Modern Mills says it will price its IPO at SAR 44-48 per share

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Sama confirms Founding Day, Eid holidays + Ramadan work hours in Saudi Arabia

Good morning, friends, and welcome to what’s shaping up to be a busy workweek as the pace picks up with just three weeks left until the first day of Ramadan.

PSA #1- It’s a holiday-shortened week: We’re four sleeps away from the weekend after the Ministry of Human Resources and Social Development confirmed Thursday, 22 February, is a national holiday for the private and public sectors in observance of Founding Day, state news agency SPA reports.

PSA #2- You may now make Eid plans: Banks and financial institutions will be off for Eid Al Fitr holiday from Friday, 5 April through Saturday, 13 April, Sama said on X last week. They will also be off from 14 June to 22 June for the Eid Al Adha holiday.

Bank branch hours during the Holy Month of Ramadan will be from 10am through 4pm, Sama noted.

HAPPENING TODAY-

Restatex Riyadh Real Estate Exhibition will open today in Riyadh and runs until Wednesday.

AND- Speaking of events: The Kingdom will host the World Water Forum in Riyadh in 2027, state news agency SPA reported, after the forum’s board opted to come here rather than go to Italy. The event is the largest international gathering in the industry.

WEATHER- Expect scattered clouds in Riyadh today, with a strong breeze in Jeddah and Dammam.

Riyadh: 21°C daytime / 13°C overnight
Jeddah: 28°C daytime / 19°C overnight
Dammam: 23°C daytime / 15°C overnight

WATCH THIS SPACE-

#1- Acwa Power to sign solar plant agreement in Iraq:Acwa Power is set to sign a contract with Iraq's Electricity Ministry to build and operate a 1 GW solar power plant in Najaf, according to a ministry statement on Wednesday. The agreement had been delayed for three years.

More to come? Iraq has been in talks with Acwa Power for a 1 GW solar plant and with UAE’s Masdar for another 1 GW project in its western regions. The country plans to sign agreements for 3.7 GW of renewable energy by the end of the year.

#2- A new fund to boost Arabic film content: The General Entertainment Authority (GEA) has launched an investment fund in what is says is a bid to raise the quality of Arabic firm content across the region, according to a statement by the GEA last week. The Big Time investment fund will focus on film production and distribution, according to the statement. It will see GEA as main sponsor and the Culture Ministry as co-sponsor. GEA did not disclose the size of the fund or say when it would begin investing.

OIL WATCH-

Global oil demand growth is losing steam, IEA says: The International Energy Agency (IEA) slashed its 2024 projection for global oil demand growth in its latest monthly report, It sees the pace of expansion decelerating further to 1.2 mn bpd this year from 2.3 mn bpd in 2023 on the back of a decline in consumption in China. It has previously forecast a global oil demand growth of 1.24 for 2024. “The expansive post-pandemic growth phase in global oil demand has largely run its course,” it said.

And we’ll see supply grow: The IEA raised its forecasts for global oil supply in 2024, expecting it to grow by 1.7 mn bpd on the back of increased supply from non-OPEC+ countries — think shale producers in North America.

SPORTS-

#1- The first professional table tennis competition is coming to Jeddah in May: The “Saudi Smash” edition of the Grand Smash 2024 Table Tennis Championship kicks off at the King Abdullah Sports City on Wednesday, 1 May, featuring elite international players competing in singles and doubles (for men and women), and mixed doubles, state news agency SPA reports.

Are you a fan? Check out World Table Tennis’ statement for more. Saudi players will be awarded wildcards for a chance to compete against world champions.

#2- A mixed message from Tiger Woods: Tiger Woods said that talks between the PGA Tour and the Public Investment Fund (PIF) are still ongoing, but hinted the tour thinks it could do without the sovereign wealth fund’s cash, Reuters reports. Woods is a member of the tour’s policy board.

His statements come amid speculation that the PGA Tour could walk away from its proposed merger with PIF-backed Liv Golf and the European Tour after it secured earlier this month a USD 3 bn investment from the Strategic Sports Group. The PIF and PGA Tour agreed to extend talks into this year after failing to agree on terms before a 31 December deadline.

CIRCLE YOUR CALENDAR-

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

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

The Future Investment Initiative (FII) will host a two-day priority summit in Miami starting Thursday, 22 February.

