Good morning, wonderful people, and welcome back. We hope you had a wonderful Eid vacation with family and friends — and that you’re ready for a packed issue this morning, because there’s no sign in sight of a summer news slowdown even as we officially slide into the season.

SO, WHERE DID WE LEAVE THINGS OFF? Shares of fintech player Rasan and aluminum products maker Talco popped in their first day of trading the Thursday before last. Rasan shares rose 30% (the most permitted for debuts) on day one, while Talco closed up 14%. That tracks with Miahona (also up 30% in their debut in early June) and Saudi Manpower (+21% in their Wednesday debut).

As for the pipeline? There’s lots more where that came from:

• Hotels and resorts operator Boudl has filed to go public;
• Electronics retailer Extra plans to IPO the unit that owns and operates Tasheel, its consumer finance arm, with many in the market expecting the transaction will now come in fall;
• 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;
• Perfume maker Arabian Oud is said to have appointed bankers ahead of a share sale;
• PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital;
• Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
• Budget airline Flynas is reportedly looking to go public this year.

WHAT ELSE was happening before the break?

• New shares of Aramco started trading. The USD 11.2 bn offering attracted heavy interest from foreign institutional investors. The oil giant’s shares rose 1.1% in their first day of trading after the issuance.
• Foreign investors in Saudi debt could be exempted from the 5% withholding tax on coupon payments under regulations now on the drawing board;
• PIF’s love affair with sports continues. The sovereign wealth fund is looking to set up a boxing league and is still in talks on a PGA / Liv Golf merger.

WATCH THIS SPACE-

#1- One step closer to a Saudi-US nuclear agreement? Members of the US Congress have been briefed on a proposed Saudi-US nuclear agreement that is part of what officials hope will be a landmark series of agreements between Riyadh and Washington, Bloomberg reports. Sen. Jeff Merkley (Democrat, Oregon) told Bloomberg that the Senate Foreign Relations Committee received a classified briefing on the agreement.

A shift of tactics? The Senate Foreign Relations Committee Chairman Senator Ben Cardin (Democrat, Maryland) said he has ordered staff to revisit limits that were enforced on arms sales to the Kingdom, signaling warming ties between the two countries, Bloomberg reported separately.

IN CONTEXT- The nuclear pact is part of a series of agreements that Saudi and US officials hope will open a new chapter in relations. It would also include a defense pact and a third agreement that will see Saudi give preference to US and Western advanced and AI technologies over Chinese rivals.

In other US-Saudi diplomatic news: Foreign Minister Faisal Bin Farhan and US Secretary of State Antony Blinken discussed the ongoing war in Gaza, as well as the situations in Yemen and Sudan, the ministry said in a post on X.

#2- Industry and Mineral Resources Minister Bandar Alkhorayef is set to touch down in Chile — the world’s second-largest lithium producer — next month, Reuters reports, citing a Chilean government source. Alkhorayef is looking into the possibility of sourcing lithium, a key component for EV and battery storage production. No date for the meeting has yet been set.

Why it matters: Lithium is a critical component of both modern consumer electronics and the green transition, factoring into everything from rechargeable batteries for phones and computers to electric vehicles and grid storage.

REMEMBER- Saudi is looking to source lithium from overseas: Al Khorayef said in April that Saudi will continue to source lithium from abroad as part of its plans for the nascent EV sector as securing domestic supplies were still at an early stage. “Lithium is a very important mineral that happens to be part of a very important part of the supply chain, especially for batteries,” he said.

#3- The subscription period for the fifth round of the retail sukuk saving program Sah begins today, the National Debt Management Center (NDMC) said in a post on X. The instruments carry a fixed yield of 5.55%. The minimum subscription amount for the June issuance was set at SAR 1k, while the maximum is SAR 200k per investor for the total duration of the program. The deadline for subscriptions is this Tuesday, 25 June.

Background: The Finance Ministry and NDMC launched the shariah-compliant retail saving instrument in a bid to diversify the nation’s savings offerings. The program features monthly issuances that carry annual fixed yields varying in value from month to month depending on market conditions. Every issuance matures in 12 months and has no subscription fee.

#4- Riyadh-based healthcare player Jana Medical landed Capital Market Authority approval for an IPO on Tadawul’s parallel market, Nomu, the authority said in a statement. The company is taking a 20% stake (642.5k shares) to market in an offering limited to qualified investors. The CMA’s approval of the offering will be valid for six months.

About Jana Medical: Founded in 2014, Jana Medical manufactures, imports, and supplies medical equipment across the country. Its clientele includes Saudi German Health, Al Hammadi Hospital, King Abdullah Medical Complex, and Dr Sulaiman Al Habib, according to its website.

