Fakeeh Group shares start trading today

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Fakeeh Group debuts on Tadawul today

Good morning, friends. It’s a brisk news morning with no sign of a pre-Eid news slowdown yet in the cards.

HAPPENING TODAY- Trading of shares in Fakeeh Care Group will begin on Tadawul’s main market this morning. Shares will be allowed to trade within a ±30% band on each of the first three days before being capped at no more than 10% up or down after that before circuit breakers kick in. (All shares on Tadawul are subject to the 10% up-or-down rule.)

REMEMBER- Fakeeh Care’s IPO drew in strong demand, with the institutional tranche of the offering closing 119x oversubscribed, while the retail tranche was 14.5x oversubscribed. Abu Dhabi Investment Authority (Adia, the UAE’s largest sovereign wealth fund) and Olayan Saudi Investment are both cornerstone investors in the IPO. The Riyadh-based healthcare provider is taking a 21.5% stake to market through an offering of both new and existing shares. The IPO was priced at the top of the range at SAR 57.5 per share, setting it up to be the largest IPO so far this year with SAR 2.9 bn in proceeds.

Of healthcare, listings, and growing wealth: Bloomberg looks at the IPO and the group’s history as an example of a strong non-oil business amid the government’s economic diversification plan and an IPO boom.

Up next for capital markets: Miahona, Rasan, and Saudi Manpower are all in the last legs of their IPOs.

AND- The order window for Aramco’s blockbuster secondary sale closes tomorrow (Thursday, 6 June).

ALSO HAPPENING TODAY- The Growth Summit Riyadh and Digital Transformation Summit kick off and the Kingdom is host to World Environment Day.

WEATHER- Look a daytime high of 42°C today in the capital city with an occasional light breeze blowing. The mercury will dip to 32°C overnight — a pattern you can expect to extend for at least the next 10 days, per the long-range forecast on our favorite weather app.

WATCH THIS SPACE-

#1- Dubai-headquartered Dar Global — an arm of one the Kingdom’s largest listed real estate developers Dar Al Arkan — is looking to buy plots of land in Riyadh, Gulf News quotes Dar Global CEO Ziaad El Chaar as saying. “The residential options we plan to build there are targeted at the international investor market,” he said, without providing further detail. The move would mark the LSE-listed company’s first direct venture into the local market.

The pitch: “With Saudi Arabia now offering residency for life options for investors, the synergy is evident. It's an ideal moment to spearhead niche projects across pivotal Gulf cities that investors covet for their second homes,” El Chaar said.

#2- Aramco eyes two US LNG projects: Oil giant Aramco is reportedly in talks with Houston-based Tellurian over a potential stake purchase in the US firm’s 27.6 mn metric ton per annum (mtpa) Driftwood LNG plant in Louisiana, Reuters reports, citing sources it says are close to the talks. Aramco is also in separate talks with NextDecade for a long-term gas purchase agreement from the Texan company’s Rio Grande facility, Reuters’ sources say.

#3- Adnoc Distribution plans to invest around USD 250-300 mn annually in Saudi Arabia, the UAE, and Egypt over the next five years, Asharq Business quotes CEO Bader Al Lamki as saying. The Emirati company is looking to add some 15-20 fuel stations across the three countries within six months.

DATA POINTS-

The King Abdulaziz Port in Dammam set a new record for monthly handling capacity in May, with 291.6 standard containers, the Ports Authority (Mawani) said in a release. The figure surpasses the port’s March record by some 2k TEUs.

IN CONTEXT- Congestion in King Abdulaziz Port came after most Jeddah-bound maritime traffic was directed to the port in Dammam in reaction to ongoing attacks on shipping in the Red Sea. The crisis saw container handling at Dammam first growing by 41.3% y-o-y in February to reach the then-record high of 235.8k TEUs.

Tadawul’s equity market capitalization stood at SAR 10.2 tn in May, dipping 5.1% m-o-m despite the total value of shares increasing by 5.9% m-o-m to SAR 1.4 tn, according to the latest figures from Tadawul (pdf). The total volume of shares traded was also up 0.8% m-o-m to 5.5 mn shares.

SPORTS-

Manchester City midfielder Kevin De Bruyne is “open to everything,” signaling he could agree to a move to a Saudi club, reports Belgian outlet HLN. The Belgian superstar pointed to his being in a late stage in his career, as well as the attractive financial packages on offer from Saudi, as important pull factors to consider. The 32-year-old has secured six Premier League titles in his nine seasons with ManCity, which completed the treble in 2023.