The annual tech event LEAP will open in Riyadh on Monday, 4 March and continue through Thursday, 7 March. Dubbed the “Digital Davos”, the event will bring together the global tech industry for discussions on the future of technology.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Saudi Arabia’s Modern Mills sets SAR 44-48 range for IPO as bookbuilding begins

Bookbuilding for Modern Mills Company (MMC)’s IPO began on Thursday with the flour milling company setting a price range of SAR 44-48 per share for the sale, it said in a regulatory filing (pdf).

Demand for the IPO was strong: The order book was fully covered only hours after the start of the process, Bloomberg reports. Modern Mills, previously known as Milling Company 3, received earlier this month approval from the Capital Market Authority (CMA) for the offering, which is open to both institutional and individual investors.

The timeline for the transaction:

Bookbuilding for institutional investors to run until Wednesday, 21 February;
Final price announced on Tuesday, 27 February;
Subscription period for individual investors from Tuesday, 5 March to Wednesday, 6 March.

MMC is looking to raise SAR 1.08 bn to SAR 1.178 bn from the offering, which will see it sell 30% of the company. The price range will see it have a market cap on the first day of trading in the SAR 3.6-3.9 bn range

This is a secondary sale: Selling shareholders will own a combined 69% of Modern Mills after the transaction. They include Mada International Holding (50% share pre-offering), Al Ghurair Foods Company (45% share pre-offering), and Masafi Company (5% share pre-offering).

MMC is one of two companies with an IPO in the market right now. Drugmaker Avalon Pharma priced its IPO at the top range as it looks to raise SAR 492 mn for a 30% stake.

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

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

More to come? The Fourth Milling Company (MC4) has recently tapped Riyadh Capital as its financial advisor for an IPO in Tadawul, Bloomberg reported in January, with sources saying that the offering could happen in the first half of this year.

UNWTO data shows Saudi tourism industry continues to grow

Saudi was among the world’s best-performing destinations for tourist arrivals in 2023in comparison with 2019, welcoming 56% more international visitors, according to the World Tourism Barometer report (pdf) by the United Nations World Tourism Organisation (UNWTO) for January. The report zeroes in on 2019 as the pre-pandemic high water mark.

On the list of “best-performing large destinations,” Saudi ranks #1 when you measure by volume (or the growth in number of arrivals).

The challenge now: To get those tourists to spend more. The Kingdom doesn’t make the list of best-performing destinations by growth in receipts, where Turkey (+59%), Portugal (+38%), and Morocco (+34%) come out on top.

We’re also the #3 market in terms of recovery of outbound spending (ie: nationals and folks living in Saudi, but traveling abroad), up 52% from before covid-19. Ukraine, Romania, the United Kingdom, and Norway rounded out the top five.

The global industry is yet to recover from covid-19, the data shows. Total receipts in the global industry were down 12% in 2023 compared to 2019, while total arrivals were down 7%. Still: That’s progress. The industry down 25% from 2019 in total receipts in 2022.

And industry insiders think it’s going to get better: 63% of respondents in the Middle East to a UNWTO poll of experts think 2025 is going to be “better” or “much better.”

What’s weighing on the recovery? According to respondents to the poll:

The economic environment: 69%
Higher transport and accommodation costs: 55%
Extreme weather events: 28%
The war in Gaza: 24%

BACKGROUND- The Tourism Ministry recently more than doubled its tourism target for 2030, hoping now to be host to 150 mn tourist trips after it hit last year an earlier target of 100 mn ahead of plan. The new 2030 target sees 80 mn by domestic travelers and 70 mn by international travelers.

KSA and UAE lead sovereign sustainability-linked bond issuance in the Middle East

The Kingdom and UAE are on track to remain the largest issuers of sovereign green bonds in the region in 2024, according to a recent S&P Global report (pdf). This will be driven by both government bodies and state-owned companies looking to meet net-zero targets, the report said.

Green, social, sustainability, and sustainability-linked bond (GSSSB) issuance in the Middle East reached a record USD 23 bn in 2023, doubling since 2022. This represents less than 3% of global issuance.

Sustainable sukuk issuances are expected to grow amid increasedinvestor demand and efforts by countries in the Muslim world to reduce their carbon footprints, S&P said.