REMEMBER- Local healthcare companies are on a roll: Fakeeh Care took a 21.5% stake to market earlier this month through an offering of both new and existing shares. Al Hammadi (2015) and Saudi German Healthcare (2016) led the way with high-profile IPOs, with Dr Sulaiman Al Habib, pharma group Al Nahdi Medical, and drugmakers Jamjoom Pharma and Avalon Pharma all having followed suit. Aster DM Healthcare, meanwhile, is said to be looking to spin off its GCC unit with a dual listing on Tadawul and the Dubai Financial Market.

#5- Over 100 people were briefly admitted to a public hospital in Jazan over suspected food poisoning linked to two unnamed fast food restaurants in the city, according to local media. The restaurants were temporarily shut down for investigations related to the suspected outbreak.

Strict measures on food safety: Officials ordered in May the recall of Bon Tum mayonnaise after it traced food poisoning outbreak to the condiment brand, which was being used by Hamburgini. 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, with a number of them sent to the intensive care unit.

DATA POINTS-

#1- North of 1.8 mn pilgrims took part in this year’s hajj, according data from statestatistics agency Gastat. Some 1.6 mn were foreign pilgrims, while the remaining were citizens and residents. The majority of foreign pilgrims were from Asia, while Arab pilgrims accounted for 22.3% of total pilgrims, followed by folks arriving from Africa (11.3%). The number of pilgrims this season was similar to 2023 levels. This is still below pre-pandemic levels, which saw over 2.4 mn people performing hajj in 2019.

#2- The Kingdom’s holding of US Treasuries rose 19.5% y-o-y to USD 135.4 bn in April, making it the 17th-largest foreign holder of US Treasuries, according to data from the US Treasury Department. On a monthly basis, Saudi holdings of US Treasuries inched down 0.37%.

#3- The total number of women holding leadership positions in the Kingdom’s labor market hit 1.7k in 2023, surpassing Vision 2030’s initial target of 1k women leaders, Saudi Gazette reported, citing a recent report from the Human Resources and Social Development Ministry.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Umrah visas are back on: The Hajj and Umrah Ministry has resumed its issuance of umrah visas for pilgrims, ending a near one-month hiatus due to the Hajj season, state news agency SPA reports.

AI to make Umrah-related travel easier: The Saudi Data and Artificial Intelligence Authority (SDAIA) is setting up new tech-enabled operational centers and data systems to facilitate pilgrims’ entry into the Kingdom post-Hajj season, according to SPA. The operational centers — which are being set up at key entry points across the Kingdom — are equipped with biometric registration stations, communication systems, and data rooms.

PLUS- Preparations for next year’s Hajj have begun: The ministry released “preliminary arrangements and timetable” for next year’s hajj season at this year’s closing ceremony, it said in a separate statement. No further details were provided.

#2- The Education Ministry will continue to apply the three-term system for the upcoming academic year, Okaz reported. The school year starts on Sunday, 18 August and will run until Thursday, 26 June 2025.

#3- You can still apply for the Zakat, Tax and Customs Authority’s (Zatca) fresh graduate programs Ameen and Binaa-Alkafaat until Saturday, 29 June, according to a statement by Zatca. The one-year programs are designed to train bachelor’s and master’s degree holders in the fields of zakat, tax, and customs regulations.

To make the cut: Applicants looking to join the Ameen program must hold a bachelor’s degree and be 25 years old or less, with a minimum GPA of 2.8, while those seeking the Binaa-Alkafaat program must either hold a bachelor’s or master’s degree and be under 28. They should also have a minimum GPA of 3.2.

ALSO- Zatca is encouraging individuals to make their voluntary zakat payments through its designated Zakaty website or mobile application, according to a statement. The Zakaty platform allows zakat payers to calculate different types of zakat, issue invoices, set reminders for zakat dates, among others.

#4- Property owners in six neighborhoods in Madinah can register assets starting next Sunday, 30 June through Thursday, 3 October, according to a statement from the Real Estate General Authority. The neighborhoods to be included in the real estate registry (RER) include parts of King Fahd, Al Aqool, Jamaa Um Khalid, Al Khadra, Abyar Al Mashi and Skat Al Hadid. The RER is wholly owned by the Public Investment Fund and aims to establish a real estate registry across the Kingdom to make it easier for individuals and corporations to know who has a clear title to a property when buying or selling.

