Talabat’s IPO orderbook fully covered within minutes

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TODAY: Talabat’s IPO is covered + ADIA closes in on slice of Malaysia Airports.

Good morning, friends. We have the latest on Talabat’s IPO as the subscription window for institutional investors closes tomorrow, and an update on ADIA’s foray in snapping up a piece of Malaysia Airports. A bit closer to home, the Saudi Rail Exhibition is kicking off today in Riyadh and we’ll have a roundup of outcomes in our coverage tomorrow.

WATCH THIS SPACE-

#1- Saudi-UK JV to drive 100+ MW data centers development in the Kingdom: Saudi’s Dune Vaults and the UK’s Pure Data Centres partnered to form a JV to build hyperscale data centers in the Kingdom, with over 100 MW in capacities, according to a press release from Pure Data Centers.

Looking ahead: “We are dedicated to establishing over 1k MW of sustainable data center capacity in Saudi Arabia,” Faisal AlRahbiny, founder and managing director of Dune Vaults said.

IN OTHER SAUDI NEWS- PIF-backed Logistics company Zamil Offshore Services lined up plans to upgrade its fleet and launch its services in new markets following the PIF’s 40% stake acquisition in February, COO Nasser Al Hazzani told Seatrade Maritime News in an interview (watch, runtime: 6:17). “Our plans continue to focus on Saudi Arabia; however, we will also expand our service offerings in terms of the size of the vessels, the capabilities, and the markets that they serve,” Al Hazzani said. “We are also looking at regional growth into other markets,” he added.

#2- Damac Properties is ramping up its investments in digital infrastructure, with over 10 data centers currently under construction, the company’s Founder and Chairman Hussain Sajwani told CNBC Arabia (watch, runtime: 06:15). Damac is spending USD 10 mn per MW of data center capacity, Sajwani said. The Dubai-based developer owns land in Greece, Spain, Saudi Arabia, Turkey, Indonesia, and Malaysia for these developments, focusing on Asia and Europe as key regions for expansion.

REMEMBER- The conglomerate said in June that it plans to invest USD 1 bn in data centers through its digital unit Edgnex over the next couple of years in response to the global demand for digital infrastructure. Its data center unit, Edgnex, is building USD 600 mn data centers in Saudi Arabia in Dammam and Riyadh, slated to go online next year, and USD 1 bn in data centers in Thailand. The company also earmarked USD 100 mn alongside telecoms operator Vodafone Turkey to establish a new 6 MW data center in Izmir, Turkey, also set to go online next year.

#3- Bahrain to issue tender for airport city: Bahrain will issue tenders to private developers in 1Q 2025 to develop a new airport city around Bahrain International Airport, CEO Mohamed Yousif Al Binfalah told AGBI. The feasibility study for the project has been completed, with government approval for the plans expected by the end of this year. The project will include commercial and residential development.

ICYMI- Bahrain has also allotted space for a new airport, which is set to be located on reclaimed land in northwestern Bahrain. Netherlands Airport Consultants has carried out a USD 1.4 mn study to identify the site of the new airport.

#2- Turkey is planning IPOs for its state-owned energy companies, a move that aims to reinforce its institutional structures, Energy Ministry Alparslan Bayraktar said at a parliamentary commission cited by Reuters. State-owned firms include electric transmissions company TEIAS, gas grid operator BOTAS, oil and gas developer TPAO, and electricity producer EUAS. The government is not planning to privatize state energy firms, meaning it will not sell shares of these companies to any individual private entity or consortium, Bayraktar added. No timeline for the launch of the IPOs, which still require legal amendments, has been announced.

#3- Spain is looking to build a railway from Iraq’s Basra to Egypt’s Sharm El Sheikh, Spain’s International Trade and Investment Director General Elisa Varela told INA. A Spanish company is already working on a railway connecting Najaf and Karbala in Iraq, Varela said. The nation also has a company operating in China that is slated to carry out railway projects in other areas in Iraq, Varela added.

MARKET WATCH-

#1- Oil prices remained almost steady in early morning trading as markets continue to weigh concern on disrupted Russian oil supply, Reuters reports. Brent crude futures shed USD 0.05 trading at USD 73.26 a barrel by GMT 05.41, while US West Texas Intermediate crude (WTI) futures remained flat at USD 69.39 a barrel.

