Good morning, wonderful people. Marketing Home Group’s stock debuted yesterday on TASI, slipping 5% and seemingly reverting to a broader trend of slumping IPOs. Meanwhile, We’re leaning on USD-denominated sukuk to cover the budget deficit with a new issuance that has attracted USD 15 bn in orders. Let’s dive in.

HAPPENING TODAY-

#1- Today is the last day for qualified investors to subscribe to Rawabi Marketing International’s IPO on Tadawul’s parallel market Nomu. Investors can book up to 775k shares each, with a minimum subscription of 10 shares. Final allocations will be made on Sunday, 7 September.

REFRESHER- The firm is offering 1 mn shares to fund its expansion plan, which centers on building two new warehouses in Dammam and Jeddah. The IPO was priced at SAR 35 per share, with the firm poised to raise SAR 35 mn in proceeds, implying a market cap of SAR 542.6 mn at listing, according to our calculations.

#2- The Sustainable Maritime Industry Conference (SMIC) kicks off today at the Ritz Carlton, Jeddah. The two-day event will bring together more than 50 transport ministries, ambassadors and maritime leaders, along with 60 sponsors and 3k participants. Discussions will cover maritime decarbonization, digitalization and security, regulatory frameworks, and sustainable marine practices, alongside workshops and site visits.

WEATHER- Thunderstorms and moderate rain are expected today in Asir, Al Baha, Makkah, and Jazan with lighter showers in Najran, while the Eastern Province, Riyadh, and Madinah will witness air-borne dust. Riyadh can expect a high of 42°C and a low of 31°C, while Jeddah will see temperatures peak at 38°C and drop to 30°C. Makkah‘s forecast is a high of 42°C and a low of 30°C.

In the fourth issue of our Destination Sahel series, we’re bringing you the latest updates on New Alamein City and a look at the best investments in Sahel today. We also investigate the growing issue of beach erosion and its impact on our shores.

Subscribe to our Egypt edition to get the scoop delivered to your inbox today at 10am Cairo Time. Missed the first three issues? Tap here to read the full series.

PSAs-

Registration is now open for Monshaat’s second phase of the refund initiative (Estrdad) valued at SAR 1.5 bn until 31 December 2026 for startups in their first three years, the authority said in a statement on Monday. The campaign, which targets startups and SMEs operational between 2024-2026, reimburses government fees like expatriate levy and commercial registration costs periodically to qualified enterprises until the end of 2028. The official initiative guide (pdf) provides full eligibility criteria for businesses.

WATCH THIS SPACE-

Arab National Bank (ANB) kicked off its USD-denominated AT1 sustainable sukuk offering yesterday, open to both local and international investors, with the offer period due to end today, it said in a disclosure to Tadawul yesterday.

About the offering: The perpetual sukuk carry a five-year call option, with size, yield, and final terms to be determined based on market conditions. Investors can subscribe starting from a minimum of USD 200k, in increments of USD 1k. The Reg S-compliant issuance will be listed on the London Stock Exchange’s International Securities Market.

ADVISORS- ANB Capital, Arqaam Capital, Citigroup Global Markets, Crédit Agricole Corporate and Investment Bank, Deutsche Bank, HSBC, Kamco Investment, Merrill Lynch International, SMBC, and Standard Chartered are tapped as joint lead managers and bookrunners.

Sumou Global Investment will funnel the SAR 500 mn raised from the latest sukuk issuance into accelerating the execution of projects in the pipeline, with a focus on hospitality and real estate, CEO Abdulrahman Al Qahtani told Asharq yesterday. The company has three operational hotels and nine five-starred hotels in the works, Al Qahtani added.

Looking ahead: The company plans to issue additional sukuk offerings in the future, coinciding with the financing growth needs or the acquisitions it eyes.

BACKGROUND- Sumou raised SAR 500 mn last month in SAR-denominated sukuk offering via private placement, tapping the debt markets for the first time with Riyad Capital acting as the sole arranger and bookrunner. Marked as the first sukuk issuance of its kind in the Kingdom’s real estate sector, the three-year senior secured sukuk issuance was upsized from SAR 300 mn after attracting almost twice the intended subscriptions from institutional and retail investors, with an 8.5% coupon quarterly.