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THE BIG STORY ABROAD-

A third term for Modi… maybe: Indian Prime Minister Narendra Modi is on track to become the country’s first prime minister to secure a third term in over 60 years after his coalition the Bharatiya Janata Party (BJP) won a little more than half of the 543 seats in the country’s lower house. Modi has lost his parliamentary majority — a surprise to pundits — and now has to work with allies to form a government. The opposition INDIA alliance holds some 233 seats. The result is seen as a blow to Modi’s dominance, with analysts noting a shift towards “alliance politics” and a more negotiated government. (FT | Reuters | CNBC)

What’s next? Bloomberg is out with a piece detailing what went wrong for Modi and what we expect next from the Indian government.

ALSO IN ELECTIONS- Sunak vs. Starmer. UK Prime Minister Rishi Sunak went head-to-head with Labour Party leader Keir Starmer in their first debate weeks before the Brits head to the polls. Their debate saw them take digs at each other’s election promises, with Sunak telling viewers that Starmer’s party will “raise your taxes. It’s in their DNA. Your work, your car, your pension.”

Round two: The two will face off again on 26 June and take part in a seven-way debate on Friday, Bloomberg writes. (The Guardian | The Washington Post | FT | BBC)

OIL WATCH- Oil extends losses: Oil prices fell another USD 1 a barrel yesterday, extending losses that pushed them to four-month lows. Brent crude fell to a low of USD 76.76 a barrel yesterday, while US West Texas Intermediate crude fell to USD 73.25. Brent has now fallen 8% over the past week, as “rising oil inventories and weak economic data have fuelled concerns that global demand will remain depressed, while stubbornly high inflation will cause central banks to delay interest rate cuts,” writes the Financial Times.

CIRCLE YOUR CALENDAR-

The Global EV and Mobility Tech Forum will open its doors on Wednesday, 10 July to Thursday, 11 July at the Riyadh International Convention and Exhibition Center. The event will bring together policymakers, NGOs, and startups.

The Conference on Arbitration and Dispute Resolution in Energy, Oil, and Gas will be held in GCC countries for the first time in 2025, coming off the signing of a partnership between the GCC Commercial Arbitration Center, the Scottish Arbitration Center, and the International Conference on Law, according to state news agency SPA. The conference will bring together experts in international arbitration to discuss the legal, geopolitical, economic, and security aspects and challenges related to energy disputes in the GCC.

Saudi’s non-oil private sector activity grew even as demand momentum slows

Non-oil business activity continued to expand in May, albeit at a slower pace as demand lost some steam, according to the Riyad Bank Saudi Arabia PMI (pdf). The headline figure clocked in at 56.4 last month, down from 57.0 in April, remaining well above the 50.0 threshold that separates growth from contraction.

This marks the Kingdom’s second-lowest PMI reading in 22 months — only January’s two-year low of 55.4 was worse.

New orders rose at their slowest rate in just over two years: New orders — the biggest contributor to the headline index and typically its main driver — hit a 25-month low in May, on the back of higher competition and a slowdown in market activity. The subindex came in at 59.5, down from 61.0 in April, backed mainly by domestic sales, according to Reuters. Firms continued to shore up their inventories as they “sought to prepare for strong sales performances in the future,” Riyad Bank said.

The sub-index for output slipped to a five-month low, with the second-largest component of the PMI falling to 60.1 in May from 61.9 in April. The dip indicates a slowdown but remains firmly in growth mode cushioned by healthy demand, and an uptick in employment levels as businesses look “to fulfill pending workloads.”

What the pundits are saying: Saudi’s PMI “shows a positive trend, driven by increasing demand as evidenced by the rise in new orders. This growth has necessitated an increase in employment to meet the growing demand for goods and services,” Riyad Bank Chief Economist Naif Al Ghaith says.

REFRESHER- Non-oil growth is central to the Kingdom’s diversification strategy designed to reduce its reliance on oil revenues. The World Bank — and more recently Riyadh Bank — expect the local non-oil economy to grow a strong 4.8% this year, up from 4.4% in 2023. Meanwhile, the government is gunning for a non-oil GDP of 4.5-5.0% in 2024.

