A busy week for capital markets — and some 300 UK companies are inbound

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WHAT WE’RE TRACKING TODAY

Happening this week: Rasan, Saudi Manpower to wrap IPO bookbuilding + 300 British companies in town on Tuesday

Good morning, friends. It’s shaping up to be another busy week in capital markets and Riyadh will be awash in Brits drumming up business as senior execs from some 300 companies arrive here for Saudi Great Futures. Plus: The US energy secretary and the head of Nasa are both set to touch down here this week.

HAPPENING TODAY- Bankers for fintech player Rasan will kick off the bookbuildingprocess for the company’s Tadawul IPO. The company is offering a 30% stake through an offering of both new and existing shares. Saudi Fransi Capital is quarterbacking the transaction. Orders for the institutional tranche need to be in by Thursday.

AND- Bookbuilding for the institutional tranche of labor outfit Saudi Manpower’s main market IPO {wraps on Tuesday}.

PSA- The National Assessment for Schools (NAFS) begins this morning and runs through Monday, 27 May. Some 1.1 mn students in the third, sixth and ninth grade across 20k schools across the Kingdom will sit for the exams, which officials use to gauge each school’s performance.

HAPPENING TOMORROW- The Saudi Gigaproject Summit will open tomorrow at the Hilton Riyadh Hotel and Residences. The Meed event will showcase Saudi’s USD 870 bn gigaproject drive. The Kingdom’s multi-bn USD pipeline of construction projects is changing the face of the country and creating significant room for the private sector as a catalyst for Saudi’s diversification away from oil.

HAPPENING THIS WEEK- More than 300 British companies will descend upon Riyadh this Tuesday and Wednesday for Saudi Great Futures, a UK government-sponsored investment conference backed by our friends at HSBC.

Deputy Prime Minister Oliver Dowden will be leading the delegation as part of a year-long campaign that UK official hope will result in expanded “trade, tourism, education, and cultural activity.” Dowden is no stranger to the Saudi — the Tory MP spoke last fall at the Future Investment Initiative — check out his remarks here.

The pitch: “The Saudis have a respect and appetite for British intelligence, ingenuity, skills and experience from architecture to education, clean tech to AI, luxury to fashion and creativity to construction,” the event website declares. Dowden’s office notes that the “five lead gigaprojects” will see investment of c. USD 3 tn through 2030.

AND- Nasa Administrator Bill Nelson will be in Riyadh this week as part of a tour that will also take him to Italy. “Nelson will meet with Saudi Space Agency and other senior officials to discuss future collaboration and underscore the importance of civil space cooperation for the broader United States and Saudi Arabia relationship,” a Nasa statement reads.

TODAY’S WEATHER- There’s a chance of rain and thunderstorms in Riyadh with a daytime high of 41°C and a low of 27°C. Makkah is seeing similar weather conditions with a high of 43°C, with a low of 30°C. Meanwhile, Jeddah is expected to see a clearer sky with a high of 39°C and a low of 29°C.

DATA POINTS-

#1- The Industrial Production Index (IPI) fell 8.7% y-o-y in March 2024 due to a drop in mining and quarrying activities which account for c. 61% of the index’s weight, the General Authority of Statistics (Gastat) said in a report (pdf).

#2-Traffic tracked by the Saudi Ports Authority dropped 8.37% y-o-y to 910 vessels in April 2024, and passenger numbers fell 36% to 55.3k, Mawani reports

#3- Saudi EXIM Bank granted SAR 10 bn in loans to manufacturers and exporters in 1Q 2024, with plans to offer financing and insurance worth SAR 20 bn by year end, CEO Saad Alkhalb told Asharq Alawsat. The lender aims to hit 4x this year’s target by 2030, he added.

WATCH THIS SPACE-

#1- Commerce Minister Majed Al Qasabi wrapped up a visit to Thailand with a commitment on to bolster trade in both directions, state news agency SPA reported. Al Qasabi said the government is working to reduce barriers to trade, but offered no additional detail. He said Thailand holds potential in sectors including energy, manufacturing, agriculture, and tourism.

#2-Test runs for flying taxis and drones could be underway as soon as next month, Transport and Logistics Services Minister Saleh al-Jasser told Al-Arabiya (watch, runtime: 0:58). Trials for urban air travel are scheduled for the upcoming Hajj season, he said, adding that “there is currently a lot of competition among various transportation companies to provide a practical product in the upcoming years.”