#2- Baltic index continues its decline: The Baltic Exchange’s dry bulk sea freight index — which tracks rates for the capesize, panamax, and supramax vessel segments — dipping about 7.3% to 1,627 points yesterday — its lowest reading since November 11. The capesize index dropped 354 points to 2,808 points, while the panamax index shed 31 points to 1,171 points. The smaller supramax index lost an additional 10 points settling at 999 points.

DATA POINTS-

#1- Iran’s non-oil exports increased 14.72% y-o-y to USD 32.52 bn in the first seven months of the Iranian calendar year (21 March to 22 October), Mehr News reports, citing the head of Iran Exports Confederation Mohammad Lahouti. The value of imported goods grew 8.8% y-o-y to USD 39.5 bn during the same period.

#2- The value of Jordan’s imported consumer goods increased by 14% y-o-y to JOD 3.94 bn in the first seven months of 2024 (January-July), Ammon News reports, citing Central Bank of Jordan data. Consumer goods accounted for 36.7% of Jordan's total imports during that period. Imports of raw material and intermediate goods decreased by 12% y-o-y to JOD 5.1 bn in the first seven months of 2024, while imports of capital goods rose by 15.1% y-o-y to JOD 1.38 bn. The country’s exports of consumer goods also increased by 51.8% y-o-y to JOD 2.51 bn during the same time period.

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CIRCLE YOUR CALENDAR-

Saudi Arabia will host the Wings ofChangeMiddle East from Monday, 2 December to Tuesday, 3 December in Riyadh. The event will bring together aviation leaders, regulators, and experts in air transport.

Morocco will host the Rail Industry Summit from Tuesday, 10 December to Wednesday, 11 December in Casablanca. The two-day summit includes pre-scheduled business meetings with potential partners, conferences, and themed workshops on new market trends and future strategies presented by OEMs on infrastructure, rolling stock, embedded equipment and railway vehicle interiors.

The UAE will host the Middle East Business Aviation Show from Tuesday, 10 December to Thursday, 11 December in Dubai. The event will showcase innovations from over 135 exhibitors and will have over 25 jets on display, with over 55 speakers offering insight on market trends

Check out our full calendar at the bottom of this email for a comprehensive listing of upcoming news events and news triggers.

Talabat IPO fully covered on day one

Talabat’s DFM IPO fully subscribed on day one: Delivery Hero’s Middle East unit Talabat saw its orderbook fully covered “minutes after the books opened” yesterday, setting it up to raise up to USD 1.5 bn from its upcoming listing on the DFM, Bloomberg reports. Retail investors have until Wednesday, 27 November, to get their orders in, with the subscription period for institutional investors wrapping the following day.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

REMEMBER- Delivery Hero plans to allocate 95% of the IPO shares to institutional investors, while 5% will be allocated to retail investors.

Who’s in? Cornerstone investors, including UAE Strategic Investment Fund, Abu Dhabi Pension Fund, and Emirates International Investment Co, committed around USD 250 mn in shares, the company said in a statement (pdf). The UAE Strategic Investment Fund contributed the largest portion, with USD 140 mn, while Abu Dhabi Pension Fund committed USD 60 mn, and Emirates International Investment Co pledged USD 50 mn.

Background: Delivery Hero will sell a 15% stake in its Middle East unit Talabat on the DFM at AED 1.5-1.6 a piece. The top end of the price range values the company at USD 10.2 bn.

The final price will be disclosed on 29 November, after which the company’s shares will start trading on 10 December, the statement reads.

A strategic play to lock in strong post-IPO performance? Setting a low price range — 40% less than that of Delivery Hero’s non-European peers, Bloomberg wrote — could reflect the company’s “eagerness to preserve the post-IPO price performance,” Bryan Garnier equity analyst Clement Genelot said, adding that Delivery Hero’s dual strategy involves securing capital to strengthen its balance sheet, while nudging the market to revise its valuation for the company as a whole.