Firms are buying less, as their stock levels pile up: Input purchasing growth has slowed to a 32-month low, as “the rise in inventory levels and prices has prompted firms to adjust their purchasing behaviors to align with their sales strategies,” Al Ghaith said.

Input costs saw “a solid increase” during May, although non-oil firms reported easing purchasing price inflation compared to the start of the year. “Nevertheless, the passing on of higher costs to customers remained only partial, as indicated by a marginal rise in selling prices.” Firms continued to be cautious with their pricing as competition grew stiffer, and offered further price markdowns in a bid to gain new customers and orders.

Higher employment despite lower optimism: Market sentiment dropped to its lowest level since January, the report read, despite forecasts indicating that the Kingdom’s non-oil GDP will continue on an “upward trajectory,” Al Ghaith said. Meanwhile, employment levels grew during the month as firms looked to reduce their order backlogs.

FROM THE REGION-

Egypt’s PMI soared to a 33-month high of 49.6 in May (pdf) from 47.4 in April;
Kuwait’s PMI edged up to 52.4 in May (pdf) from 51.5 in April;
Qatar’s PMI rose to an 8-month high of 53.6 in May (pdf) up from 52 in April;
The UAE’s PMI will be out later this morning.

Brazilian firm is looking to Saudi investors to set up USD 600 mn fund

Brazilian private equity firm EB Capital Gestao de Recursos is hoping to raise some USD 300 mn from Saudi investors to launch a USD 600 mn fund, Bloomberg reports. The firm — which manages close to USD 1 bn in assets — is in talks with Saudi investors to back the fund, with an eye to launch it by 3Q 2024, the business information service says, without providing further details on the investors EB Capital is in talks with.

The pitch: Backing the fund would open up a path for “Saudi investors to approach the Brazilian market,” EB Capital’s founder and CEO Eduardo Melzer tells Bloomberg. EB Capital is looking to invest in Brazil’s climate and energy sectors.

REMEMBER- Saudi and Brazil have both been showing interest in expanding their trade and investment ties, establishing the Saudi-Brazilian Coordination Council after it was approved by the Cabinet back in February.

Acwa partially offloads stake in Rabigh Arabian Water and Electricity

Acwa Power signed a share purchase agreement to offload 30% of its stake in Rabigh Arabian Water and Electricity (Rawec) to Hassana Investment Company — the investment manager of General Organization for Social Ins. (GOSI) Investment Ventures — for SAR 844 mn, according to a disclosure to Tadawul yesterday. Prior to the transaction, Acwa owned 99% of Rawec.

Ironing out the details: The sale is part of Acwa’s strategy to recycle its capital and optimize its portfolio, the disclosure read. The transaction involves two other entities: Oasis Power One Conventional Energy and Water Company — a wholly owned subsidiary of Acwa — and the buyer, GOSI Investment Ventures. Proceeds from the sale will be used to support Acwa’s ongoing business operations, it added. Additionally, the sale will result in a decrease in the earnings contribution from RAWEC to the overall net income of the group.

About Rawec: Rawec is an independent water, steam, and power producer (IWSPP) that was established in 2005 to build, own, and operate the utilities required for the Rabigh Refining and Petrochemical plant, which is jointly owned by Aramco and Sumitomo Chemical.

A snapshot of the financials: Rawec’s net income dropped 6.7% y-o-y to SAR 358.6 mn in 2023, meanwhile its revenues rose 4.2% y-o-y to SAR 632.8 mn in 2023, according to its financial statement (pdf). Rawec’s asset book value amounts to SAR 731 mn.

MARKET REAX- Acwa’s shares were down 2.5% at market close to reach SAR 407 per share.

IN OTHER M&A NEWS-

Saudi Advanced Industries Company (SAIC) signed a non-binding MoU to acquire up to 100% of Dar Al Balad Business Solutions, it said in a disclosure to Tadawul. The acquisition would, if closed, see SAIC grow and expand Dar Al Balad with an eye to take it public within two years, the disclosure reads. The MoU expires in six months but can be extended by agreement. No further details or financial information was disclosed.

Al Ashghal Almoysra to debut 20% stake on Nomu

Local contractor Al Ashghal Almoysra is looking to offer a 20% stake — 480k ordinary shares — on the Nomu parallel market, its financial advisor and lead manager Yaqeen Capital said in a statement to Tadawul yesterday. The company received approval from the Capital Market Authority (CMA) for the listing in late March.