REMEMBER- The still-ver-new concept of urban air mobility is slowly getting traction with officials. Neom and German flying taxi maker Volocopter having successfully tested the Kingdom’s first electric air taxi. French engineering firm Setec Group is also currently conducting a feasibility study to locally operate a flying taxi project. In 2022, Neom Investment Fund invested USD 175 mn in German electric vertical takeoff and landing (eVTOL) vehicle maker Volocopter.

#3- Tencent-backed fintech company Airwallex is looking to secure a license within the next 18 months to operate in the Kingdom, CEO Jack Zhang told Bloomberg. The Aussie company is currently in talks with GCC sovereign wealth funds including the Public Investment Fund, Abu Dhabi Investment Authority, and UAE’s Mubadala Investment as it pushes through with its MENA expansion plans, Zhang said.

UAE + Qatar + Bahrain: With 20 offices around the globe, the startup is also looking to secure a license in the UAE in the next 6-12 months and it has Qatar and Bahrain on its radar.

#4- Singapore-based Ant International inches closer Saudi market entry: The global arm of China’s fintech major Ant Group inked an MoU the Investment Ministry as part of its push to acquire the necessary licenses to operate here, serving as a prelude to further expansion in the region, according to a joint statement. The SME-focused fintech company’s brands include Alipay+, Antom, WorldFirst, and Anext Bank.

#5- Nujuma — a Ritz-Carlton property — will welcome its first guests on Sunday, 26 May, Aleqtisadiah reports. The 82-key resort is located on PIF-backed Red Sea Global’s Ummahat Islands. Nujuma is slated to be Ummahat Island’s second operational resort after the St. Regis Red Sea Resort, which opened its doors earlier this year.

#6- Officials have ordered the recall of Bon Tum mayonnaise after it traced the Hamburgini-linked food poisoning outbreak to the condiment brand, state news agency SPA reported yesterday. It said the factory producing the mayonnaise has been closed pending legal action. The move comes after a laboratory analysis by the Saudi Food and Drug Authority identified clostridium botulinum bacteria in the mayo used by the local burger chain. One person reportedly died of food poisoning and more than 70 were made sick.

PSAs-

The Health Ministry has reported three local cases of Middle East respiratory syndrome coronavirus (MERS-CoV), including one death, to the World Health Organization (WHO), in the week starting Wednesday, 10 April 2024, the UN agency said in a news release. The three men, aged 56 to 60, had underlying health conditions and were likely exposed to the disease at a medical facility in Riyadh. This brings the total number of reported cases in the Kingdom this year to four, with two of them having died.

SPORTS-

#1- Al Hilal bagged the Saudi Pro League title yesterday with a 4-1 victory over Al Hazem. It now sits on the top of the league with a 12-point advantage over rival Al Nassr, but needs to get through three matches before being officially crowned. Al Hilal has its eyes on the treble after being crowned the Saudi Super Cup title last month and reaching the Saudi King’s Cup final, where they will face Al Nassr later this month.

Among this weekend’s matches:

Al Ahli beat Al Shabab 2-1;
Al Nassr won 3-1 over Al Akhdoud;
Al Ittihad lost 5-0 to Al Ettifaq.

#2- The PGA Tour Enterprises formed a transaction subcommittee to continue talks with the Public Investment Fund on what’s next for the PGA / Liv / European Tour merger, according to a statement by the PGA Tour. The seven-member subcommittee sees three active PGA Tour players on board, including Rory McIlroy, Tiger Woods and Adam Scott. It also includes PGA Tour Enterprises newly elected chairman Joe Gorder.

What they said: “Together with our player directors, we understand that fans are counting on us to actively engage with the PIF and pursue other investment and innovation opportunities that benefit everyone—fans, players, and sponsors alike. We're all committed to making this happen,” Gorder said in a statement.

#3- Hattan Alsaid made history as the first Saudi woman to sign with a major MMApromoter, Al Arabiya reported. Alsaid knocked down Egypt’s Nada Faheem in round two of the Women’s flyweight amateur bout on Friday during Riyadh’s inaugural Professional Fighters League (PFL) MENA season.

Also from the ring- Saudi MMA champ Abdullah “The Reaper” Al Qahtani defeated Jordan’s Yazeed Hasanain to secure a spot in the featherweights semi-finals, while Malik Basahel beat India’s Harsh Pandya in the men’s flyweight amateur showcase bout.

#4- China’s Wang Chuqin and Chen Meng were crowned champions of the Kingdom’s first-ever professional table tennis event Saudi Smash. The world number won 4-2 against Germany’s Patrick Franziska. Meng beat women’s number one Sun Yingsha with a 4-2 victory.