Most bond proceeds go towards renewable energy and hydrogen projects in the region, the report said. Investments in projects addressing water scarcity and heat waves are also anticipated to continue to drive issuance this year, the report added, cautioning that the extent of progress largely hinges on the pace of decarbonization strategies.

The global stocktake: On a global scale, sovereign issuance is poised for another uptick in 2024, with S&P Global forecasting issuances to reach between USD 950 bn and USD 1.1 tn, propelled by robust national sustainability commitments and external backing. Issuances came in at USD 980 bn in 2023, with notable contributors like the UK, Germany, and Italy each surpassing USD 10 bn in issuances.

Out of all GSSSB issuances, green bonds will continue to reign supreme amid growing demand for environmental projects.

Tax incentives for companies relocating HQs here come into force

Significant tax breaks for companies relocating their regional HQs have come into force:The Kingdom has unrolled tax incentives for foreign companies relocating their regional headquarters here, new tax rules published by the official gazette, Umm Al Qura, showed last week.

Ironing out the details: The incentives include a 30-year exemption from corporate income tax on each company’s approved activities in the Kingdom. License holders will also be able to make payments to entities outside Saudi without paying withholding tax. The 30-year no-tax window for the activities of the regional entity incorporated in KSA will open from the day the company’s business license is issued until the lapse of the period or if the business ceases to be a regional HQ for any reason. The incentives are subject to renewal, the rules showed.

And requirements: Foreign companies relocating their regional HQs here need to meet a set of requirements that includes:

A valid license from the Investment Ministry. Business activities in the Kingdom need to fall within the scope of the license;
Have an office here;
The office needs to be staffed and managed here and BoD meetings must take place in KSA;
Incurring operational expenses related to the regional office;
Must generate revenue;
Must have at least one resident director in the Kingdom.

Fail to comply? You’ll have a 90-day window to set things right and pay a SAR 100k fine. Mess up again within three years or fail to fix things, you’ll face a fine of SAR 400k and could be on the road to losing your tax-exempt status.

Remember: The Kingdom had set a 1 January 2024 deadline for foreign firms to move their regional HQs here or run the risk of losing out on government contracts. The plan, a cornerstone of Crown Prince and Prime Minister Mohamed bn Salman’s drive to build a diversified, globally significant non-oil economy, has been in the works since February 2021.

New rules for the real estate contributions law

The Real Estate General Authority (REGA) is out with executive regulations for the newreal estate contributions (REC) law, which went into effect in July 2023. The rules regulate how groups of five or more people can come together to develop a real estate project.

A license to develop a project through contribution is based on the size of the project, requires a clear financial plan, and will need to have a qualified manager.

Uh, Enterprise? What’s a real estate contribution? It’s a financial strategy where individuals pool their resources to collectively invest in a property. Some might contribute cash, others could contribute in-kind assets (think: land) or services. Under the rules for the REC, any in-kind contribution needs to be valued by independent appraisers, while cash contributions will have to be deposited in an escrow account.

They come in three sizes: A small contribution is worth less than SAR 50 mn, while a medium-sized one is in the SAR 50-300 mn range, and a large project is defined as being worth more than SAR 300 mn, according to the rules.

The regulations, in brief:

A REC has to have a minimum number of 5 contributors;
RECs can have partial stakes and / or full ownership of properties;
The licensee can contribute property instead of funds, only if the property will be made headquarters for the REC. After transferring the property to the REC, the licensee’s stake in the REC will be in the form of ownership in the property they contributed, and after the first year they can choose to convert 50% of that into shares in the REC with all its managed properties;
Only one REC can have the license of a certain property in a given period;
Contributors must hold a stake of at least 5% in the REC;
The Authority has ten days to review the license application and may ask for additional information.

Saudi inflation edged up to 1.6% in January thanks to rising rent prices

Inflation slightly up in first month of the year:Inflation inched up to 1.6% in January 2024, slightly up from the 1.5% rate the previous month, according to the latest General Authority for Statistics (GASTAT) figures (pdf). The slight uptick in inflation last month ended a seven-month downward trend seen in most of 2023.