Post IPO structure + lock-up period: The five substantial shareholders are selling down their positions to a combined 80%. They are prohibited from conducting any transactions on their shares for a period of 12 months from the first day of trading.

Timeline: Qualified investors can place orders on a minimum of 10 shares and a maximum of 119,990 shares from Sunday, 7 July to Monday, 15 July, according to its prospectus (pdf). The final allocation of shares will take place on Sunday, 21 July, and refunds, if any, on Tuesday, 23 July.

Use of proceeds: Some SAR 2.3 mn will be used to cover all the offering related costs including fees for the financial advisor, subscription manager, and other advisors, as well as other expenses, the prospectus reads. The remainder of the net proceeds will go entirely to the selling shareholders, it added.

About Al Ashghal Al Moysra: The company specializes in facility management, contracting, and provision of logistics and transport solutions across the Kingdom and was established in 2013 in Sakaka, Al Jouf.

A snapshot of its earnings: The company saw its net income rise 10.4% y-o-y in 9M 2023 to SAR 6.7 mn, while revenues during the period rose 5.3% y-o-y to SAR 37.8 mn, its prospectus showed.

ADVISORS- Yaqeen Capital is serving as the financial advisor and lead manager, while Al Rajhi Capital, Riyad Capital, Alinma Investment, AlJazira Capital, Alawwal Invest, Derayah Financial, Saudi Fransi Capital, SNB Capital, Alistithmar Capital, Albilad Capital, ANB Capital are all receiving agents.

Flyadeal eyes wide-body jet order to support expansion plans

Budget airline and Saudia subsidiary Flyadeal could purchase between 10 and 20 wide-body jets in an order worth up to USD 5 bn as it looks to expand its passenger capacity, CEO Steven Greenway tells Reuters. The airline is still “in the early stages” of mulling the order and is comparing the Boeing 787 and Airbus A330ne, with no formal competition between the aircraft manufacturers yet.

Does Flyadeal need the excess capacity? Although budget airlines have historically struggled with operating large aircrafts Greenway dismissed these concerns, highlighting the potential for increased seat capacity for popular destinations such as Dubai. The wide-body jets can seat up to 400 passengers in an all-economy configuration, almost twice the capacity of Flyadeal’s current 240-seater planes.

The order is part of Flyadeal’s long-term vision, which includes securing a minimum of 10 wide-body aircraft within the next 3-5 years, Greenway said.

REMEMBER- Saudia had placed the largest aircraft order in the Kingdom’s history in May, purchasing 105 narrow-body aircraft from Airbus — 54 for Saudia and 51 for Flyadeal — worth USD 19 bn. Saudia has set a goal to increase its passengers to 330 mn and expand its destinations to 250 by 2030.

IN OTHER AVIATION NEWS-

PIF-owned Riyadh Air has secured two new Asian partnerships, signing two separate MoUs with Air China and with Singapore Airlines on the sidelines of the International Air Transport Association (IATA) Annual General Meeting (AGM) in Dubai, it said in two separate statements here and here. The airline has been looking to expand its partnership network.

ALSO- The maiden flight between China’s Shenzhen and Riyadh took off on Monday, Xinhua reports. This was the fifth direct flight to the Middle East from Shenzhen and carried over 200 passengers mainly for business, service and travel. The other Middle Eastern routes include Cairo, Dubai, Tel Aviv and Tehran.

Saudi Arabia captures 53% of MENA venture debt in 2023 -Magnitt

Saudi startups raked in USD 400 mn in venture debt (VD) in 2023, rising 602% y-o-y, according to venture data platform Magnitt’s FY 2023 Venture Debt report. VD in MENA hit an all-time high of USD 757 mn during the year, with Saudi accounting for 53% of the region’s total.

UAE + Egypt round out the lion’s share: The UAE and Egypt together accounted for 39% of total venture debt across the region last year, according to the report. Startups in the UAE secured USD 353 mn in VD in 2023, up 222% y-o-y, while Egyptian startups secured USD 4 mn in VD, marking an 86% y-o-y drop.

The standout sectors: Fintech accounted for 79% of MENA's total VD lending in 2023, owed in large to BNPL giants Tabby and Tamara, which together raked in USD 600 mn of the total USD 601 mn financing for fintech players. Transport and logistics followed with USD 150 mn, and e-commerce had a seat at the table with USD 3 mn.