REMEMBER- Recent IPOs in the UAE had lackluster market debuts, with Lulu Retail’s shares falling as much as 2.5% on their first day of trading before paring back losses to settle at the set share price, while Abu Dhabi-based edtech firm Alef Education saw its shares drop 18% on its first day of trading.

ADVISORS- Delivery Hero appointed Emirates NBD Capital, Morgan Stanley, and JP Morgan as joint coordinators and bookrunners, with Abu Dhabi Commercial Bank (ADCB), Barclays, EFG-Hermes UAE, First Abu Dhabi Bank (FAB), Goldman Sachs, ING, and UniCredit also acting as joint bookrunners. Emirates NBD is the lead receiving bank, while ADCB, Abu Dhabi Islamic Bank, Al Maryah Community Bank, Wio, Emirates Islamic Bank, FAB, and our friends at Mashreq are also acting as receiving banks.

ADIA closes in on slice of Malaysia Airports

The Abu Dhabi Investment Authority (ADIA) submitted a formal conditional offer last week to take over the remaining shares of Malaysia Airports as part of a consortium with Malaysian sovereign wealth fund Khazanah Nasional Berhad, Malaysian pension fund Employees Provident Fund, and Global Infrastructure Partners, The Edge Malaysia reports. An offer notice was submitted to Malaysia Airports by AmInvestment Bank, which is acting on behalf of the consortium on Friday.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

The breakdown: The offer on the table includes paying MYR 11 (USD 2.4) per share, representing a 6% premium over the previous traded price on Friday, and valuing it at USD 4.1 bn. Upon the transaction’s completion, the two Malaysian investors will collectively own 70% of MAHB, with Adia and GIP holding the remaining 30%.

The offer is conditional, meaning the bidders need to acquire at least 90% of the company’s shares — including its current 41.1% stake — to go through.

Regulatory authorities gave the bid its green light: This decision was made after receiving regulatory approval from the Malaysian Aviation Commission and fulfilling the pre-conditions set by foreign and domestic authorities.

Analysts think shareholders will agree: “We believe the risks skew towards acceptance,” NST reports, citing a report by Macquarie Capital Securities (Malaysia), which says the government’s plans to pursue privatization will drive it to accept.

The consortium is not planning any layoffs following the acquisition, with plans to focus on the maintenance and development of airport infrastructure, passenger services and airline connectivity, The Edge reports.

Others are eyeing Malaysia: UAE-based airline Royal Jet inked a conditional Heads of Agreement with Sapura Resources Berhad (SRB) back in July 2023 to acquire SRB’s aviation business at Subang International Airport.

Saudi Arabia’s Blatco is lining up regional tire exports

KSA lines up tire exports: Saudi Arabia’s Black Arrow Tires (Blatco) and Thailand’s Golden Star Rubber inked an MoU for the supply of rubber to support a USD 470 mn tire manufacturing plant lining up regional exports, according to an Alekhbariya report and a post on X from the Federation of Saudi Chambers (FSC).

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Details: The agreement looks to support plans to establish a USD 470 mn tire plant in Yanbu, which will churn out 4 mn tires for small cars per year in its initial phase. The facility will eventually ramp up to an annual production capacity of 6 mn units, including large tires for buses and trucks, according to Alekhbariya. Some 50% of production is earmarked for local markets, while the rest will be exported to neighboring countries, Blatco officials said.

REMEMBER- Saudi is angling to become a global automotive industry hub: The Public Investment Fund (PIF) has been actively investing in EV makers and the automotive value chain for some time as part of its diversification agenda, including investing multiple times in US-based luxury EV firm Lucid. The fund also launched its own EV maker Ceer in a JV with Taiwan’s Foxconn. Late last year, PIF established a USD 550 mn JV with Italian tire manufacturer Pirelli to establish a Saudi plant with a production capacity of some 3.5 mn tires a year.

Aviation updates from UAE and Bahrain

AVIATION-

#1- UAE’s airline carrier Emirates has joined the Move to -15°C global coalition which aims to set standards for transporting perishable goods, according to a statement. The initiative involves implementing a three-degree temperature change, moving up to -15 degrees centigrade from the standard of -18 degrees centigrade, to cut down on energy consumption in the frozen food supply chain.