Once again, rent is the culprit: Housing rents were up 9.3% in January, reflecting an 8.2% rise in the price of villas, according to the report, while prices of housing, water, electricity, gas and other fuels spiked by 7.8%. Food and beverages prices were up by 1% on the back of a 3.7% increase in vegetables prices, while restaurant and hotel prices were up 2.4% due to a 2.1% increase in catering services prices.

Furniture, clothes and transportation are cheaper: Clothing and footwear prices declined by 4.1% y-o-y in January — the sharpest decline amongst all items as garment prices plunged by 6.3%. This was followed by 3.3% decline in the price of furnishing and household equipment, and a 1.1% drop in transport prices.

On a monthly basis, inflation was basically flat: Consumer prices marginally rose 0.3% m-o-m in January, reflecting the 1.1% m-o-m bump in housing, water, electricity and gas prices compounded by a 0.3% m-o-m uptick in the price of food and beverages.

The outlook: Inflation is forecasted to continue cooling down to 1% y-o-y by mid-2024, according to a report by Capital Economics in January. While it’s possible we could see it tick up again in 2H 2024, it will cool again by the start of 2025, the report read.

PRODUCER PRICES-

Producer prices rose 4.3% y-o-y in January driven by a 34% surge in basic chemicals and a 12% increase in refined petroleum products, according to the latest Gastat figures (pdf).

Mithaq Capital is the new majority owner of US retailer Children’s Place. PLUS: Tamimi markets acquires 100% of Al Raya

Mithaq Capital has accumulated a majority stake in ailing US-based kids’ apparel retailer Children’s Place,triggering a provision for refinancing a USD 50 mn debt facility. AlRajhi family's investment arm now holds a 54% stake in the retailer after buying shares last week on the open market, snapping up shares at USD 17.10 a piece, Reuters reports

Gordon Brother Group could provide a part of the refinancing facility: The retailer has inked a non-binding agreement with the liquidation and restructuring firm for a term debt facility worth USD 130 mn that would cover some of the required refinancing, it said in a press release. The loan’s term sheet is expected to be finalized next month.

In context: The share price of the Nasdaq-listed company fell 58% last week to trade at USD 11.30 a piece after un-audited figures showed operational losses in 4Q 2023. Shares pared their losses following Mithaq Capital’s announcement.

IN OTHER M&A NEWS-

PIF-backed Tamimi Markets completes Al Raya takeover, acquiring 100% of the supermarket chain, it said in a press release. Al Raya was majority owned by Levant Capital and it currently operates 51 stores across 20 cities. Information about the size of the transaction wasn’t made public.

ADVISORS-ANB Capital quarterbacked the transaction as Tamimi’s sole financial advisor, andMohanned bin Saud Al-Rasheed in Association with Baker Botts acted as its legal counsel. BNP Paribas acted as sole financial advisor to Al Raya and Eversheds Sutherland acted as legal advisor.

Acwa Power gears up to draw USD 2.3 bn loan for solar projects

Renewable energy giant Acwa Power has met the conditions required to draw a USD 2.3 bn loan to finance three solar projects in Saudi Arabia, it said in a disclosure to Tadawul last week. Lenders include our friends at HSBC as well as Banque Saudi Fransi, Mizuho Bank, Riyad Bank, SNB, Standard Chartered, and SAB. The solar plants were originally expected to reach a financial close in 3Q 2023.

What we know: Acwa Power signed power purchase agreements with the Saudi Power Procurement Company to develop and operate three solar energy projects with a 4.5 GW capacity last May. Acwa and Badeel, which is backed by the Public Investment Fund (PIF), will jointly own the projects, with Acwa holding a 50.1% stake and Badeel 49.9%.

About the projects: Worth a combined USD 3.4 bn, the projects will include the 2 GW Ar Rass 2 solar farm, the 1.12 GW Saad 2 PV plant, and the 1.42 Al Kahfah solar project and will generate enough electricity to power the equivalent of 750k households in the Kingdom once operational.

Acwa has more in the works: The company is also currently developing Saudi’s USD 2.2 bn Al Shuaibah 1 and Al Shuaibah 2 PV projects with capacities of 900 MW and 2.06 GW respectively. Acwa and Badeel are also developing the Shuaibah 3 seawater reverse osmosis desalination project.