Despite the rise in VD funding value, funding volume dipped across the region: Venture debt transactions in the UAE dropped 25% y-o-y to six, while Egypt saw an annual decline of 75%, with two transactions. Saudi bucked the trend, doubling the number of venture debt transactions y-o-y to four in 2023.

A changing financing ecosystem: VD lending to equity financing ratio shifted to 28% in 2023, from just 1.4% in 2020.

Ataa Education sees revenue, net income inch up in 1Q 2024

Ataa Educational’s net income inched up 1.6% y-o-y to SAR 10.9 mn in 1Q 2024 on SAR 161.4 mn in revenues, up 3.3% y-o-y, it said in a disclosure to Tadawul. Its net income grew 7.4% y-o-y to SAR 44.4 mn over the first nine months of its fiscal year, which begins in July. Revenues grew 1.5% y-o-y during the same period to SAR 498.4 mn.

Deep dive: The education group attributed its bottomline growth on the back of it acquiring minority interest in three schools — Al Yasmine, Al Alsun and Jeel AlMajd. The rise in net income came despite the acquisitions increasing financing costs by 8% on a quarterly basis, and 24% on a yearly basis. Ataa’s revenues also increased due to better performance in its education segment, which increased by 7%.

Arabian Drilling suspends two offshore rigs with Aramco

OIL & GAS-

Arabian Drilling has suspended two of its Saudi offshore rigs with Aramco for 12 months, it said in a filing to Tadawul (pdf). The drilling contractor has been in discussions with the state-owned giant since earlier in April to put off three of its rigs in Saudi. It has decided not to renew its contract with Aramco for the third rig — which is set to expire this month — citing high costs as the main reason.

What’s next: Arabian Drilling is reportedly looking to operate its now-suspended rigs overseas, according to the filing. It is currently in talks with contractors outside of the Kingdom.

REGULATION WATCH-

Cabinet approved Sama’s draft principles for compliance and internal auditing at finance and refinance companies during their online meeting yesterday, state-run SPA reports. The new regulations aim to create a regulatory framework for compliance for finance and refinance companies to help bolster internal control. They also aim to set minimum provisions to help measure firms’ compliance and audit progress. They will come into effect six months following their publication on the central bank’s website.

AVIATION-

#1- Indian budget carrier Akasa Air has lined up approval from the General Authority of Civil Aviation to operate flights to and from the Kingdom, state news agency SPA reports. The airline will run 12 commercial flights to Jeddah from Mumbai and two from Ahmedabad, starting next Sunday, 8 June, before launching seven flights to Riyadh from Mumbai starting Thursday, 4 July.

Akasa Air is ahead of schedule: The new airline was originally planning to launch two direct routes from Mumbai and Ahmedabad to Jeddah starting Monday, 15 and Sunday 20 July, it said last month. Jeddah is one of Akasa Air’s first-ever international destinations, second only to Doha.

#2- All roads lead to Riyadh: Italy’s national airline ITA Airways operated the first flight connecting Rome and Riyadh earlier this week, reports state-run news agency SPA.

TECH-

Huawei Cloud’s GaussDB has landed in Saudi: Huawei’s cloud computing arm has launched its database solution in the Kingdom, it said in a press release picked up by Zawya. The company says it is looking to support local companies in their “ digital transformation and business optimization in today's intelligent, AI-driven era.”

FINTECH-

Hajj pilgrims get a special e-wallet: The Hajj and Umrah Ministry has partnered with Saudi National Bank (snb) to launch Nusuk Wallet, an international e-wallet designed to help pilgrims manage their funds and expenses during their stay in Makkah and Madinah, state news agency SPA reports.

REAL ESTATE-

Tadawul-listed National Building and Marketing has secured a SAR 350 mn development contract from Al Fayzia Real Estate Development to carry out construction works for villas and residential apartments at the Granada Riyadh Project, it said in a disclosure to Tadawul.

TRADE-

Mawani and France’s Marseille-Fos Port will work together on smart ports, boosting international trade, supporting the marine environment and promoting the Green Ports initiative, after signing an MoU the Saudi Ports Authority said in a statement. The agreement was signed on the sidelines of the Vision Golfe 2024 forum held in Paris.

