Latest news with #UnitedCartonIndustries
Business Recorder
an hour ago
- Business
- Business Recorder
Gulf stocks settle varied on tariff uncertainty, rise in oil prices
DUBAI: Stock markets in the Gulf ended varied on Monday, as investor sentiment remained fragile after US President Donald Trump's threat to double tariffs on worldwide steel and aluminium. Trump accused China of violating a bilateral deal to roll back tariffs and announced a 50% tariff on steel and aluminium, rattling international trade. The tariffs are set to come into effect starting June 4. Oil prices - a catalyst for markets in the Gulf - jumped by more than 4% after the OPEC+ group decided to keep output increases in July at the same level as the prior two months. . Brent crude futures were up 3.97%, at $65.27 a barrel by 1220 GMT. The Organization of the Petroleum Exporting Countries and its allies, decided on Saturday to raise output by 411,000 barrels per day in July. S&P 500 futures fell 0.5%, while Nasdaq futures lost 0.7%, suggesting a retreat at the opening bell later. Saudi Arabia's benchmark stock index settled 0.23% higher with packaging provider United Carton Industries up 4.52% and industrial company Savola Group up 4.66%. 'Sector performance was mixed but generally supportive, notably from the banking sector, which had experienced significant losses recently. Energy stocks also contributed positively, buoyed by higher oil prices,' said Joseph Dahrieh, Managing Principal at Tickmill. Al Rajhi Bank, Saudi Arabia's second-largest lender by assets, settled up 1.24%. The UAE stock markets presented a mixed picture, with Dubai's main share index settling flat and Abu Dhabi's, benchmark index finishing down 0.39%. The Abu Dhabi index recorded a second straight session of losses. 'The Dubai stock market was relatively stable after two previous sessions of losses. Momentum could remain intact and the market could continue to rise,' said Dahrieh. In Dubai, food and groceries delivery provider Talabat Holding was down 1.39%, while Amlak Finance rose by 14.55%.
Zawya
13 hours ago
- Business
- Zawya
Mideast Stocks: Gulf stocks settle varied on tariff uncertainty, rise in oil prices
Stock markets in the Gulf ended varied on Monday, as investor sentiment remained fragile after U.S. President Donald Trump's threat to double tariffs on worldwide steel and aluminium. Trump accused China of violating a bilateral deal to roll back tariffs and announced a 50% tariff on steel and aluminium, rattling international trade. The tariffs are set to come into effect starting June 4. Oil prices - a catalyst for markets in the Gulf - jumped by more than 4% after the OPEC+ group decided to keep output increases in July at the same level as the prior two months. Brent crude futures was up 3.97%, at $65.27 a barrel by 1220 GMT. The Organization of the Petroleum Exporting Countries and its allies, decided on Saturday to raise output by 411,000 barrels per day in July. S&P 500 futures fell 0.5%, while Nasdaq futures lost 0.7%, suggesting a retreat at the opening bell later. Saudi Arabia's benchmark stock index settled 0.23% higher with packaging provider United Carton Industries up 4.52% and industrial company Savola Group up 4.66%. "Sector performance was mixed but generally supportive, notably from the banking sector, which had experienced significant losses recently. Energy stocks also contributed positively, buoyed by higher oil prices," said Joseph Dahrieh, Managing Principal at Tickmill. Al Rajhi Bank, Saudi Arabia's second-largest lender by assets, settled up 1.24%. The UAE stock markets presented a mixed picture, with Dubai's main share index settling flat and Abu Dhabi's, benchmark index finishing down 0.39%. The Abu Dhabi index recorded a second straight session of losses. "The Dubai stock market was relatively stable after two previous sessions of losses. Momentum could remain intact and the market could continue to rise," said Dahrieh. In Dubai, food and groceries delivery provider Talabat Holding was down 1.39%, while Amlak Finance rose by 14.55%. Qatar's benchmark stock index settled 0.16% lower. Commercial Bank was the top loser on the index, down 1.78%. The index touched its lowest levels since May 1. Outside the Gulf, Egypt's blue-chip index fell 0.54%, extending losses for a second consecutive session. Real estate companies took a hit, with Orascom Development Egypt down 3.2% and Emaar Misr for Development down 3.01%. SAUDI ARABIA up 0.23% to 10,850.1 ABU DHABI down 0.395 to 9,647.05 DUBAI inched up 0.08% to 5,484.7 QATAR down 0.16% to 10,484.1 EGYPT down 0.54% to 32,325.1 BAHRAIN inched up 0.09% to 1,920.52 OMAN up 0.12% to 4,570.8 KUWAIT up 0.17% to 8,847.1 (Reporting by Rishab Shaju in Bengaluru; Editing by Shailesh Kuber)
Zawya
6 days ago
- Business
- Zawya
Valuation concerns, profit booking weigh on United Carton's debut trade on Tadawul