Americana, Solutions by STC report results for 2023

We’re coasting to the end of earning season, friends, fear not:

#1- F&B giant Americana’s net income rose 0.1% y-o-y in 2023 to c. USD 259.5 mn (c. SAR 973 mn), its earnings release (pdf) showed. Revenues were up c. 1.5% y-o-y in the same period to USD 2.4 bn (c. SAR 9 bn) on the back of a “record gross 300 new store openings'' last year.

Egypt’s FX crunch + geopolitical tensions impact results: Americana said it “demonstrated resilient performance despite USD 106 mn impact of unfavorable FX movements, especially in Egypt, and impact on business during the fourth quarter due to recent regional geopolitical tensions”.

Americana’s BoD has proposed a dividend of SAR 0.0154 per share for eligible shareholders for 2023, it said in a disclosure to Tadawul. They have also proposed a one-time special dividend of SAR 0.0059 per share, it showed. A distribution date will be announced at a later date, it added.

#2- Solutions by STC’s net income rose 13.2% y-o-y to SAR 1.2 bn in 2023, it said in a disclosure to Tadawul last week. Its revenues were up 25.4% y-o-y in the same period to SAR 11 bn. The tech company is 79% owned by telecom giant stc.

Revenues grew last year on the back of a 25.6% increase in its core ICT services, 40% increase in IT managed and operational services, and a 4.7% increase in its digital services.

The tech subsidiary has proposed a dividend of SAR 6 per share for eligible shareholders for 2023, it said in a disclosure to Tadawul. A distribution date will be announced at a later date, it added.

Vamos Rafa again and again

It was slow for the Kingdom in the foreign press over the weekend, with Rafael Nadal hitting back at critics after he was appointed ambassador for the Saudi Tennis Federation getting ink from Reuters. “They pay me, yes, do I need the money? Not at all, it will not change my life. I have not signed a super contract, like other fellow athletes who are there, and I totally respect them,” he said. “My commitment is to promote tennis and try to achieve my goals. I don’t think Arabia needs me to wash its image. It is not my objective. People tend to give their opinions without asking questions,” he said.

Mawani completes SAR 1 bn Jeddah Islamic port renovations + Cenomi opens U Walk Jeddah

LOGISTICS-

Saudi Ports Authority Mawani has wrapped up the expansion of the the northern part of Jeddah Islamic port, doubling up the size of its Red Sea Gateway Terminal to 15 mn sqm and boosting its capacity to 6.2 mn TEU containers, up from 2.5 mn, it said in a press release last week. The Terminal will now accommodate large vessels with a draft of up to 17 meters. The update work in partnership with Red Sea Gateway Terminal (RSGT cost SAR 1 bn and was executed under a build, operate, and transfer contract.

RETAIL-

Our friends at Cenomi Centers marked the grand opening of U Walk Jeddah shopping mall on Thursday. The lifestyle destination features indoor and outdoor experiences, including shopping, food, and entertainment. It also features global retail brands, an open-air walkway and an indoor boulevard. The soft opening took place in December 2023.

PETROCHEMICALS-

Advanced Petrochemical Co. has signed engineering, procurement and engineering contracts worth USD 191.3 mn to set up an isopropanol facility in Jubail Industrial City, Argaam reported yesterday, citing an emailed statement from the company. The plant, which will have an annual production capacity of 70k tons, will utilize manufacturing technologies sourced from German conglomerate Thyssenkrupp. Commercial operations are slated to start in the fourth quarter of 2026.

EDUCATION-

Ladun subsidiary Built Industrial is slated to build a school in Turtle Bay Village under a SAR 131 mn agreement with PIF subsidiary Red Sea Development, the real estate player said in a disclosure to Tadawul last week. The contract will be valid for 18 months and will see the contractor build a kindergarten, a primary school, a nursery, as well as arts and sports facilities.

STARTUP WATCH-

Fifteen local, regional and global startups have graduated from the Generative AI Accelerator program (Gaia) program’s second cohort, state news agency SPA reported last week. The program, launched in August last year, is backed by the Saudi Data and Artificial Intelligence Authority and the National Program for Information Technology Development.

MANUFACTURING-

#1- Home appliances manufacturer Al Hassan Ghazi Ibrahim Shaker will explore with LG Electronics and the Investment Ministry the economic viability of localizing the AC compressor industry, the company said in a press release (pdf). No further information was provided. The two companies established a factory to manufacture AC units in Riyadh in 2008. The Investment Ministry said the move, if it goes ahead, could pave the way for the local manufacturing of other appliances.