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THE BIG STORY ABROAD-

IN BUSINESS- The United States is about to slap a tariff of up to 100% on Chinese electric vehicles in a bid to protect its domestic EV industry from subsidized competition. The Biden administration will announce the move on Tuesday, the Financial Times reports this morning.

“All we do is complain while China advances,” writes Kevin Williams in Inside EVs after a trip to Beijing. Read: I went to China and drove a dozen electric cars. Western automakers are cooked. Need more background on what’s going on in the global EV market? Check out last Thursday’s Big Story Abroad here.

IN WAR- An isolated and defiant Israel has ordered more Palestinians to flee Rafah as Prime Minister Benjamin Netanyahu vowed to “stand alone” and push ahead with a full assault on the city. “The UN estimates that about 150k people have already fled Rafah since Israel sent ground troops to the eastern edge of the city on Monday and seized the border crossing with Egypt,” the Financial Times reports.

AND- UAE Foreign Minister Sheikh Abdullah bin Zayed swatted away Israeli claims that the UAE would be part of a post-conflict administration for Gaza, writing late Saturday night in a post on X that Netanyahu “does not have any legal capacity to take this step. The UAE refuses to be drawn into any plan aimed at providing cover for Israel’s presence in the Gaza Strip.”

IN TECH- OpenAI isn’t launching ChatGPT-5 or search engine, but will unveil on Monday “some new stuff we think people will love. Feels like magic to me,” CEO Sam Altman wrote on X. Reuters had earlier reported the AI company was launching a search engine to rival Google.

Google, meanwhile, will kick off its Google I/O conference tomorrow morning. Expect plenty of talk about (not around — about) AI.

AND- Apple is still in talks with OpenAI and Google to put their chatbots on the iPhone, Bloomberg reports.

KUWAIT DISSOLVES PARLIAMENT-

Sheikh Meshal Al Ahmad Al Jaber, the emir of Kuwait, has dissolved parliament and suspended for up to four years some articles of the constitution, saying in a televised address that the moves were necessary to root out corruption. “The unhealthy atmosphere experienced by Kuwait in previous years has encouraged the spread of corruption to reach most state facilities, and unfortunately it reached the security and economic institutions,” he said.

Go deeper: Kuwait’s state news agency Al Anba has more of Sheikh Meshal’s remarks. The story is getting ink from the Financial Times and Bloomberg.

CIRCLE YOUR CALENDAR-

The MENA Construction Summit will kick off next Tuesday, 14 May at the Hilton Riyadh Hotel & Residences. Also organized by Meed, the one-day event will bring together developers, contractors, key executives and others to discuss the latest innovations in the construction industry.

Red Sea Fashion Week will make its debut on Thursday, 16 May and run until Saturday, 18 May at theSt. Regis Red Sea Resort, according to state news agency SPA. The event, organized by the Saudi Fashion Commission, will feature an opening show on the first day, followed by two days of runway shows showcasing collections from both Saudi and international designers.

The Future Aviation Forum will get underway on Monday, 20 May and run until Wednesday, 22 May at the King Abdulaziz International Conference Center in Riyadh. The event, organized by the General Authority of Civil Aviation, will see the Kingdom showcasing some USD 100 bn worth of investment options in the aviation and logistics sector at large.

Saudi IPO boom, another ETF, and closer cooperation were the big themes at the Hong Kong edition of Tadawul’s Capital Market Forum

The Saudi and Hong Kong finance communities pledged to strengthen ties and talked up their respective IPO books as the Hong Kong edition of Tadawul’s flagship Capital Market Forum wrapped last week. Here’s everything you need to know:

#1- Hong Kong wants to be a gateway to Chinese capital for Saudi companies looking to raise funds, Hong Kong public broadcaster RTHK reported, citing statements by Deputy Financial Secretary Michael Wong. Working closer together will help both countries fulfill “ambitious goals in finance and well beyond,” Wong said.

Saudi returned the love: “We believe Hong Kong is a great partner for us. They’ve been doing a great job in the past few years, and I think they’ve established themselves as a destination for international investors looking to invest in Asia,” the Saudi Stock Exchange CEO Mohammed Al Rumaih said. “So, for us, as a country that is gearing up to become a thriving economy and having the biggest stock market, or the biggest skeletal market, within that time zone, I think Hong Kong is a great partner to connect the Middle East with the East,” he said.