Why is this important? Emirates’ cargo arm SkyCargo transports some 900 to 1k tonnes of fresh food per day, with perishables making up its largest business unit by tonnage, according to the statement.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

More about the initiative: Launched last year, the initiative was based on the DP World-led Three Degrees of Change report targeting sustainable solutions in the perishables delivery sector. The coalition will investigate how to apply this research in practice by sharing data, recommending operational changes, working with members and stakeholders, and engaging with policymakers and regulators to raise awareness and promote advocacy.

#2- Rayan Air to lease MRO space at Bahrain International: Florida’s Rayan Air has inked a letter of intent (LOI) with Bahrain Airport Company (BAC) to lease dedicated space at Bahrain International Airport for maintenance, repair, and overhaul (MRO) activities, according to a press release. The agreement will focus on providing specialized maintenance solutions for A320 and B737 fleets, catering to airlines in Bahrain, Saudi Arabia, and the wider Middle East region.

#3- Etihad Airways orders more Airbus planes: The UAE’s Etihad Airways has ordered three Airbus A350 next-generation freighters, bringing its total orders of the A350 to 10, Freight Waves reports. Deliveries are expected in 2026.

We knew this was coming: Etihad Airways was in early discussions in October for a potential widebody aircraft with Boeing and Airbus. The airline was deciding between the Boeing 777x and the Airbus A350.

ICYMI: Etihad’s operating fleet continues to expand, with all six A321NEOs scheduled for delivery in 2024 now operating. The airline’s fleet has increased to 95 aircraft, an increase of 16 aircraft from last year.

DIGITALIZATION-

Egypt to digitalize trade operations: Egypt’s Suez Canal Economic Zone (SCZone) has inked a cooperation agreement with the General Organization for Export and Import Control to boost export and import services to and from the zone via a digital trade platform, according to a statement. The move looks to streamline operations by cutting down on operational costs and time-spent on product inspection.

OTHER STORIES WORTH KNOWING THIS MORNING-

DP World partners up with SailGP for global smart logistics: DP World has partnered up with SailGP to oversee their annual global racing competition. The firm will provide logistics services across five continents, including sea freight, courier services, and route optimization. (Dubai Media Office)
Qatar Airways partners up with MASkargo: Qatar Airways has entered into a strategic partnership with Malaysia Aviation Group’s cargo airline MASkargo that will see Qatar Airways Cargo Boeing 777 freighters operate twice weekly to Kuala Lumpur, adding 200 tonnes of capacity. (Statement)
Japan looks to boost investments in Egypt’s green hydrogen sector: Officials from Egypt’s General Authority for Investments and Freezones met with a delegation from Japan Bank for International Cooperation to discuss how Japan can invest in Egypt’s green hydrogen sector. (Statement).

France’s Russian LNG imports hit a record in 2024

France’s LNG imports from Russia hit a new record in 2024 with deliveries exceeding any prior annual tallies since shipments began in 2018, ship-tracking data compiled by Bloomberg finds. Several EU member states, including France, are stressing the need for better tracking of Russian LNG imports. Private firms are importing the fuel, meaning it’s “neither the states, nor the European Union that makes such decisions,” a French Energy Ministry spokesperson told Bloomberg. European firms are locked into long-term contracts with Russia’s Arctic Yamal LNG plant, including France’s Total Energies, Spain’s Naturgy Energy Group and Germany’s Securing Energy for Europe (SEFE) GmbH.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Looking forward: The EU will implement a ban on transshipments of Russian LNG cargoes in EU ports starting March 2025. This is forecasted to expand the volume of Russian LNG kept within Europe. EU-Permitted Russian LNG shipments have been regularly transferred between tankers in Belgian, French, and Spanish ports, before being transported to buyers in other countries like China, Japan, and Bangladesh.

Calendar

NOVEMBER

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

19-21 November (Tuesday-Thursday): Saudi International Maritime Forum, Dammam, Saudi Arabia.

20-21 November (Wednesday-Thursday): Saudi Rail, Riyadh, Saudi Arabia.