#2- Saudi Vitrified Clay Pipes (SVCP) has inked a MoU with Qatar’s Laffan Pipes Factory to set up a joint venture that would produce and sell high-density pipe products, rubber and plastic products, and plastic sewer covers, it said in a statement to Tadawul. SVCP will hold a 55% stake, and Laffan Pipes hold 45%. No further information was disclosed.

ELECTRIC VEHICLES-

PIF-backed Lucid plans to offer a charging allowance of SAR 3.75k to customers here to encourage them to purchase its Lucid home charger from its certified vendor in the local market, it told Al Eqtisadiah last week. The move comes under its efforts to drive up sales and growth.

ENERGY-

Bena Steel Industries has extended a non-binding MoU that could see it acquire a 40% stake in British energy solutions provider Alderley, it said in a disclosure to Tadawul last week. No further details were provided on the MoU, which was first signed in June. Bena Steel also extended a separate agreement with Alderley on clean energy, it said.

AVIATION-

#1- Jeddah’s King Abdulaziz International Airport rolled out the red carpet for the first-ever direct flight from Turkmenistan’s Ashgabat, Saudi Gazette reported last week. The new route runs three days a week.

#2- AlUla welcomed the first direct flight by Royal Jordanian from Amman, state news agency SPA reports. Royal Jordanian will operate two flights weekly between Amman and AlUla.

CULTURE-

The Culture Ministry inked a five-year executive program with the British Science Museum Group, state news agency SPA reports. The program aims to bolster cultural cooperation and exchange and knowledge transfer and training on museums. The British museum group comprises London’s Science Museum, York’s National Railway Museum, Shildon’s Locomotion, Bradford’s National Science and Media Museum and Manchester’s Science and Industry Museum, according to its website.

Advanced Petrochemical Co. Al Hassan Ghazi Ibrahim Shaker ALSO ON OUR RADAR AlUla AVIATION Bena Steel Cenomi Centers Education ENERGY EVs Ladun LG Electronics logistics Lucid manufacturing petrochemicals Red Sea Development Retail Saudi Ports Authority (Mawani) Saudi Vitrified Clay Pipes STARTUP WATCH

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PLANET FINANCE

AI stock rally accounts for 96% of net worth gained on Bloomberg’s Billionaire Index in 2024

AI is making the rich richer: A rally in AI-related stocks has boosted the net worth of 30 of the world’s 500 wealthiest individuals on Bloomberg’s Billionaires Index by a combined USD 124 bn this year so far, Bloomberg reports.

By the numbers: The increased net worth of these 30 billionaires on the back of AI-related stocks accounts for 96% of the total wealth gained on the index of the world’s 500 richest people.

But, the gains may not be sustainable: The sheer magnitude of the stocks’ rally has raised questions over the market’s gains, with Bank of America strategist Michael Hartnett drawing parallels to the dot-com bubble of the late 1990s.

ALSO WORTH NOTING-

Wall Street appears to be all in on the shale industry, a sector that it had previously overlooked, reports Bloomberg. Oil companies are increasingly joining forces — including a USD 26 bn merger last week — to meet Wall Street’s demand for scale, efficiency and cash returns, ushering in a new era for the shale industry.

TASI	12,484.59	+0.4% (YTD: +4.3%)
MSCI Tadawul 30	1,609.82	+0.4% (YTD: +3.8%)
USD : SAR (SAMA)	3.75 Sell	3.75 Buy
Interest rates	6% repo	5.5% reverse repo
EGX30	28,926.15	+0.2% (YTD: +16.2%)
ADX	9,427.01	+0.2% (YTD: -1.6%)
DFM	4,258.78	+0.5% (YTD: +4.9%)
S&P 500	5,005.57	-0.5% (YTD: +4.9%)
FTSE 100	7,711.71	+1.5% (YTD: -0.3%)
Euro Stoxx 50	4,765.65	+0.5% (YTD: +5.4%)
Brent crude	83.47	+0.7%
Natural gas (Nymex)	1.61	+1.8%
Gold	2,024.10	+0.5%
BTC	51,653.67	-0.8% (YTD: +112.7%)

THE CLOSING BELL-

The TASI rose 0.4% yesterday on turnover of SAR 10.3 bn. The index is up 4.3% YTD.

