Good morning, ladies and gentlemen. It’s the penultimate workday before the extended Eid Al Adha holiday, but the news cycle hasn’t quite entered vacation mode.

THE BIG STORY TODAY-

Aramco closed what is the “largest secondary offering in EMEA” in more than two decades, raising USD 11.2 bn from its sale of a 0.64% stake. Meanwhile, the World Bank maintained its growth forecast for the Kingdom in 2024 and 2025, with expectations that the economy will pick up steam next year.

^^ We have chapter and verse on these stories and more in this morning’s news well, below.

HAPPENING TODAY-

Shares of Saudi Manpower Solutions start trading on Tadawul’s main market this morning at SAR 7.50 apiece. The Riyadh-based labor agency’s stock will be allowed to trade within a ±30% range for the first three days before being capped at no more than 10% up or down after that before circuit breakers kick in. (All shares on Tadawul are subject to the 10% up-or-down rule.

REMEMBER- Smasco’s IPO drew in strong demand, with the institutional tranche of the offering closing 128x oversubscribed, drawing in orders worth SAR 115 bn. The company is taking a 30% stake to market in a secondary share sale, with the pricing of the offering set to raise some SAR 900 mn for Smasco.

Up next for capital markets: Miahona, Rasan, and Fourth Mills are all in the last legs of their IPOs.

ALSO- The Public Investment Fund’s FII Priority summit is on its second day today in Rio de Janeiro and comes to a close tomorrow. The invitation-only event, headlined Invest in Dignity, will bring together government officials and senior business and finance executives to deliberate on key topics including renewables, AI tech, and biodiversity. Check out the event’s factsheet (pdf). The last such event was held in February 2024 in Miami, while the Asia iteration was held in Hong Kong in December 2023.

WEATHER- Look for more heat, with some thunderstorms: Riyadh will see thunderstorms with a daytime high of 45°C which will drop towards 31°C at night. Makkah will see cloudy weather with a daytime high of 44°C and a low of 31°C, while Madinah is set for the mercury to peak at 45°C and hit a low of 31°C.

HAPPENING TOMORROW-

Crown Prince Mohammed bin Salman is scheduled to attend the G7 Summit, which kicks off tomorrow in Italy’s Borgo Egnazia resort in Apulia. Talks are set to focus on AI, energy, and addressing opportunities and challenges in Africa, China, and the Mediterranean. The summit wraps on Saturday.

PSAs-

#1- The Industry and Mineral Resources Ministry has updated requirements to obtain industrial licenses, it said in a post on X. The list of requirements — which varies depending on the industrial project’s progress — include a valid commercial register covering all industrial activity, safety and environmental approvals from authorities and other approvals from relevant authorities.

#2- All government entities in the Kingdom are going to be required to integrate their e-services into the Tawakkalna platform as mandated by The Digital Governance Authority (DGA), Okaz reported citing a directive from the DGA governor.

The details: The first phase of the integration process will cover about 30% of government e-services, with the second phase aiming to add another 35% by the end of 3Q 2024, reaching a total of 65% by 2025, it said. The DGA is looking to have all government bodies integrated into Tawakkalna by July 2026.

WATCH THIS SPACE-

#1- Shalfa gets green light for Nomu IPO: Riyadh-based waste management company Shalfa Group has lined up Capital Market Authority (CMA) approval to debut its shares on Tadawul’s parallel market Nomu, according to a CMA statement. Shalfa is looking to offer a 15% stake in the company to qualified investors.

#2- Abu Dhabi-based investment firm Eshraq Investments is looking to expand in the UAE and Saudi in a handful of “key” sectors, including technology, artificial intelligence, and healthcare, Chairman Fahad Al Qassim told CNBC Arabia (watch, runtime: 13:54).

#3- Some 351 residential and commercial properties across the Kingdom are part of 26 public auctions held by the Entrustment and Liquidation Center (Infath), according to state news agency SPA. The auctions — which kicked off yesterday and run until the end of the month — will be held in Riyadh, Makkah, Madinah, Al Qassim, Al Jawf, Hail, Tabuk, Asir, Al Sharqiya, and Jizan. More details are available on the Infath Auction Page.