Hong Kong officials are looking to set up a trade and economy office in Saudi, Wong revealed, without providing further details.

AND- Hong Kong’s flagship carrier Cathay Pacific will relaunch direct flights to Riyadh in the fourth quarter of this year, he said.

ANOTHER ETF IN THE WORKS

#2- An ETF between Saudi and Hong Kong could be in the making: Wong said Hong Kong and Saudi are considering setting up an ETF on Tadawul that would track Hong Kong indexes, according to Reuters. No further details were provided, but the Hong Kong government is said to be working with a number of unnamed financial institutions to develop the ETF.

Discussions are still underway on the ETF, but its launch is “dictated by the appetite of asset managers to do so,” Tadawul Group’s Chief Sales and Marketing Officer Nayef Al Athel told South China Morning Post (watch, runtime: 4:46). “We are in discussions with several global asset managers and asset managers that are based in mainland China and Hong Kong. There is interest, and there is a lot of work being done to try to reciprocate the effort being done in Hong Kong towards Saudi,” Al Athel said. “I am pretty confident that we would see another ETF listing in Saudi and maybe in more ETF listings in Hong Kong.”

BACKGROUND- The first Saudi ETF in Asia debuted in Hong Kong last November. Fund manager CSOP Asset management said at the time it was looking to cross list the ETF in Shanghai in the second half of the year.

The Hong Kong experience: “Every single regulation that has been implemented on the Saudi exchange, whether it was the IPO book-building frame or the secondary offerings regulations that were recently issued, Hong Kong was part of that benchmark.” Al Athel said.

IPO WATCH-

#3- Saudi and Hong Kong are banking on an IPO boom, with Tadawul’s Al Rumaih telling Bloomberg on the sidelines of the forum that he expects the IPO bonanza at home to continue with up to 50 companies seeking listings. “We have more than ten IPOs approved but waiting for book building and dealing with the asset managers to determine listing and offering dates,” Al Rumaih said. “And the good thing about those IPOs is not just the number, but the diversity,” he said. “So they are from different sectors, different sizes in different stage in their life cycle.”

Hong Kong’s IPO rebound is “inevitable” with listings by leading companies from the region coming to the exchange, South China Morning Post reported, citing statements by Hong Kong Exchanges and Clearing Limited (Hkex) CEO Bonnie Chan Yiting. More than 100 listing applications have been submitted to the HKEX this year after officials took steps to make listing easier. “It is just a matter of time [before] some of the biggest Middle East companies will launch IPOs raising funds in Hong Kong,” she said.

Making sure everything is in place for cross-listings: “We want to have a path ready for them in case they decide to do so,” Al Rumaih said when asked about the prospects of cross listings by Saudi companies in Hong Kong or vice versa.

IN CONTEXT- Hong Kong’s IPO market is off its slowest start since 2009, the Financial Times notes, saying “IPOs in Hong Kong raised a total of USD 604 mn in the first three months of this year, down 29% from last year.” The outlook for the rest of the year isn’t much better: The city will probably face a “double whammy of elevated US interest rates and weak confidence in China-related assets” through year’s end, the salmon-colored paper cites one pundit as saying.

SAUDI IPO PIPELINE AT A GLANCE-

Among the transactions now in the market or expected soon:

Water treatment outfit Miahona has priced its IPO at the top of the range after recording strong investor appetite (see story, below);
Fintech startup Rasan is set to sell a 30% stake, with subscription now open to institutional investors.
Dr Soliman Abdul Kader Fakeeh Hospital looks set to become the largest IPO so far this year;

Budget airline Flynas is reportedly looking to go public this year;

PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital ;
Labor agency Saudi Manpower Company (Smasco) is selling a 30% stake;
Hotels and resorts operator Boudl has filed to go public;

Fourth Milling Company will list before the end of June;
Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
Hypermarket operator Lulu is said to be eyeing a dual listing on Tadawul and ADX;
Aster DM Healthcare looks set to spin-off its GCC assets and seek a dual listing on Tadawul and in the UAE.

Companies have so far raised nearly USD 700 mn through IPOs this year, with the largest current IPO being Modern Mills which listed in March.

Water company Miahona prices its IPO top of the range as investors show strong interest

The book-building process for Miahona’s IPO on main market Tadawul was 170x covered, speaking to strong appetite from institutional investors for the Riyadh-based water treatment company, according to a statement (pdf). Bankers booked SAR 94.4 bn in orders, giving them confidence to price the offering top of the range at SAR 11.50 per share, valuing the IPO at just SAR 555.5 mn. Miahona will make its market debut with a market cap of SAR 1.85 bn.