Mashreq’s USD 500 mn bond sale meets heavy demand, allows lender to lock in the lowest coupon by a UAE bank in past three years

Mashreq’s AT1 bonds were 4.4x oversubscribed: Our friends at Mashreq issued a USD 500 mn additional Tier 1 bond, yesterday, with an annual coupon rate of 7.125%, with a 270.5+ basis point (bps) reset margin, the lender said in a statement (pdf). The issuance carries the lowest coupon for AT1 bonds set by a bank in the UAE in the past three years.

Mashreq booked USD 2.3 bn in orders for the offering, making the sale 4.4x oversubscribed. The transaction saw the largest price tightening by any UAE bank for an AT1 issuance in the past five years, Mashreq said.

Who bought in? Some 77.5% of the offering was allocated to Middle East-based investors, while Europe (including the UK) snapped up some 19.5%. The balance was divided between Asian markets and offshore US interests.

Sound smart: The issuance carries Mashreq’s tightest-ever reset margin (+270.5 bps) for any of its bank capital issuances (AT1 and Tier 2) — that’s the tightest spread ever achieved on a conventional, USD-denominated AT1 benchmark issuance out of the Middle East. The transaction was Mashreq’s first since it raised USD 300 mn in its 2022 offering.

Use of proceeds: Mashreq will use the funds to “continue its growth plans into 2024 and beyond,” our friend Ahmed Abdelal, Mashreq’s Group CEO, said.

The marketing plan: Mashreq kicked off with a “well-attended global investor call” and then pushed through “a couple of days of intensive marketing” that included an in-person roadshow in London.

Uh, Enterprise, what are AT1 bonds? They're a common way for banks to raise core tier-one capital without diluting shareholders by issuing new equity. Additional tier one certificates (or "AT1 certificates") are a type of subordinated debt, meaning they rank below other types of bank debt in the event of liquidation. This makes them riskier than senior debt, but still gives them priority over equity holders. AT1 certificates are “perpetual,” having no fixed maturity date. They pay interest similarly to bonds, but can often be converted into equity under certain conditions, which is why they are often referred to as CoCos, short for “contingent convertibles,” in the industry.

BACKGROUND- Mashreq hired banks to advise on the issuance last week. The bonds will be perpetual and non-callable for 5.5 years, meaning Mashreq cannot redeem them within this period without incurring a penalty.

ADVISORS- Mashreq appointed Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait’s DIFC branch, BofA Securities, Citi, Emirates NBD Capital, FAB, Kamco Investment Company, Mashreq, and Mizuho as joint lead managers and joint bookrunners.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with the Nikkei and Shanghai Composite in the red, while the ASX 200, Kospi, and Hang Seng are all in the green. US equities futures were comfortably in the green overnight as traders look forward to yet another data dump later today — this time May private payroll data from ADP. Futures for major European benchmarks were all up in overnight trading with the exception of France’s CAC 40.

TASI	11,612	-1.7% (YTD: -3%)
MSCI Tadawul 30	1,453	-1.6% (YTD: -6.3%)
NomuC	26,033	-2% (YTD: 6.1%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	6.5% repo	5.5% reverse repo
EGX30	26,973	0.6% (YTD: 8.4%)
ADX	8,919	0.0% (YTD: -6.0%)
DFM	3,986	-0.2% (YTD: -1.8%)
S&P 500	5,291	+0.2% (YTD: +25.4%)
FTSE 100	8,232	-0.4% (YTD: +6.5%)
Euro Stoxx 50	4,953	-1.0% (YTD: +9.6%)
Brent crude	USD 77.52	-1.1%
Natural gas (Nymex)	USD 2.62	+1.3%
Gold	USD 2,348	0.0%
BTC	USD 70,399	+1.9% (YTD: +66.6%)

THE CLOSING BELL: TADAWUL-

The TASI fell 1.7% yesterday on turnover of SAR 7.1 bn. The index is down 3% YTD.

In the green: Sal (+2.7%), Saudi German Health (+2.5%) and Tanmiah (+2.5%).

In the red: Al Baha (-7.1%), Al Rajhi Takaful (-5.8%) and NCLE (-5.4%).

THE CLOSING BELL: NOMU-

The NomuC fell 2% yesterday on turnover of SAR 63.1 mn. The index is up 6.1% YTD.