CABINET WATCH-

The cabinet approved yesterday the formation of a three-year board of trustees for the Esports World Cup to be chaired by Crown Prince Muhammad bin Salman, during the meeting held in Riyadh, state news agency SPA reported.

The cabinet also approved a slew of agreements and decisions including:

• An MoU with Azerbaijan on plant quarantine cooperation;
• An MoU with the United Kingdom on mineral resources;
• An MoU with India for the peaceful use of space;
• A regional cooperation protocol on fisheries management in the Red Sea and the Gulf of Aden;

DATA POINTS-

#1- The private sector has provided some 49.5k new jobs for Saudi nationals between the start of 2025 and 16 August, the Human Resources and Social Development Ministry said in a statement on Sunday. The creation of the jobs was incentivized by the ministry’s inspection efforts, the statement said.

#2- Workplace injuries among workers aged 15 and above reached 245.7 non-fatal injuries and 1.1 fatal injuries per 100k workers in 2024, excluding road traffic injuries, the General Authority for Statistics said in a statement yesterday. Some 39% of workers received training in health and safety measures, 40.4% had access to a dedicated occupational health and safety department, and 32.2% underwent periodic medical examinations, while 95% of healthcare sector workers reported access to essential healthcare services.

OIL WATCH-

Opec+ is expected to keep crude production levels unchanged when members convene online this Sunday, according to a Bloomberg survey of traders and analysts. Seventeen respondents expect the group to keep output steady in October, while six forecast a modest hike.

The consensus reflects expectations that Riyadh will avoid pushing additional barrels into the market soon, balancing its bid for market share against the risk of weighing further on crude prices. This would mark a pause after the group’s recent supply surge, which came as prices slid nearly 9% this year and raised concerns of a looming surplus.

REMEMBER- The cartel has been steadily raising production since April, gradually reversing the bloc’s 2.2 mn bpd cut instituted in 2023, bringing Saudi Arabia’s quota to 9.75 mn bbl/d.

Officials have argued the ramp-up was aimed at regaining market share lost during years of supply curbs, though 1.66 mn bbl/d of idle Opec+ capacity is still scheduled to remain offline until the end of 2026, Bloomberg said. The group’s strategy has added pressure on prices, with some market watchers warning that further increases could exacerbate oversupply.

SPORTS-

The new hydrogen-powered off-road racing series Extreme H will launch in the Kingdom next month as a week-long World Cup, after earlier plans for a global calendar were scrapped, Al Arabiya reported yesterday. The new competition replaces the electric SUV championship Extreme E and will feature rally-style time trials and head-to-head races.

Start line pulled: The launch had originally been planned for April this year as part of a five-round global season, but technical and logistical hurdles around hydrogen delayed the start, series founder Alejandro Agag told Reuters. Future editions are also expected to remain in the region.

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THE BIG STORY ABROAD-

Google won’t have to sell Chrome after all: Tech giant Google will not be forced to sell Chrome or Android, according to the US Department of Justice ruling, instead it will be required to share more data with competitors and limit its exclusive distribution contracts — including its exclusive partnership with Apple for its Gemini chatbot. The ruling follows last year’s verdict that Google illegally monopolized the online search market.

Market reax: Google parent Alphabet’s shares rose over 8% in after hours trading, while Apple’s shares jumped 4.3% following the ruling, which was influenced by the rise of Gen-AI which is quickly becoming a threat to Google’s dominance of the search engine market. (Financial Times | Bloomberg | Washington Post | Wall Street Journal | The Guardian)

AND- It was a bad day for US stocks, which continued their slide on the back of an increase in corporate debt sales and concerns surrounding global debt. The S&P 500 fell 0.7%, the Nasdaq was down 0.8%, and the Dow Jones fell 0.5%. Meanwhile, yields on 30-year treasuries are almost at 5%. (Financial Times | Bloomberg)