{"id":90141,"date":"2024-10-02T00:00:00","date_gmt":"2024-10-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/10\/02\/cma-approves-two-tadawul-ipos-two-nomu-debuts\/"},"modified":"2024-10-02T00:00:00","modified_gmt":"2024-10-02T00:00:00","slug":"cma-approves-two-tadawul-ipos-two-nomu-debuts","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/10\/02\/cma-approves-two-tadawul-ipos-two-nomu-debuts\/","title":{"rendered":"CMA approves two Tadawul IPOs + two Nomu debuts"},"content":{"rendered":"

Good morning, friends<\/strong>, and welcome to a busy and macro-heavy news day. Leading our news well this morning is the government\u2019s pre-budget statement for 2025, which sees the budget deficit narrowing next year while GDP growth is expected to rebound. <\/p>\n

HAPPENING TODAY-<\/p>\n

<\/a> #1- Opec+\u2019s joint ministerial monitoring committee is expected to leave its oil output policy<\/strong> unchanged when it meets at 3pm KSA today<\/strong>, Reuters<\/a> reports, citing five unnamed sources from the group. The expectation that the group is likely to stick to its current output policy, which includes plans to phase out the voluntary production cuts starting December, comes despite oil prices falling below USD 70 \/ bbl for the first time in three years. <\/p>\n

#2- <\/strong>The Sirha Arabia Food Trade Exhibition<\/a><\/strong> is on its second day today<\/strong> and will wrap tomorrow at Riyadh Front Expo. The event will showcase 300 exhibitors from the food products and equipment, bakery, pastry, and coffee industries. Sirha Arabia will also be hosting selection contests for the Bocuse d'Or and the Pastry World Cup, which start in 2025.<\/p>\n

#3- <\/strong>Intersec Saudi Arabia<\/a><\/strong> is also on its second and penultimate day<\/strong>, with experts in the security, safety and fire protection industries convening to address the role of AI and VR in the sector. <\/p>\n

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WEATHER- <\/strong>Sun\u2019s out:<\/strong> Riyadh is looking at a daytime high of 41\u00b0C and a nighttime low of 28\u00b0C today. Over in Makkah, the temperature will peak at 42\u00b0C before dropping to 27\u00b0C. Meanwhile, Jeddah \u2014 the coolest of three \u2014 will see a high of 36\u00b0C and a low of 28\u00b0C.<\/p>\n

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PSA- <\/p>\n

Property owners <\/strong>in six Medina neighborhoods will have until tomorrow to register their <\/strong>units<\/strong>, the Real Estate General Authority said in a statement<\/a>. The areas include parts of King Fahd, Al Aqoul, Jama Umm Khalid, Sikkat Al Hadid, Al Khadra, and Abyar Al Mashi. Property owners must register through the real estate registry platform<\/a> before the deadline to avoid fines.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- CMA gives the all-clear for two Tadawul IPOs:<\/strong> Saudi healthcare provider Almoosa Health<\/a> has lined up approval from the Capital Market Authority (CMA) to proceed with an IPO that will see the firm offer 13.3 mn shares representing a 30% stake, according to a CMA statement<\/a>. A prospectus for the offering is yet to be published. The regulator also gave Arabian Company Agriculture and Industrial Investments<\/a> (Entaj) the green light to offer a 30% stake (9 mn share) in an IPO, according to another statement<\/a>. <\/p>\n

\u2026and two Nomu debuts:<\/strong> The capital market regulator approved Hedab Alkhaleej Trading\u2019s offering of a 10.7% stake (800k shares) on parallel market Nomu, according to a statement<\/a>. The CMA also approved a request by Lamasat<\/a> to offer a 7.4% stake (6 mn shares) on Nomu, it said in a separate statement<\/a>. <\/p>\n

REMEMBER-<\/strong> The regulator\u2019s approval for an IPO offering is valid for six months, with additional information to be provided pending the publication of each offering\u2019s prospectus.<\/p>\n

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<\/a> #3- Carbon trading market to launch next month: <\/strong>Saudi is planning to launch a voluntary carbon market exchange in November, CEO of PIF\u2019s Regional Voluntary Carbon Market Company (RVCMC) Riham ElGizy told Asharq Business<\/a> on the sidelines of the Portfolio Egypt conference earlier this week. The launch will feature the company\u2019s largest auction to date, with carbon credits ranging between USD 2.5-3 mn tons. <\/p>\n

Who will participate?<\/strong> Regional and Saudi companies, including Aramco and Sabic, will participate in the auction, said ElGizy.<\/p>\n