In the green: Knowledgenet (+9.5%), Miral (+8.7%) and Food Gate (+8.1%).

In the red: Pro Medex (-8.9%), Burgerizzr (-8.8%) and Academy of Learning (-8.6%)

CORPORATE ACTIONS-

Kingdom Holding’s general assembly approved the distribution of SAR 1 bn in dividends at SAR 0.28 per share for 2024, it said in a filing to the exchange. The general assembly also signed off on the purchase of additional shares in Citigroup worth SAR 1.7 bn.

The board of National Gas and Industrialization Company approved the distribution of SAR 80.5 mn in dividends at SAR 1.1 per share for the first half of 2024, it said in a disclosure to the exchange. The eligibility date is set at 8 July and the distribution date at 22 July.

Tadawul-listed Bawan Company’s board greenlit a SAR 90 mn in dividends for 2H 2023 at SAR 1.5 per share, it said in a statement (pdf). The distribution date was unannounced.

Tadawul-listed Zahrat Al Waha for Trading’s board has approved the distribution of SAR 30.4 mn dividend for FY 2023 at SAR 1.35 per share, it said in a disclosure to Tadawul. The distribution date will be announced later, it added.

Shareholders of Al Sagr Cooperative Ins. recommended a 114.3% capital increase to SAR 300 mn, through a SAR 160 mn rights issue, according to its prospectus (pdf).

Saudi Fisheries has submitted its request for a capital reduction to the Capital Market Authority for approval, it said in a regulatory filing to Tadawul. The food manufacturer is gearing to cancel 66.2% of its share capital in an effort to offset incurred losses, according to an earlier disclosure to the exchange. The move — which falls under the company’s restructuring plan — will bring its capital down to SAR 135.2 mn.

Defense pact with Brazil + Islamabad is drafting a strategic partnership agreement

KSA, Brazil pen MoU to boost defense ties: Defense Minister Prince Khalid bin Salman bin Abdulaziz inked an MoU with Brazil’s Vice President and Development Minister Geraldo Alckmin for the two countries to cooperate on developing and localizing defense technologies, state-news agency SPA reports. The agreement will also work to enhance research and development efforts in the field.

Pakistan is working on drafting a strategic partnership agreement with Saudi, Prime Minister Shehbaz Sharif tells Asharq Alawsat. The two countries are working closely to develop ties and mutually beneficial economic and strategic relations, Sharif said. Pakistani officials said last month that arrangements were being “worked out” for Crown Prince and Prime Minister Mohammed bin Salman to visit Islamabad.

CALENDAR

JUNE

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

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

5 June (Wednesday): Growth Summit Riyadh, InterContinental Riyadh, Riyadh.

5 June (Wednesday): World Environment Day.

5 June (Wednesday): Digital Transformation Summit, Riyadh.

6 June (Thursday): Saudi Manufacturing Show, Riyadh.

10 June (Monday): #teamLabBorderless, Jeddah.

10 June (Monday): Deadline to register for school bus services for the upcoming academic year.

20 June (Thursday): Norah premiers in theaters.

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

28 June (Friday): Start of Jeddah Season 2024, Jeddah.

JULY

4 July-25 August: (Thursday-Sunday): Esports World Cup, Boulevard Riyadh City, Riyadh.

10-11 July: (Wednesday-Thursday): Global EV & Mobility Tech Forum, Riyadh International Convention & Exhibition Center, Riyadh.

AUGUST

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

SEPTEMBER

10-12 September (Tuesday-Thursday): Global AI Summit, Riyadh.

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

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

18-19 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam.

18-19 September (Wednesday-Thursday): IDC Saudi Arabia CIO Summit 2024, Riyadh.

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

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

OCTOBER

21-22 October (Monday-Tuesday): Smart Ports & Logistics Transformation Summit, Riyadh.

29-31 October (Tuesday-Thursday): Future Investment Initiative Conference, Riyadh.

31 October (Thursday): No-visa travel for Saudis to Montenegro on charter flights expires.

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.

18-20 November (Monday-Wednesday): The Heavy Equipment and Truck Show, Dammam.

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

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

DECEMBER

1 December (Sunday): Opec+ to meet

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

11 December (Wednesday): FIFA Congress, which will decide the hosting countries for the FIFA World Cup 2030 and 2034

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.

2026

UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia.

2027

The World Water Forum takes place in Riyadh.

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