September Fourth Week Newsletter of Middle East Business News
Dubai Increases Salik IPO Size to $1 Billion on Strong Demand - Bloomberg
– The government will now sell 1.87 billion shares in Salik PJSC, representing a 24.9% stake in the company, it said in a statement on Friday. The initial plan had been to sell a 20% stake. The offer price remains unchanged at 2 dirhams ($0.54) per share.
– The increase in size comes after investors snapped up all shares on offer within hours of the IPO opening on Tuesday.
– The institutional tranche of the IPO will increase to 1.72 billion shares, representing 92.2% of the deal, while retail investors will get 146 million shares.
Abu Dhabi’s IHC Buys 15% Stake in IPO Candidate Burjeel Holdings - Bloomberg
– The acquisition will aim to continue to scale and diversify IHC’s investment in the healthcare sector locally and regionally
– Founded in 2007, Burjeel has 61 operating assets, including hospitals and medical centers, in the UAE and Oman.
Dubai Court Orders Sanjay Shah, Others to Pay $1 Billion in Cum-Ex Case - Bloomberg
– The Danish tax agency, which confirmed the ruling, said it “is satisfied with the decision of the appellate court against one of the central players in the fraud committed against Denmark.”
– Shah was named as the mastermind of the scheme in which pension plans filed for tax returns to which they weren’t entitled, because they never paid the taxes to begin with. Shah, a British national, has always maintained his innocence.
– Denmark and the United Arab Emirates signed an extradition deal in March, with Shah’s handover being one of the main purposes.
SPAC Winter Spreads to the Middle East With Two Deals Delayed - Bloomberg
– Abu Dhabi-based private equity firm Gulf Capital is holding off on its vehicle’s initial public offering after pushing back a summer deal that would have been one of the first SPACs in the UAE capital.
– Investcorp, the Middle East’s biggest alternative asset manager, aims to list in November after failing to complete a deal before the summer.
– Both Middle Eastern firms that have gone public after mergers with US blank-check firms this year have fared poorly. Spotify Technology SA rival Anghami is down 76% since its debut in February, while Dubai-based ride sharing firm Swvl Holdings Corp. has dropped about 85%.
– SPACs are cash shell companies that raise money from investors in an initial public offering with the sole purpose of buying a private business within a specified time frame.
Orna Barbivay Profile: Ex-General Focused on Israel’s Economy - Bloomberg
– Orna Barbivay was the first woman to attain the rank of major general in the army, and is now the first to become economy minister.
– The job means presiding over an economy riven by inequality as vast amounts of wealth pour into its vaunted technology sector. The difference between the tech and non-tech sectors is so vast that Barbivay says she’s dealing with “two economies.”
– She said in an interview. “My job is to reduce the gap.”
Oman’s OQ Picks BofA for $800 Million Gas Pipeline IPO - Bloomberg
– The IPO of OQ Gas Network could raise as much as $800 million.
– The country has only had a small number of IPOs in the last decade. The most recent sizable deal was Omani Qatari Telecommunications Co.’s IPO in 2010 that raised $475 million.
– OQ has also discussed the possibility of a dual listing in Muscat and Saudi Arabia.
– If OQ opts for a dual listing, it would be one of the Middle East’s first.
Saudi Oil Driller Hires Goldman, HSBC, SNB Capital for IPO - Bloomberg
– The firm will sell 26.7 million shares, or a 30% stake, in initial public offering.
– the proceeds will be used to scale up onshore and offshore fleet and expand operations in the Gulf Cooperation Council region.
– Arabian Drilling operates 45 rigs and had revenue of $586 million last year. It also has an order backlog of $2.2 billion.
Turkey's Erdogan Vows Half-Million New Homes in $50 Billion Vote Push - Bloomberg
– Poorer voters are increasingly blaming the government for policy mistakes that lowered their purchasing power
– According to the plan unveiled by Erdogan on Tuesday, state-run housing agency TOKI will build 500,000 homes and sell 250,000 land plots to qualifying applicants
– The government will extend repayment period to 20 years to keep monthly payments at as low as $125 in a country where the minimum monthly wage is about $300.
– Prices and rents have more than doubled in less than a year in largest cities such as Istanbul, while salary increases have lagged far behind.