (Thursday): Founding Day (national holiday)

26 February (Monday): OTSEC Summit, Dammam.

26-29 February (Monday-Thursday): Big 5 Construct Saudi, Riyadh.

26-29 February (Monday-Thursday): FM EXPO SAUD

26-29 February (Monday-Thursday): Stone and Service Saudi Arabia, Riyadh.

MARCH

2 March (Friday): end of Noor Riyadh show, segment “Refracted Identities, Shared Futures”, Riyadh.

4-6 March (Monday-Wednesday): International Conference on Sand and Dust Storms in the Arabian Peninsula, Riyadh.

4-7 March (Monday-Thursday): LEAP 2024, Riyadh.

11 March (Monday): Flag Day (national holiday)

Signposted to happen sometime in March:

Ramadan

APRIL

14-21 April (Sunday-Monday): IMF and World Bank spring meetings, Washington, DC

28-29 April (Sunday-Monday): World Economic Forum’s Special Meeting, Riyadh.

29 April-1 May: Future Hospitality Summit at Al Faisaliah Hotel, Riyadh.

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

MAY

19-21 May (Sunday-Tuesday): Saudi Energy Convention, Riyadh.

21-23 May (Tuesday-Thursday): The Saudi Food Show, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

5 June (Wednesday): World Environment Day.

30 June (Sunday): ZATCA tax exemption scheme expires

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

AUGUST

12-15 August (Monday-Thursday): The Saudi Food Expo, Riyadh

SEPTEMBER

11-12 September (Wednesday-Thursday): The Saudi Event Show, Riyadh.

23 September (Monday): National Day (national holiday)

DECEMBER

2-13 December (Monday-Friday): Conference of the Parties (COP16) to the United Nations Convention to Combat Desertification, Riyadh.

Signposted to happen sometime in 2024:

The AFC Champions League Elite

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