What’s next: The two-day subscription process for the retail tranche is slated to start on Tuesday, 21 May.

Background: The sole owner of Miahona — Vision Invest — will sell a 30% stake on main market Tadawul in secondary share sale; its shares will remain locked up for six months from the first trading day. The selling shareholder will take home the proceeds from the offering after paying an estimated SAR 28 mn in fees associated with the transaction.

ADVISORS- Our friends at EFG Hermes KSA are quarterbacking the transaction as financial advisor, bookrunner, and underwriter, along with Saudi Fransi Capital (SFC) which is also separately acting as the lead manager. SFC and Riyad Bank are receiving agents. Latham & Watkins is acting as legal counsel, while PwC is financial due diligence advisor, KPMG are serving as auditors, and Arthur D. Little as market consultant.

IN OTHER IPO NEWS-

Qualified investors will start today placing orders for the Nomu IPO of Horizon Educational, with the book-building process wrapping up on Thursday. The Riyadh-based school operator is taking a 20% stake to market by issuing 500k new shares and it’s guiding on a price range of SAR 48-54 a piece which could see it generate up to SAR 27 mn in proceeds and — at the top of the range — would give it a post-IPO market cap of SAR 135 mn.

Crown Prince to visit Japan next week + trip to Pakistan is on the table

Crown Prince and Prime Minister Mohammed bin Salman is heading to Japan and could soon visit Pakistan, two reasonably rare official trips outside of our region.

Prince Mohammed will start a four-day official visit to Japan on Monday, 20 May, the Japanese Foreign Ministry said in a statement. Bin Salman will hold separate meetings with Emperor Naruhito and Japanese Prime Minister Fumio Kishida. It will be the Crown Prince’s first visit to Tokyo since 2019.

In context: Saudi is Japan’s top supplier of crude oil and its eighth-largest trade partner, with some USD 42 bn in goods and services flowing between the two last year. The Public Investment Fund is also the largest shareholder of videogame maker Nintendo, Bloomberg points out.

AND- Arrangements are being “worked out” for the Crown Prince’s visit to Pakistan, Pakistan’s Geo News reported yesterday, citing officials in that country’s government. Plans for the visit were first made public by Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar last week after the conclusion of a visit by a delegation of senior Saudi officials to Pakistan during which they attended a two-day investment conference. There had been rumblings that the visit could take place as early as this month, but officials have yet to confirm a date.

The visit could help help close a series of agreements important to Pakistan: Foreign Minister Prince Faisal bin Farhan visited Pakistan last month nearly a week after Pakistan’s prime minister discussed a USD 5 bn investment package during a meeting in Makkah with the Crown Prince. Saudi has been among key supporters of crisis-hit Pakistan, extending the term of a USD 3 bn in deposit at the State Bank of Pakistan for an additional year to mature in December 2024. This is in addition to USD 2 bn in financial assistance from the Kingdom last year to shore up the country’s finances.

US energy secretary to visit Riyadh this week, suggesting progress on nuclear power agreement

US Energy Secretary Jennifer Granholm will be in Riyadh this week and will also touch down in the UAE in what US officials say is her first official trip to the region. Granholm will touch down first on Tuesday in the UAE, where she’ll attend a meeting of the Net-Zero Producers Forum before heading to Riyadh. Her trip is scheduled wrap up on Thursday.

Why it matters: Granholm’s department runs point on civilian uses of nuclear energy in the US, overseeing everything from safety to research. Washington and Riyadh are believed to be negotiating a series of pacts covering defense, artificial intelligence and advanced technologies, and the development of a Saudi nuclear power industry as part of a wider arrangement that could see Saudi normalize ties with Israel.

Also on the agenda: “Climate cooperation” and energy diversification are expected to get top billing.

Not on the agenda: A discussion of oil policy, Reuters reports. Bloomberg also has the story.

What’s the Net-Zero Producers Forum? Launched in 2021, it’s part of a bid to boost cooperation between some of the biggest global oil producers on methane abatement, carbon capture, and use and storage technologies. Saudi is one of the five founders of the NPF including the US, Canada, Norway, and Qatar. The UAE joined the group in 2022. NPF members account for 45% of global oil production and 40% of natural gas production, according to the US Energy Department website.

OIL WATCH-

The International Energy Agency is advising Opec+ against doing anything that would drive up oil prices when the alliance of producers next meets on 1 June meeting in Vienna, Bloomberg reports citing remarks by Fatih Birol, the agency’s executive director.