In the green: Sidc (+10%), Americana (+9.8%) and Ayyan (+9.7%).

In the red: Chubb (-5.2%), Takween (-4.4%) and Lumi (-2.7%).

CORPORATE ACTIONs-

Tadawul-listed pipe manufacturer Amiantit is going ahead with a rights issue in a bid to raise the capital it needs to settle debt owed to Saudi National Bank. Amiantit separately said that Alinma Bank has forgiven debt Amiantit owes the lender in return for 100% of the manufacturer’s stake in subsidiary International Infrastructure Management and Operation. Shareholders will be asked to vote on the rights issue at an extraordinary general meeting on Tuesday, 20 February.

Wasatah Capital will distribute a dividend of SAR 0.40 to unitholders of Alwaha REIT fund for the second half of the year, it said in a disclosure to Tadawul. The payment date will be within 15 working days from a record date of Tuesday, 20 February.

City Cement will distribute a dividend of SAR 0.40 to eligible shareholders for the second half of 2023, it said in a disclosure to Tadawul. The payment date was set for Monday, 4 March.

Post-war talk dominates at Munich Security Conference

We’re already talking post-Gaza war: Foreign Minister Prince Faisal bin Farhan took part in a meeting in Munich aimed at outlining a post-Gaza plan with regional and European counterparts. “Now the priority must be ending the current humanitarian catastrophe that is happening in Gaza…we’re focused on a ceasefire, we’re focused on an Israeli withdrawal from Gaza and humanitarian access…,” he said in remarks during the Munich Security Conference yesterday (watch, runtime: 0:57).

Discussions also touched upon the Kingdom’s normalization with Israel: A senior US official told Reuters that the meeting aimed to exchange views on a post-war Gaza, Saudi-Israel normalization and other topics paving the way to a Palestinian state.

Palestinian statehood is the only way to go: “We are firmly convinced that the only pathway towards security and stability for everyone in the region, including Israel, is through a Palestinian state,” bin Farhan said.

A busy schedule for the FM: His agenda included meetings with British counterpart David Cameron, Canadian counterpart Mélanie Joly, and Nato Secretary General Jens Stoltenberg. He also met with EU Foreign Policy Chief Josep Borrell among other meetings.

KSA, TURKEY SIGN AGREEMENTS-

Saudi and Turkey signed more than two dozen agreements during the Saudi-Turkish Business Forum in Istanbul on Friday, Turkish state-owned Anadolu Agency reported. No further details were provided, but the news agency said most of the agreements were business agreements.

But we know at least one: The Saudi Fund for Development CEO Sultan Al Marshad signed a USD 55 mn soft loan with Turkish Deputy Treasury and Finance Minister Osman Celik to fund a project aimed at mitigating earthquake risks in several public schools in Turkey, state news agency SPA reported.

CALENDAR

FEBRUARY

21 February (Wednesday): Restatex Riyadh Real Estate wraps up, Riyadh International Convention and Exhibition Center, Riyadh.

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

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

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

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

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

22 February (Thursday): Founding Day (Public Holiday)

26 February (Monday): OTSEC Summit, Dammam.

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

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

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

MARCH

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

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

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

8 March (Friday): Egyptian Cup final between Al Ahly and Al Zamalek, Riyadh

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

Wrapping up 23 March (Saturday): Desert X ALUla.

Signposted to happen sometime in March:

Ramadan

APRIL

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

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

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

Signposted to happen sometime in April:

Eid Al-Fitr (national holiday)

MAY

1-11 May (Wednesday-Saturday): Grand Smash 2024 Table Tennis Championship at King Abdullah Sport City, Jeddah.

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

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

Signposted to happen sometime in May:

Global Trade Review (GTR): KSA
Saudi Energy Convention

JUNE

5 June (Wednesday): World Environment Day.

30 June (Sunday): ZATCA tax exemption scheme expires

Signposted to happen sometime in June:

Eid Al-Adha (national holiday)

AUGUST

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

SEPTEMBER

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

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

DECEMBER

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

Signposted to happen sometime in 2024:

The AFC Champions League Elite

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