REMEMBER- RVCMC has long been preparing for the Saudi carbon market:<\/strong> RVCMC hired<\/a> global ESG commodities exchange platform Xpansiv in April to provide a tech base for the carbon credit exchange. The company also signed two MoUs<\/a> with Kenya\u2019s main dry cell battery maker Eveready East Africa and Carbon Vista Nigeria to set up high-quality and impactful carbon projects in the two countries last year. <\/p>\n

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#3- <\/strong>InterContinental Hotel<\/strong> Group (IHG) plans to expand its Saudi team by adding 6k new <\/strong>employees <\/strong>as part of its regional expansion strategy, the group\u2019s Regional Managing Director Haitham Mattar was quoted as saying by Gulf News<\/a>. The group currently employs 30k people across the Middle East, Africa, and India.<\/p>\n

The group expects to have 22 new hotels open by the end of this year<\/strong>, bringing IHG\u2019s hotel portfolio in the region to around 220. Meanwhile next year, the group plans to open 19 new hotels, with 2026 expected to \u201cbe the biggest in terms of new hotel openings,\u201d Mattar said. <\/p>\n

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<\/a> #4- Azerbaijan is looking to establish a joint sovereign investment fund with Saudi Arabia<\/strong> to boost investment in priority sectors in both countries, Azerbaijani Economy Minister Mikail Jabbarov told Federation of Saudi Chambers (FSC) Chairman Hassan bin Moajab Al Huwaizi, state news agency SPA<\/a> reports. Jabbarov discussed the idea with Al Huwaizi during his visit to Azerbaijan<\/a> at the head of an FSC trade mission. <\/p>\n

The potential investment areas:<\/strong> Officials discussed channeling Saudi investments towards Azerbaijan\u2019s energy, renewables, manufacturing, tourism, infrastructure, livestock, agriculture, and mining sectors, while also facilitating Azerbaijani companies' involvement in infrastructure projects in Saudi Arabia and exports of foodstuffs to the Kingdom. Incentives for Saudi investors at Azerbaijan's freezones were also on the agenda.<\/p>\n

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DATA POINTS-<\/p>\n

<\/a> #1- The Tadawul All Share Index (TASI) rose 2.4% week-on-week<\/strong>, with turnover of SAR 27.4 bn by the end of last week, according to a weekly report<\/a> from the exchange. <\/p>\n

Al Rajhi was the most traded in terms of value at SAR 1.162 bn despite falling 0.3% WTD<\/strong>, followed closely by Red Sea International (SAR 1.16 bn in trades), which saw its shares increase 19.9%. Saudi Fisheries edged out Aramco for third spot at SAR 1.1 bn, with its shares rising 21.9% \u2014 the largest increase seen during the week. <\/p>\n

Deep dive: <\/strong>Saudi individual investors traded on turnover of 32.7 bn, while turnover for Saudi institutional investors came in at SAR 6.3 bn. Meanwhile, qualified foreign investors traded on turnover of 13.2 bn , and GCC institutional investors traded on turnover of 799.8 mn, according to Tadawul\u2019s weekly stock market ownership and trading activity report (pdf)<\/a>. <\/p>\n

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#2- <\/strong>The <\/strong>Saudi Central Bank\u2019s (Sama)<\/strong> net foreign assets rose <\/strong>9.6%<\/strong> y-o-y in August to SAR<\/strong> 1.67 tn<\/strong>, according to Sama\u2019s monthly bulletin (pdf)<\/a>. Meanwhile, net foreign assets at commercial banks fell to negative SAR 19.70 bn from SAR 66.63 bn.<\/p>\n

#3- Consumer spending in Saudi Arabia rose 5% y-o-y to SAR 120.9 bn in August 2024<\/strong>, Argaam<\/a> reports.<\/p>\n

#3- Ejar logs over 10 mn rental contracts since launch:<\/strong> Ejar, a rental platform developed by the General Authority for Real Estate, has registered over 10 mn rental contracts across the Kingdom since its launch in 2018<\/a>, with a daily rate of 19k contracts, the authority said in a statement<\/a>. Residential contracts accounted for 82.3%, or 8.3 mn, of the total contracts, while commercial contracts made up the remaining 17.6%, or 1.7 mn.<\/p>\n

The platform registered over 1.5 mn contracts in the year-to-date<\/strong>, 1.2 mn of which were residential rental contracts.<\/p>\n

#5- Marine fisheries recorded a total catch of 74.7k tons in 2023, up 16.2% y-o-y<\/strong>, while aquaculture production reached 139.9k tons, a 56.3% increase since 2021, according to the Marine Fishery and Aquaculture report (pdf)<\/a>. <\/p>\n