The concern: Higher oil prices are likely to drive up inflation.

What Biral said: “It’s up to them to decide what they’re going to do, but in this very fragile situation of the global economy, the least that the countries, especially oil-importing developing countries, would need is high oil prices, which in turn would push the inflation numbers up.”

The expectation: Pundits surveyed by the business information service see the oil cartel extending oil output cuts through the end of the year in their next meeting.

Saudi Tourism Authority inks 40 agreements at Arabian Travel Market to promote Kingdom as year-round tourist destination

The Saudi Tourism Authority (STA) left Dubai’s Arabian Travel Market (ATM) with some 40 fresh partnerships in the bag, it said in a statement. The four-day event, which kicked off last week, saw STA ink agreements with airlines, hotel operators, and other players in the tourism and hospitality sectors as part of its bid to “promote the Kingdom as a year-round tourist destination,” STA CEO Fahd Hamidaddin said.

Among the highlights:

Riyadh Air — a fully owned subsidiary of the Public Investment Fund — has inked an MoU with STA to open new air routes, secure global sponsorships, and develop travel loyalty programs to “increase Saudi’s connectivity with the world.” It also inked an MoU with AlUla at the event to boost tourist volumes to the landmark heritage site;
China i2i — a Shanghai-based media company — inked an MoU with the authority to market for Saudi travel hubs in the Chinese market and manage and run the China Visitors Summit in Saudi (CVS Saudi);
Dubai-based e-commerce company Noon inked an MoU with STA that would see it create seasonal campaigns promoting travel to the Kingdom in addition to providing exclusive deals and key Saudi events booking to its users;
MJS Investment — a Riyadh-based hospitality company — also sealed an MoU with the authority to co-launch unique tourism experiences in the Kingdom, including Saudi culinary tours and courses;
Quintessentially — a luxury lifestyle management tool — signed an MoU with the authority to promote Saudi historical and cultural sites, Arabian hospitality and introduce the company’s luxury products and services into the local market;
Egylière — an Egyptian luxury travel agency — inked an MoU with STA to introduce and promote Saudi luxury tourism destinations on its online platform;
Jetex — a global private jet operator — inked an MoU with the authority to market for luxury local destinations within its Elite program database, and promote Jetex products within the local tourism market;
Trofi — a Saudi food and hospitality company — signed an MoU with STA aimed to promote local tourism.

Acwa Power’s bottomline up in busy 1Q

Acwa Power’s net income grew 9.8% y-o-y to SAR 296.2 mn in 1Q 2024 on the back of higher income from the recycling of hedge reserves after the discontinuation of some hedging contracts, it said in an earnings release (pdf). Its revenues were down 6% y-o-y to SAR 1.3 bn due to lower development and construction management fees and lower finance lease income due to a forced interruption of service at one of its plants in Morocco.

Acwa Power has been busy in 1Q: Some of the highlights by the renewables giant during the quarter included signing of a water purchase agreement for Senegal’s first desalination project under a public-private partnership and a power purchase agreement for Uzbekistan’s Nukus2 200 MW wind farm and battery energy storage system. Acwa Power also received the commercial operation certificate to begin operating the third and final phase of its 1.5 GW Sudair solar project. It also received a similar certificate for its Al Taweelah desalination plant in Abu Dhabi. It also achieved financial close for the solar-powered Hassyan water desalination project in Dubai.

AND- Acwa Power said a forced outage at its Nooro 3 solar plant in Morocco due to technical issues at the molten salt tank saw it take a charge for an SAR 109.3 mn impairment. The plant will remain out of operation until the end of the year, it said. Acwa also said that unprecedented rainfall in the UAE in April led to “limited disruptions” in operations, without providing further details.

China in sight: “I am optimistic about announcing our first project in China in the near future in addition to achieving several other milestones for either the existing projects in development or the new ones in our growth pipeline in the rest of the year,” CEO Marco Arcelli said.

JAMJOOM PHARMA-

Jamjoom Pharma’s net income grew 22% y-o-y to SAR 103 mn in Q1 2024on the back of a growth in sales despite the impact of the EGP devaluation, according to its earnings release (pdf) and disclosure to Tadawul. Its revenues were up 28.1% over the same period to SAR 385.5 mn in the same period on the back of higher sales volume across its key markets and the launch of new brands.