29 November (Friday): Egypt and Italy to launch a ro-ro shipping line connecting Damietta Port with Port of Trieste.

DECEMBER

2-3 December (Monday-Tuesday) Wings of Change Middle East, Riyadh, Saudi Arabia.

10-11 December (Tuesday-Wednesday): Rail Industry Summit, Casablanca, Morocco.

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai, UAE.

20 December (Wednesday): The Iran-Senegal Joint Economic Cooperation Commission, Dakar, Senegal.

JANUARY 2025

20-24 January (Monday-Friday): World Economic Forum Annual Meeting, Davos, Switzerland.

27-29 January (Monday-Wednesday): World Cargo Summit, Ostend, Belgium.

28-29 January (Tuesday-Wednesday): Green Shipping Summit, Rotterdam, The Netherlands.

29-30 January (Wednesday-Thursday): ShipTek International Conference, Dubai, UAE.

FEBRUARY

3-5 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

4-5 February (Tuesday-Wednesday): Seatrade Maritime Qatar, Doha, Qatar.

4-5 February (Tuesday-Wednesday): Airport Expansion Conference, Riyadh, Saudi Arabia.

10-11 February (Monday-Tuesday): Middle East Breakbulk conference, Dubai, UAE.

10-11 February (Monday-Tuesday): MRO Middle East, Dubai, UAE.

10-12 February (Monday-Wednesday): Sustainable Aviation Futures MENA, Abu Dhabi, UAE.

10-13 February (Monday-Thursday): Future Warehouses & Logistics 2025, Dubai, UAE.

18-19 February (Tuesday-Wednesday): Argus Green Marina Fuels Asia Conference, Singapore.

18-19 February (Tuesday-Wednesday): Middle East Procuretech Summit, Dubai, UAE.

19-21 February (Wednesday-Friday): Air Cargo Africa, Nairobi, Kenya.

20-22 February (Thursday-Saturday): Dubai Freight Camp, Dubai, UAE.

25 February - 1 March (Tuesday-Saturday): WCA Worldwide Conference, Dubai, UAE.

MARCH

APRIL

10 April (Thursday): Gulf Ship Fiance Forum, Dubai, UAE.

14 April (Monday): CargoIS Forum, Dubai, UAE.

15-17 April (Tuesday-Thursday): Transport Middle East 2025, Aqaba, Jordan.

15-17 April (Tuesday-Thursday): IATA World Cargo Symposium, Dubai, UAE.

16-17 April: Global Ports Forum, Dubai, UAE.

MAY

6-8 May (Tuesday-Thursday): Airport Show, Dubai, UAE.

12-15 May (Monday-Thursday): Saudi Smart Logistics, Riyadh, Saudi Arabia.

13-14 May (Tuesday-Wednesday): Global Ports Forum, Dubai, UAE.

20-22 May (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

JUNE

1-3 June (Sunday-Tuesday): Annual General Meeting & World Air Transport Summit 2025, Delhi, India.

2-4 June (Monday-Wednesday): Propak MENA, Cairo, Egypt.

JULY

1-3 July (Tuesday-Thursday): ASEAN Ports and Logistics 2025, Jakarta, Indonesia.

SEPTEMBER

24-26 September (Wednesday-Friday): Routes World, Hong Kong.

NOVEMBER

3-6 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

4-6 November (Tuesday-Thursday): Air Cargo Forum, Abu Dhabi, UAE.

17-21 November (Monday-Friday): Dubai Airshow, Dubai, UAE.

EVENTS WITH NO SET DATE

Mid-2025: Iraq will complete phase one of the construction of the Grand Faw Port.

DHL and Aramco’s logistics and procurement hub in Saudi Arabia will commence operations.

AD Ports-operated Safaga Port’s multi-purpose terminal will become operational.

Phase 3 of APM Terminals Tangier MedPort to be complete and operational.

1Q 2025: Sadr Park’s Logistics Center in Riyadh to be completed.

1Q 2025: Phase twoof Jafza Logistics Park to be completed.

2026

2026 UNCTAD Global Supply Chains Forum, Saudi Arabia.

2027

4Q 2027: Oman’s Musandam Airport construction to be completed.

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TODAY: Talabat’s IPO is covered + ADIA closes in on slice of Malaysia Airports.