Saltwater farms produced 92.5k tons of fish, while inland water farms produced 47.5k<\/strong> tons.<\/strong> Geographically, the Arabian Gulf accounted for 47k tons of the marine fishing total, and the Red Sea contributed 27.7k of the marine catch. Shrimp production led with over 66.5k tons, followed by Nile tilapia (45.2k tons), and sea bass (13.1k tons).<\/p>\n

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OIL WATCH-<\/p>\n

The oil market is stable, and we have <\/strong>OPEC+<\/strong> policy to thank for it: <\/strong>Despite growing regional tensions and macro headwinds, the global oil market has remained stable, \u201cwith fluctuations within expected bounds,\u201d due to OPEC's decision to pump below full capacity, Russian Deputy Prime Minister Alexander Novak tells Alarabiya in an interview (watch: runtime: 22:30<\/a>).<\/p>\n

In his words: <\/strong>\u201cWe don\u2019t see extreme volatility. The market is generally stable now,\u201d Novak said, adding that any market change would still align with the group\u2019s policy. \u201cThis agreement allows us to manage the volatility.\u201d<\/p>\n

Long-term demand is in the cards, with no peak in sight: <\/strong>Novak sees global demand for oil on the up through to 2050. \u201cWe expect oil demand to increase by 20 mn bbl \/ d over the next 25 years,\" he stated, adding that the boom will be driven by increased energy consumption from emerging technologies and the ongoing global push for electrification.<\/p>\n

IN CONTEXT- <\/strong>OPEC\u2019s crude production took a major hit in September, dropping by 480 bbl \/ d to 26.62 mn bbl, as political turmoil in Libya cut the member country\u2019s output by 38%, according to a Bloomberg survey<\/a>. Libya's disruptions provided unintended support for the broader bloc, which has been working to limit production to prop up oil prices. The cartel is due to convene today to decide on its oil strategy moving forward.<\/p>\n

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SPORTS-<\/p>\n

#1- Brazilian forward Neymar has returned to full training after nearly a year of recovery from<\/strong> injuries<\/strong> which he sustained in October 2023, just two months after his joining Al Hilal, according to the Saudi Gazette<\/a>. While Neymar resumed individual training in July, he has not yet been registered for the local league but is included in the AFC Champions League squad.<\/p>\n

#2- Cristiano<\/strong> Ronaldo and Sadio Mane scored two goals for Al Nassr in the AFC Champions <\/strong>League <\/strong>Elite group stage<\/strong>, defeating Qatar\u2019s Al Rayyan 2-1 victory and taking his club to 4th place in the group standings with 11 points, AP<\/a> reports.<\/p>\n

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THE BIG STORY ABROAD- <\/p>\n

Iran fired some 200 missiles at Israel last night in a massive escalation of regional <\/strong>violence<\/strong>, with the Israeli army saying it has intercepted most missiles and reporting one dead in the West Bank. Israeli Prime Minister Benjamin Netanyahu said the attack was a \u201cbig mistake\u201d and vowed retaliation during the opening meeting of his security cabinet yesterday, with the US promising to support Israel in its retaliation, Bloomberg<\/a> reports. <\/p>\n

Iranian Foreign Minister Sayed Abbas Araqchi said Iran\u2019s attacks were \u201cfinished,\u201d <\/strong>unless Israel retaliates, in which case their response will be \u201cstronger and more powerful\u201d on X<\/a> a few hours ago.<\/p>\n

Market reax: Oil prices surged 5% following the attacks, with Brent settling at USD 73.56 per barrel, and several indices on Wall Street and in the region ending lower. <\/p>\n

The Iranian attack is getting plenty of play:<\/strong> Reuters<\/a> | AP<\/a> | CNN<\/a> | BBC<\/a>. <\/p>\n

US elections are also back on front pages as the country gears up for the first and only vice presidential debate <\/strong>between Kamala Harris\u2019 VP Tim Walz and Donald Trump\u2019s pick, JD Vance, later today. <\/p>\n

IN OTHER US NEWS- East Coast and Gulf Coast dockworkers\u2019 kicked off their biggest strike in 50 years <\/strong>after negotiations for a new labor contract broke down, halting nearly half of the country\u2019s shipping and potentially costing bns of USD in damages. (CNBC<\/a> | Reuters<\/a>)<\/p>\n

Also causing plenty of damage: <\/strong>Hurricane Helene, which has killed at least 130 people across six states, with analysts estimating more than USD 30 bn in damages so far. (Semafor<\/a>)<\/p>\n

AND IN TECH NEWS- <\/strong><\/p>\n