Aramco could float more shares on Tadawul

More Aramco shares up for grabs? Saudi Aramco will reportedly move forward with stalled plans to list more shares on the Tadawul — in what is set to be one of the biggest share sales in recent years, sources told Bloomberg. The oil giant is looking to raise at least SAR 40 bn (USD 10 bn) in proceeds from the offering.

Aramco made its Tadawul debut in 2019, raising over USD 29 bn in what remains to be the biggest IPO in history. The company floated a 1.5% stake for a top of the range price of SAR 32 a piece in a transaction that valued the company at USD 1.87 tn.

The Enterprise take: Aramco would have to float 1.3 bn shares if it were to raise the minimum target of SAR 40 bn at yesterday’s closing share price. The share price fell 2.2% to SAR 30.6 per share on yesterday’s close.

Israel’s war on Gaza is “exacerbating an already challenging environment for neighboring countries and beyond,” warns the IMF in its latest Regional Economic Outlook (pdf) for the Middle East and North Africa,. The report also cautions that if the conflict spreads outside the enclave and disruption in the Red Sea escalates, the region could face a “severe economic impact, including on trade and tourism.”

ICYMI- The Fund on Tuesday cut its growth projection for the region 0.5 percentage points to 2.9%.Disclaimer: The IMF’s outlook for the region and headline growth figures are based upon the assumption that the war on Gaza and wider disruptions stemming from it start to ease in the first quarter of 2024. However, with Israeli military officials predicting the conflict continuing throughout the year, Israeli ministers calling for ethnic cleansing and settlements in Gaza, and ceasefire negotiations hitting roadblocks, the conflict shows few signs of ending soon.

THE CLOSING BELL-

The ADX fell 0.1% yesterday on turnover of AED 1 bn. The index is down 0.7% YTD.

In the green: Fujairah Cement Industries (+5.6%), National Company for Tourism and Hotels (+5.6%) and Umm Al Qaiwain General Investment (+4.4%).

In the red: Union Ins. Company (-3.4%), National Bank of Ras Al Khaimah (-3.3%) and Eshraq Investments (-2.6%).

Over on the DFM, the index closed flat on turnover of AED 653.8 mn, while Nasdaq Dubai fell 0.2%.

Asian markets are mixed in early trading this morning after the US Federal Reserve yesterday poured cold water on expectations that it could start cutting interest rates as early as March. The ASX 200, Nikkei, and Shanghai were all in the red, while the Kospi and Hang Seng are (just barely) clinging to the green. Futures point to a soft opening in Europe, with most major benchmarks in the red, while Wall Street could shrug off concerns — futures for the Dow, Nasdaq, and S&P 500 are all in the green at dispatch time this morning.

CORPORATE ACTIONS-

GFH Financial Group sells 3.5% treasury shares to Southern Star Investments: GFH Financial Group signed an agreement to sell 134.3 mn treasury shares, equivalent to 3.5% of its total issued shares, to Southern Star Investments, according to an ADX disclosure.