A look at revenues across its markets: Revenues from its KSA business rose by 24.9% y-o-y, while the growth in Jamjoom’s exports were driven by a 59.4% rise in revenues in Iraq and a 23% y-o-y increase in revenues by the Gulf market. However, revenues from North Africa dropped 3.3% y-o-y on the back of halted sales in Sudan due to the ongoing war. However, this was offset by strong performances in other markets, including Morocco. Revenues from its Egypt business more than doubled due to an increase in production in its new facility in the country.

Jamjoom also launched four new products in the first quarter of the year, including two consumer health brands, one ophthalmology and an anti-diabetic brand. Additionally, it experienced strong revenue growth in specific medical areas such as gastrointestinal, cardiovascular, general Medicine, and pain and inflammation during the quarter.

MODERN MILLS-

Modern Mills’ net income rose 1.4% y-o-y to c. SAR 65 mn in Q1 2024on the back of higher revenues and improved efficiency, it said in a disclosure to Tadawul. Its revenues were up 2.2% y-o-y over the same period to SAR 257.8 mn due to launch of new sub-categories, it said.

REMEMBER- Modern Mills made its debut on the main market in March after it sold a 30%stake in the IPO, which saw 20 percentage points allocated to institutional investors and the remaining 10 points to retail investors.

Al Rajhi Bank launches USD 1 bn in AT1 sustainable bonds. Plus: real estate and food security

DEBT WATCH-

Al Rajhi Bank has launched USD 1 bn in additional tier 1 sustainable sukuk, Reuters reported on Thursday, citing a document it has seen from one of the arranging banks. It tightened the final yield to 6.375% from an initial guidance of 6.875%. The debt transaction saw heavy demand from local and foreign investors with some USD 3.5 bn in orders. The sukuk are perpetual which in industry-speak means they have no fixed maturity rate, the lender said in a disclosure to Tadawul earlier in the day. The bonds can first be redeemed after five years, according to the bank.

AT1 bonds? The debt instruments act as a capital cushion for banks if their capital levels fall below a certain threshold. They are seen as the riskiest debt instruments that can be issued by lenders and therefore hold a higher coupon.

Advisors: Al Rajhi Bank hired our friends at HSBC, along with Al Rajhi Capital, Citigroup Global Markets, Dubai Islamic Bank PJSC, Emirates NBD Bank, Goldman Sachs International and Standard Chartered Bank as joint lead managers and bookrunners.

REMEMBER- The leading Islamic lender tapped the debt market for the first time this year in March after it closed USD 1 bn from its USD-denominated sustainable sukuk offering. The sukuk sale saw orders topping USD 2.8 bn.

REAL ESTATE-

#1- Egyptian real estate giant Talaat Moustafa Group (TMG) broke ground on their first project in Saudi, Aleqtisadiah reported yesterday, citing a statement from TMG. The integrated Benan city is being developed in eastern Riyadh’s Al Fursan in partnership with the National Housing Company. It will be home to some 27.8k residential units, along with a sports club and health, educational, and commercial services. The project marks the Egyptian real estate developer’s first overseas project. The project would carry a price tag of about SAR 65 bn (c. USD 17.3 bn) — 63% above an initial price estimate of SAR 40 bn (c. USD 10.7 bn) when the project was first announced in September in a TMG statement. It expects some SAR 40 bn in revenues from the project, media reports suggest.

You can expect calls from brokers soon: Interested buyers can start purchasing their units starting Wednesday, 15 May, according to TMG-Saudi website.

#2- Sumou Real Estate Co. signed a development management agreement with Inma Gate Al Gharbia Investment and Real Estate Development Co. to develop a project for Alinma Al Taif Real Estate fund, it said in a disclosure to Tadawul. Under the 24-months contract, Sumou will receive a development management fee of SAR 21.5 mn for the project, which spans an area of 2.1 mn sqm.

FOOD SECURITY-

Saudi, Ghana agree to boost agricultural ties: Environment, Water and Agriculture Minister Abdulrahman Alfadley agreed with Ghanian counterpart Bryan Acheampong to increase investments between the two countries in agriculture, livestock and others, state news agency SPA reported. They agreed on facilitating investments and expanding the scope of economic partnership between Saudi and Ghana. The meeting came as part of an African tour by Alfadley which included Ghana, Nigeria, Ivory Coast and Senegal.

Shares of supermarket player Spinneys jump in their Dubai Financial Market debut

Spinneys’ shares rose up to 11% on its trading debut on the Dubai Financial Market (DFM) on Thursday, before settling up nearly 5% at AED 1.6. Shares opened at AED 1.7, up from the final set price of AED 1.53. The IPO had raised AED 1.38 bn after receiving more than AED 71 bn in orders, marking a successful, rare listing of a private family business in Dubai.

