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Saudi bourse operator Tadawul prices IPO at top of range, raises $1.01 bln

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Saudi Tadawul Group raised 3.78 billion riyals ($1.01 billion) on Sunday via an initial public offering (IPO) that was priced at the top of the indicated range and 121 times oversubscribed.

The company, which operates the kingdom's stock exchange, sold 36 million shares at 105 riyals apiece, it said in a statement after market hours. The price range given earlier had been 95 riyals to 105 riyals per share.

The total order book was 458 billion riyals, it said.

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The IPO of Saudi Tadawul, which is backed by Saudi Arabia's sovereign wealth fund PIF, is one of a flurry of deals in the kingdom following the 2019 listing of Saudi Aramco, the world's biggest flotation, which raised $29.4 billion.

Prominent IPOs this year have been ACWA Power International's $1.2 billion flotation and Saudi Telecom Co's IPO of Arabian Internet and Communications Services Co, which raised about $966 million.

The Saudi stock market is the Arab world's largest. Its listed companies have a total market capitalization of nearly $2.7 trillion.

Tadawul has converted itself into a holding company, with the bourse, called Saudi Exchange, its securities clearing and depository businesses and technology services becoming subsidiaries.

SNB Capital Co, JPMorgan Saudi Arabia and Citigroup Saudi Arabia are acting as financial Advisors, joint global coordinators, underwriters and bookrunners for the IPO.

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Saudi Tadawul Group sets price range for IPO at $25 to $27 per share

Saudi Tadawul Group to offer 30 pct of company’s capital in IPO

Saudi Arabia’s utility developer ACWA Power plans IPO on Riyadh bourse

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Iran gas flow to Turkey cut by technical failure: Officials

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Iran has cut gas flows to Turkey due to a technical failure, prompting Turkish authorities to order gas-fueled power plants to cut gas use by 40 percent, sector officials said on Thursday.

Turkish natural gas distributors were also asked to reduce supply to 60 percent for large consumers except for that used for heating, the Turkish sector officials said, adding that schools and hospitals will be exempted.

Iran notified Turkey of 10-day cut to natural gas flows, but talks are ongoing to start flows earlier, the officials added.

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Turkey, UAE sign FX swap deal worth $5 billion

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Turkey signed a $4.9 billion currency swap agreement with the UAE, boosting dwindling foreign-exchange reserves depleted by the country’s financial turmoil.

The three-year deal reflects a warming of ties that began last year after a decade of frosty relations that rippled across the Middle East. Turkey has already signed swap deals with Qatar, South Korea and China to prop up its reserves, which shrank more than 10 percent in December as the central bank intervened in the foreign-exchange market to stem the lira’s decline.

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Reserves totalled just under $110 billion on Jan. 7, according to official data, but fall significantly below zero when the central bank’s liabilities from swap deals with foreign counterparts or commercial lenders are stripped out. The lira, meanwhile, still lost about 40 percent of its value last month alone, when investors fled lira assets in search of protection against a worsening inflation outlook.

The run on the currency began after the central bank started a cycle of interest rate cuts in September at President Recep Tayyip Erdogan’s demand. Erdogan argues that lower borrowing costs will curb price pressures, contrary to what most central bankers think.

The size of Wednesday’s swap agreement in local currencies is 18 billion UAE dirhams or 64 billion Turkish liras, according to separate statements by both monetary authorities.

The deal followed a visit by Abu Dhabi’s Crown Prince, Sheikh Mohammed bin Zayed Al Nahyan, to Turkey in November.

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Turkey, UAE say they want deeper cooperation, trade after Dubai talks

UAE establishes $10 bln fund to support investments in Turkey

Turkey, UAE to sign accords on energy, technology at talks: Officials

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UAE energy minister looks ahead to supply 400,000 bpd, ‘not worried’ about short term

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UAE energy minister Suhail al-Mazrouei said on Wednesday that he was “not worried about the short term” when asked about predictions that oil prices will rise above $100.

The price of benchmark Brent crude gained 0.33 percent on Wednesday to $87.76 per barrel, as oil rose for a fourth day as an outage on a pipeline from Iraq to Turkey added to worries about an already tight supply outlook.

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“I will never give a prediction on a price. We will continue to do our work of increasing the supply of 400,000 bpd,” he told reporters on the sidelines of the Abu Dhabi Sustainability Week.

“I am not worried about the short term,” he said. “I am worried about the long term if there are voices saying we should not invest.”

Analysts are forecasting tight oil supply in 2022, driven in part by demand holding up much better than expected as the highly contagious omicron coronavirus variant spreads, with some predicting the return of $100 oil.

Mazrouei said all producing countries and international oil companies should invest in hydrocarbons to ensure a smooth energy transition.

Read more:

UAE’s ADNOC works to ensure reliable supply after fuel depot incident

Key Iraq oil pipeline to restart after explosion in Turkey

Global oil demand expected to remain ‘robust’ despite COVID omicron variant: OPEC

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