Connect with us

Stock Market

Saudi Aramco to Raise $11.2 Billion in Major Stock Offering

Published

4 months ago

on

Saudi Aramco is poised to raise at least $11.2 billion through a significant stock offering, the largest global deal of its kind in three years.

This strategic initiative is designed to support the Saudi government’s ambitious plans to transform the kingdom’s economy.

The government plans to sell nearly 1.55 billion shares at a price of 27.25 Saudi riyals ($7.27) each, insiders revealed on condition of anonymity.

This pricing represents a 6% discount from the stock’s last close of 29 riyals prior to the announcement.

Despite being in the lower half of the anticipated range of 26.70 to 29 riyals, the shares have been trading below the top end since the announcement. They closed at 28.30 riyals on Thursday, having hit a year-low earlier in the week.

This secondary offering is a rare event in the region, with previous similar deals involving Saudi Telecom Co. and Tadawul Group Holding, both of which were priced at roughly a 10% discount.

The high demand for shares was evident within hours of the books opening on Sunday, with significant interest from foreign investors.

Although exact figures on overseas demand were not disclosed, it was reported that foreign bids were sufficient to fully cover the offering.

This marks a notable shift from Aramco’s initial public offering (IPO) in 2019, where global investor participation was minimal, forcing the government to rely heavily on local investors.

This time, the substantial foreign interest underscores a renewed confidence in the Saudi market, even as the global oil outlook remains uncertain due to fluctuating supply and demand dynamics, particularly from China.

A major selling point for this offering is Aramco’s impressive $124 billion annual dividend, the largest globally, making the stock highly attractive despite being priced higher than major Western oil companies.

The dividend alone exceeds the combined returns of the next eight largest payouts worldwide.

The Saudi government, led by Crown Prince Mohammed bin Salman, is leveraging this stock sale to fund its Vision 2030 economic diversification plan, aimed at reducing the kingdom’s dependency on oil revenue.

The International Monetary Fund (IMF) has indicated that Saudi Arabia needs oil prices to be around $100 per barrel to support its ambitious spending plans. Currently, crude oil prices hover around $83 per barrel, with recent dips below $80.

The kingdom remains the principal shareholder of Aramco, holding about 82% of the company, while the Public Investment Fund (PIF) retains a 16% stake.

This sale will not alter the government’s majority ownership.

The share sale is being managed by SNB Capital, with Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Bank of America Corp., and Morgan Stanley acting as joint global coordinators. M. Klein & Co. and Moelis & Co. are serving as independent financial advisers.

This major stock offering is not just a financial maneuver but a pivotal component of Saudi Arabia’s broader strategy to reshape its economic landscape and secure a more diversified and sustainable future.

The final pricing will be announced on Friday, setting the stage for a new chapter in the kingdom’s economic evolution.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Continue Reading
Comments

Dividends

Access Holdings to Pay N15.99 Billion Interim Dividend, Aig-Imoukhuede to Receive N1.151 Billion

Published

4 days ago

on

September 24, 2024

By

Aigboje Aig-Imoukhuede

Access Holdings Plc has announced an interim dividend of 45 kobo for every ordinary share of 50 kobo held in the company in the first half (H1) of 2024.

With 35.545 billion in outstanding shares, this translates to N15.99 billion in interim dividend. However, Aigboje Aig-Imoukhued, the chairman of Access Holdings, will take home N1.151 billion in dividend.

The chairman presently holds 119,231,715 direct shares and 2,438,256,720 indirect shares in the company, according to the company’s latest financial statement obtained by Investors King.

According to the lender, subject to appropriate withholding tax the dividend will be paid to shareholders whose names appear on the Register of Members at the close of business on Thursday, October 3, 2024.

The bank will pay dividends on Thursday, October 17, 2024 to all shareholders whose names appear on the Register of Members at the close of business on Thursday, October 3, 2024.

These shareholders are expected to have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

However, shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on https://theaccesscorporation.com/ and complete and submit it to either the Registrar, their respective Banks or any Access Bank Plc branch.

Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.

Access Holdings grew profit after tax by 108% to N347.922 billion from N167.601 billion filed in H1 2023 while gross earnings jumped 133.5% from N940.311 billion in the first half (H1) of 2023 to N2.196 trillion in H1 2024.

Continue Reading

Nigerian Exchange Limited

Stock Investors Gain N131 Billion on Tuesday

Published

1 week ago

on

September 18, 2024

By

Nigerian Exchange Limited - Investors King

Nigeria’s equities market opened the holiday-shortened trading week in green as investors bought banking and consumer goods stocks despite record profit taking in insurance, industrial, oil & gas stocks.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market,” according to United Capital research analysts.

The analysts said the bulls “will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns”.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation appreciated by 0.23 percent and N131billion from preceding day’s 97,456.62 points and N56.002 trillion respectively to 97,685.63 points and N56.133 trillion.

The market’s year-to-date (YtD) return rose to 30.64 percent.

According to Meristem research analysts, “While we expect subdued participation in the Nigerian equities market this week, we anticipate that buying activity will outweigh profit-taking. Our outlook is hinged on the belief that no major negative catalysts are expected to shift market direction this week. We anticipate that investors will continue selective buying, seeking opportunities across various sectors.

“Additionally, macroeconomic developments and corporate actions from companies could stimulate moderate buying interest in the market. We also do not foresee a significant shift towards the fixed-income market as yields have started to stabilize. However, we acknowledge the potential for profit-taking as short-term investors may look to capitalize on recent gains. Overall, we expect the market to close in the green zone this week,” Meristem analysts said.

Continue Reading

Dividends

Guaranty Trust Holding Company Declares N1 Interim Dividend, Sets October 7 for Payout

Published

2 weeks ago

on

September 13, 2024

By

GTBank -Investors King

Guaranty Trust Holding Company Plc has announced its plan to pay a sum of N1 per share of 50 kobo as interim dividends, to all registered shareholders on October 7, 2024.

According to a recent statement issued by the company on NGX , “the dividend is subject to withholding tax deduction, and will be paid to shareholders whose names appear in the register as of September 25, 2024.”

In its recently released audited consolidated and separate financial statements for the period ended June 30, the Group reported profit before tax (PBT) of N1.004 trillion, becoming the first Nigerian financial institution to cross the N1 trillion mark in profit.

This represented a 206.6 percent increase over N327.4 billion recorded in the corresponding period that ended June 2023.

The group’s profit for the period was slated at N905.67 billion, a 222 percent increase from 280.52 recorded in the corresponding period that ended June 2023.

“On October 7, 2024, the dividend will be paid electronically to ordinary shareholders whose names appear on the Register of Members as at September 25, 2024, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly to their bank accounts,” the statement said.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending