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Tuesday, 24 May 2022

More IPOs are being lined up in the Gulf + a Cypriot gas field you should really care about

The IPOs in the Gulf just won’t stop:

  • Abu Dhabi-based petrochemicals firm Borouge is set to raise some USD 2 bn in its upcoming IPO, after setting its share price at AED 2.45 (USD 0.67) a share. The company has already secured a total c.USD 570 mn worth of commitments from seven anchor investors including sovereign wealth fund ADQ, covering its books within an hour of opening. The company will offer some 3 bn existing shares — or a 10% stake — in its IPO. (Reuters)
  • Saudi Arabia’s Rawabi Energy hopes to raise up to USD 500 mn ahead of an IPO later this year, which could value the energy company at around USD 1 bn. People familiar with the matter said that Rawabi is working with New York’s Evercore on the funding, and has opened talks with potential investors. It is also talking to banks to appoint financial advisors for the sale. (Bloomberg)

The Gulf IPO market is red-hot right now thanks to surging oil prices: The region has hosted some of the biggest IPOs this year, and raised USD 4.8 bn during 1Q 2022, surpassing the European IPO market for only the second time since the global financial crisis.

NewMed Energy is making progress developing Cyprus’ Aphrodite gas field: Israeli energy company NewMed Energy and its partners at the Aphrodite gas field have agreed to “engage with a drill ship to drill the first production well,” a step which the company called “significant” in the development of the field, Reuters reported. The company did not disclose a timeline.

Why do we care? The Aphrodite field — estimated to hold up to 4.5 tn cubic feet of natural gas — could be key to Egypt’s ambitions to become a regional gas hub. Egypt and Cyprus are planning to lay a pipeline linking the field to LNG facilities on Egypt’s north coast, enabling it to export the gas to Europe and elsewhere. Flows from the field are expected to begin in 2024 or 2025.

Up EGX30 10,515 +0.5% (YTD: -12.0%)
Up USD (CBE) Buy 18.35 Sell 18.43
Up USD at CIB Buy 18.38 Sell 18.44
None Interest rates CBE 11.25% deposit 12.25% lending
Down Tadawul 12,236 -0.8% (YTD: +8.5%)
Down ADX 9,717 -2.2% (YTD: +14.5%)
Down DFM 3,307 -2.5% (YTD: +3.5%)
Up S&P 500 3,974 +1.9% (YTD: -16.7%)
Up FTSE 100 7,513 +1.7% (YTD: +1.8%)
Up Euro Stoxx 50 3,708 +1.4% (YTD: -13.7%)
Up Brent crude USD 113.42 +0.8%
Down Natural gas (Nymex) USD 8.70 -0.5%
Up Gold USD 1,858.70 +0.3%
Down BTC USD 29,318 -2.5% (YTD: -36.4%)


The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 586 mn (31.4% below the 90-day average). Regional investors were net buyers. The index is down 12.0% YTD.

In the green: Madinet Nasr Housing (+2.7%), Mopco (+1.9%) and Housing and Development Bank (+1.9%).

In the red: GB Auto (-2.8%), Fawry (-2.3%) and Ezz Steel (-1.6%).

Most indexes in Asia are in the red this morning, following US stock futures which have quickly lost momentum following yesterday’s rally. Shares in Europe are also on course to fall when markets open later this morning.

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