DATA POINT-

Remittances from expats living in the Kingdom rose 14% y-o-y to SAR 11.4 bn in April, Arab News reported, citing data from Saudi Central Bank (Sama).

OIL WATCH-

#1- Opec still expects strong global oil demand: Opec maintained predictions that global oil demand will grow 2.2 mn barrels per day (bbl / d) this year and 1.85 mn bbl / d next year, the group said in its monthly report (pdf). It expects the services sector to maintain “stable momentum” throughout the second half of the year. “It is projected to be the main contributor to the economic growth dynamic in 2H24, particularly supported by travel and tourism, with a consequent positive impact on oil demand,” the report said.

The Kingdom’s crude oil production was slightly down by 32k barrels in May to 9 mn barrels per day, the report says, citing figures from secondary sources.

REMEMBER-Opec+ could start pumping more oil into the market over the fall. The alliance will keep in place current production cuts of 3.66 mn bbl / d until the end of September, before beginning to “phase out the cuts of 2.2 mn bbl / d over the course of a year from October 2024 to September 2025.” They are scheduled to meet again on Sunday, 1 December.

#2- China-bound oil exports are set to take a dip in July: Traders see Saudi crude oil deliveries to China falling to 36 mn barrels next month from 39 mn barrels in June, as Chinese refineries opt for cheaper sources of oil, Reuters reports. This comes even as Aramco cut its July official selling prices to Asian buyers, ending a five-month hike, the newswire reported earlier.

More Russian oil is flowing into Beijing: China’s oil imports from Moscow rose 166% to 378 mn tons in the first four months of the year, while that from Riyadh fell 16.5% to 1.6 mn bbl / d.

SPORTS-

#1- The national team lost 1-2 to Jordan in the AFC FIFA World Cup qualifiers at Al Awwal Stadium in Riyadh yesterday. Jordan now sits at the top of their group with 13 points after five wins and a loss, with Saudi coming in second with 13 points following four victories, a tie, and a loss.

#2- Formula E is set to return to Saudi in a double-header, with the two races taking place on 14 and 15 February at a new track location in Diriyah, according to Formula E’s season calendar.

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THE BIG STORY ABROAD-

The global press’ attention is squarely focused on the ongoing courtroom drama that is US politics, with news that US President Joe Biden’s son Hunter was convicted for obtaining a gun by lying about his drug use dominating the front pages in the states and beyond. Some think the verdict could be a help, rather than a hindrance, to the Biden campaign, with the New York Times writing that the verdict undercuts a key Trump talking point — and fundraising pitch — about a rigged justice system.

MEANWHILE IN TECH NEWS- Apple’s AI collab with OpenAI already seems to be paying off, with Apple shares shooting up 7.3% on the Nasdaq by the end of trading yesterday after having fallen nearly 2% the day before.

The expected boost in iPhone sales could see Apple become the world’s largest company once again, with its market cap now sitting at USD 3.18 tn, just behind the world’s most valuable company Microsoft with USD 3.22 tn.

FROM THE FRONT LINES OF THE TRADE WAR- The US Treasury is turning up the heat on foreign financial institutions with ties to Russia with plans to expand its secondary sanctions on the country. Any foreign financial institutions involved with sanctioned Russian entities will now be treated as if it’s dealing with Russia’s military-industrial complex.

CIRCLE YOUR CALENDAR-

Norah — Saudi’s first film to screen at Cannes — will hit theaters at home and abroad starting Thursday, 20 June, state news agency SPA reported. It tells the story of an illiterate young orphan Norah, crossing paths with an artist called Nader, who moved to the village to be a school teacher. The encounter helps Norah unleash a passion for art and a better future.

Saudi Film Nights by the Film Commission will land in Australia this month with screenings of four Saudi films, state news agency SPA reported. Movie enthusiasts in Sydney and Melbourne can watch adventure movie Hajjan, short film Me & Aydarous, comedy film Alhamour H.A and animated short movie Saleeg between Wednesday, 26 June to Friday, 28 June.

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