This marks the third successful IPO of the year in the UAE, following Parkin and Agility Global’s successful debuts. Parkin had raised some AED 1.57 bn as the first IPO of the year in the country, while Agility Global’s technical listing on the ADX saw its share price jump more than fourfold on its first day of trading.

Advisors: Our friends at HSBC Middle East are joint global coordinators alongside Emirates NBD Capital and Merrill Lynch. Our friends at EFG Hermes are joint bookrunners, while Rothschild Middle East is independent financial advisor. Emirates NBD Capital is also acting as listing advisor, while Emirates NBD Bank is lead receiving bank. Other receiving banks include our friends at FAB as well as MBank and Commercial Bank of Dubai.

TASI	12,284	-1.4% (YTD: +2.7%)
MSCI Tadawul 30	1,537	-1.3% (YTD: -0.9%)
NomuC	27,086	+0.7% (YTD: +10.4%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	26,003	+0.1% (YTD: +4.5%)
ADX	9,090	-0.3% (YTD: -5.1%)
DFM	4,173	-0.2% (YTD: +2.8%)
S&P 500	5,223	+0.2% (YTD: +9.5%)
FTSE 100	8,433	+0.6% (YTD: +9.1%)
Euro Stoxx 50	5,085	+0.6% (YTD: +12.5%)
Brent crude	USD 82.79	-1.3%
Natural gas (Nymex)	USD 2.25	-2.1%
Gold	USD 2,375.00	+1.5%
BTC	USD 60,892	+0.1% (YTD: +44.9%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.4% on Thursday on turnover of SAR 7.3 bn. The index is up 2.7% YTD.

In the green: Al Babtain (+7.8%), Retal (+5.3%) and Tanmiah (+5.2%).

In the red: Gulf Union AlAhlia (-10%), Acig (-8.1%) and Al Etihad (-8%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.7% on Thursday on turnover of SAR 52.4 mn. The index is up 10.4% YTD.

In the green: Balady (+24.9%), Pro Medex (+8.8%) and Academy of Learning (+5.2%).

In the red: Dar AlMarkabah (-5.5%), Sure (-5.3%) and Molan (-4.2%)

CALENDAR

MAY

13 May (Monday): Saudi Giga Projects, Riyadh.

13-15 May (Monday-Wednesday): Smart Future Expo, Riyadh.

13-15 May (Monday-Wednesday): Poultry Expo Riyadh.

14-15 May (Tuesday-Wednesday): Saudi Great Futures, Riyadh.

15-16 May (Wednesday-Thursday): Arab Forum of Anti-Corruption, Riyadh.

16-18 May (Thursday-Saturday): Red Sea Fashion Week, The St. Regis Red Sea Resort.

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

20-21 May (Monday-Tuesday): Future Projects Forum, Four Seasons Hotel, Riyadh.

20-22 May (Monday-Wednesday): Future Aviation Forum 2024, Riyadh.

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

25 May (Saturday): Bidding deadline for Duba’s seawater reverse osmosis desalination plant in Tabuk.

27-28 May (Monday-Tuesday): Smart Data & AI Summit Saudi, JW Marriott Hotel, Riyadh.

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

2-3 June (Sunday-Monday): Global Project Management Forum, Riyadh.

4-7 June (Tuesday-Friday): Saudi Sports Show, Riyadh.

4-7 June (Tuesday-Friday): Aqarat Expo, Riyadh.

5 June (Wednesday): World Environment Day.

14-22 June (Friday-Saturday): Banks and capital markets closed for Eid Al Adha holiday.

AUGUST

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

SEPTEMBER

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

17-19 September (Tuesday-Thursday): EV Auto Show, Riyadh.

24-26 September (Tuesday-Thursday) Saudi Infrastructure Expo, Riyadh International Convention and Exhibition Center, Riyadh.

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

NOVEMBER

2-9 November (Saturday- Saturday): WTA Finals, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

11-14 November (Monday-Thursday): Cityscape Global, Riyadh.

25-27 November (Monday-Wednesday): World Investment Conference, Riyadh.

26-28 November (Tuesday-Thursday): Saudi Electricity Expo, Riyadh.

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

2025

FEBRUARY 2024

10-13 February (Monday-Thursday): Leap 2025, the Kingdom’s premier tech investment conference.

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