Aramco may allocate over half of its secondary offering to international investors
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Aramco may allocate over half of its secondary offering to international investors
Aramco will allocate about 60% of its secondary share sale to foreign investors due to high international demand, surpassing its 2019 IPO. The shares start trading on Tadawul today, with excess funds refunded by June 11.
Reuters reported over 50% of shares went to foreign investors from the US, UK, Hong Kong, and Japan, adding over 120 new foreign investors. Demand exceeded $65 billion globally.
Aramco set the final share price at SAR 27.25, aiming to raise around $11.2 billion. The offering, 4-5 times oversubscribed, is the highest value globally in three years. A greenshoe option could increase the total to $12.4 billion.
The Saudi government, holding 82% of Aramco, aims to diversify income sources and fund large projects. Proceeds will likely go to the Public Investment Fund (PIF), which owns 16%.
The follow-on offering sold out quickly, with 90% to institutional investors and 10% to retail. It complied with Regulation S, facilitating global participation, and impacted market liquidity amid oil production cuts.
Egypt secures IMF deal, unlocking $820M pending board approval
The International Monetary Fund (IMF) and Egyptian authorities have reached a staff-level agreement on policies needed to complete the third review under the Extended Fund Facility (EFF), allowing Egypt access to approximately $820 million.
Recent Egyptian efforts have improved economic conditions despite regional challenges. Key policies include tight monetary conditions to reduce inflation and a flexible exchange rate.
Fiscal consolidation is on track, with future efforts to focus on growth-friendly revenue mobilization, social spending, debt management, and structural reforms. The agreement highlights the need for private sector growth, prudent fiscal policies, and tight monetary policy to achieve macroeconomic stability and inclusive growth.
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Egypt's economy, while showing signs of recovery, faces risks from geopolitical tensions and needs to diversify and boost private sector participation for sustainable growth.
Turkey nears transaction tax on stock and crypto trading
Turkey is considering a tax on stock and cryptocurrency transactions. Bloomberg reported that the Finance Minister discussed this plan last week, though Minister Mehmet Simsek denied any imminent implementation, suggesting only a “very limited” tax might be considered.
This potential tax aims to strengthen Turkey’s fiscal position and stabilize prices. With a surge in stock market participation—equity accounts have jumped to 8.3 million this year—such a tax could generate significant revenue.
Analysts believe it might also reduce market volatility and speculation, fostering a healthier investment culture.
UAE's Fortis Targets Saudi Market with Tailored Fintech Solutions
Fintech companies are expanding rapidly in Saudi Arabia, drawing attention as a hub for financial technology. UAE-based Fortis is introducing a comprehensive suite of services, including point of sale, order management, and payment solutions, to support SMEs in the Kingdom.
Fortis is initiating its operations in the UAE, with plans for further expansion into Saudi Arabia and other countries in the MENA region. The company aims to assist SMEs in line with Vision 2030, enhancing their operational capabilities to contribute to GDP growth and technological advancement.
Despite its recent entry into the market, Fortis has shown promising revenue growth, backed by a $20m investment led by Opportunity Venture, with plans to utilize these funds to propel the company's expansion, with Saudi Arabia being a key focus due to its large market and development projects.
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