#5- WEATHER- We’re looking at yet another hot and sunny day in Riyadh today, with a daytime high of 47°C and a nighttime low of 30°C. In Makkah, the mercury will peak at 45°C during the day before dropping to a low of 31°C at night. Madinah will see the temperature peaking at 45°C and falling to 30°C in the evening.

OIL WATCH-

The Kingdom’s crude production rose 1.6% m-o-m in April to 9 mn barrels per day (bbl / d), according to data Joint Organisations Data Initiative (Jodi) data. Crude exports dipped 6.9% during the same period to 6 mn bbl / d on the back of voluntary oil output curbs kept in place by Saudi and Opec+ until the end of September.

REMEMBER- The group of oil producers is expected to begin to “phase out the cuts of 2.2 mn bbl / d over the course of a year from October 2024 to September 2025.” The group is scheduled to meet again on Sunday, 1 December. The Kingdom plans to ramp up oil production to 9.1 mn bbl / d in November and then just above 9.2 mn bpd in December, according to Mubasher. Production is expected to further rise in early 2025, before reaching c.10 mn bpd between September and December of next year.

ALSO- The Kingdom’s crude oil deliveries to India hit a 10-month low in May, Reuters reported, citing traders and shipping data. The drop was largely attributed to Aramco raising the official selling price of its flagship Arab Light crude oil to Asian buyers for a second month in May. The Kingdom remains among India’s top three oil suppliers, after Iraq and Russia.

SPORTS-

#1- The Saudi Pro League is looking to snag some big names in the summer transfer window: Real Madrid captain Nacho Fernandez is reportedly in talks to transfer to Al Qadsiah after his current contract expires at the end of June, according to L’Equipe. News of Fernandez’s potential move to Al Qadsiah comes a week after separate reports, including from the New York Times, indicated the footballer was in talks to move to Al Ittihad. Real Madrid striker Joselu has also reportedly fielded “significant offers” from Saudi clubs, but plans on staying at Real Madrid, Madrid Universal reports.

FROM THE PREMIER LEAGUE- Manchester City goalkeeper Ederson has been “strongly linked with a move to Saudi Arabia” since last month, Sports Mole reports. The club — which could also see Kevin de Bruyne departing for Saudi — set Ederson’s price at EUR 40 mn. Meanwhile, Chelsea’s Romelu Lukaku is considering Al Hilal, though their interest in the striker is unclear.

#2- More signs of life from the LIV Golf-PGA merger: The outlook for discussions between the PGA Tour and PIF-backed LIV Golf is “very positive,” with “the right people around the table” on both sides of the negotiations, PGA Tour Commissioner Jay Monahan told the Associated Press on Thursday. The challenges in finalizing a potential agreement are merely hurdles to “overcome” with “a lot of different factors at play,” Monahan said. Monahan’s remarks come days after golf star Tiger Woods said he felt optimistic about the agreement following an in-person meeting in New York with PIF boss Yasir Al Rumayyan and PGA’s negotiating committee.

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THE BIG STORY ABROAD-

You can practically hear the bears salivating: The S&P 500 has now gone 377 days straight without a 2% sell-off as investors buy up big tech stocks, fueled by an AI boom that saw Nvidia overtake Apple and Microsoft as the world’s most valuable company last week. CNBC warns that “it’s unclear how long this low-volatility period will last” — it’s the longest stretch of its kind since the global financial crisis of 2007, leaving bears wondering what the catalyst for a selloff could look like.

Speaking of AI: Pundits are starting to ask whether the world’s electricity grids can handle the explosion of demand from both businesses and consumers. Forget, for a moment, whether AI is a feature, a core technology, or marketable product and toss aside the environmental impact of AI: Our collective hunger to play with ChatGPT, Bard, and the theft engine that is Perplexity has massive implications for power grids that are already being tested by the hottest summer on record.

Governments may need to selectively hike prices for power-hungry data centers and may have to reconsider climate targets. Consider Ireland, where data centers are on track to account for a third of the country’s energy use by 2026.

Go deeper with Bloomberg’s immersive and very well-reported AI is already wreaking havoc onglobal power systems.

IN OUR CORNER OF THE WORLD- Israel has killed at least 42 in a strike in Gaza and the IDF is also coming under intense criticism for strapping a wounded Palestinian to the front of an army jeep during a raid in the West Bank. With ceasefire talks at a standstill, the WSJ argues that America is running out of options to push through an end to the eight month-long conflict.

IT’S A HUGE WEEK IN THE US OF A: The international press on both sides of the Atlantic are gearing up for the first debate of the 2024 election cycle between Joe Biden and Donald Trump on Thursday that could influence what’s looking to be a very tight election.