Shares of Saudi Arabia's United Carton Industries Company (UCIC) closed flat on Tuesday's trading debut, with tariff threats, along with profit booking and overstretched valuations turning away investors, according to analysts. Despite being nine times oversubscribed and raising proceeds to the tune of 600 million Saudi Arabian riyals ($160 million), the stock closed lower by 1.5% at 49.25 riyals per share, as against its offer price of 50 riyals. The mixed performance was also visible on Wednesday with the stock dropping to lows of SAR 46.60 in early trade, with the last trade settling at SAR 46.85 by 2.30pm local time. Vijay Valecha, Chief Investment Officer, at UAE brokerage Century Financial said that even though the stock opened 6% higher at 53 riyals apiece and had rallied as much as 9% later during the day, 'signalling strong investor interest and participation in the IPO,' the stock's overall performance was a result of a confluence of factors, 'chief among them being concerns around valuation.' 'With a market capitalisation of approximately SAR 2 billion and operating earnings of SAR 124.7 million in 2024, the company is trading at a price-to-earnings multiple of 16.16x — notably above the Asia Pacific (developed) industry median of 13.53x. This premium may have tempered investor appetite at the time of listing,' Valecha explained. He continued: 'Additionally, the stock may have closed lower after a round of profit-booking, as some IPO participants were likely short-term traders aiming to capitalise on immediate listing gains rather than holding for long-term value. Lastly, although the company has limited direct exposure to [US President Donald] Trump's tariffs, its industry could face some indirect pressures in the form of elevated input costs and softer demand from international customers impacted by tariffs.' Profit booking UCIC shares opened at SAR 53 and hit a high of SAR 54.5 within the first five minutes of trading before finally closing at a low of SAR 50.5 on day one. Trading volume exceeded 17 million shares, representing approximately 1.5 times the 12 million secondary shares offered. 'It must be noted that the volume in the first five minutes was at 1.68 million shares. For comparison, the IPO was for about 12 million or 30% of the company's total issued share capital, meaning that about 14% of the company's floating shares were traded within the first five minutes alone. Given this, there was an immense profit booking after the price hit the high mark of SAR 54,' Valecha said. Added pressures emerged from the 'slightly stretched valuations,' he added. 'UCIC is a corrugated company in the Developed Asia Pacific region. The median P/E ratio of the listed companies operating in the containers and packaging segment is approximately 13.5. Meanwhile, the P/E ratio for UCIC is approximately 16.2 (market cap of SAR 2.016 billion / net income from operations of SAR 124.7 million). This implies that UCIC is slightly overvalued in comparison to its peers.' Flynas, SMC IPO Following the UCIC debut, all eyes are on the Saudi Flynas IPO, with Specialized Medical Company (SMC) close behind. 'The market could find support as it continues to see strong interest in Saudi IPOs, including the upcoming Flynas listing. Successful IPOs could help attract local and international capital to the stock market, which could help stabilise prices,' Valecha said. 'The SAR 4.1 billion IPO of Flynas, which opened today for retail participation, while being about 100 times subscribed by institutions, indicates massive investor demand,' said Valecha. 'On the other hand, Specialized Medical Company (SMC) extended its book-building period to allow qualified investors to review their bids, while postponing the retail offering period to June 15.' SMC has though confirmed its commitment to the IPO, stating the listing remains on track, and the business fundamentals and long-term growth strategy remain unchanged. One deal still awaiting an intention to float is Ejada Systems, with its Capital Market Authority approval expiring on June 23. (Writing by Bindu Rai, editing by Seban Scaria)
Zawya
6 days ago
- Business
- Zawya
United Carton first to trade in run of Tadawul floats: IFR
Shares in United Carton Industries saw mixed performance on their trading debut on Tuesday, the first in a batch of Tadawul deals nearing completion following a busy start to the second quarter. Shares opened up 6% at SR53 and despite falling back from the open held above SR50 IPO pricing until selling in the final hour sent shares sharply down to close just below at SR49.25. More than 17m shares changed hands, nearly 1.5 times the 12m secondary shares sold in the SR600m (US$160m) IPO. Al Rajhi Bank was sole bookrunner. Saudi Arabia has seen liquidity put to the test with three main market deals taking advantage of the window between Eid al-Fitr at the end of March and Eid al-Adha in early June, a window made shorter by initial caution following US president Donald Trump's tariff announcements in April. The SR4.1bn IPO of low-cost carrier Flynas opens for retail subscriptions on Wednesday having been nearly 100 times covered on the institutional leg. Final allocations and refunds are due before Tadawul trading ends on June 4 for Eid al-Adha. Trading resumes on June 11. An extension has been applied to the SR1.8bn–SR1.88bn listing of Specialized Medical Company to allow investors to amend their orders following published changes to the company's financials, with retail subscription now running from June 15–16. One deal still awaiting an intention to float is Ejada Systems, for which Capital Market Authority approval expires on June 23. Under CMA rules, deals have to complete within six months of approval though extensions are possible, particularly if the company is able to at least launch within the approval window. Alternatively the company may have to seek approval at a later date. While a narrow window opens between Eid al-Adha and summer, most bankers in the region are focusing on the IPO pipeline from September, with similar dynamics applying in neighbouring UAE. Ali Khalpey, head of ECM at EFG Hermes, which is working on SMC alongside SNB Capital, predicted around eight post-summer IPOs in the UAE, Saudi Arabia and Kuwait with one deal potentially launching before summer. 'We see a reasonable path to getting deals done. It's been a good couple of weeks and there is a very strong pipeline we hope to convert,' he said. 'People have a lot of cash they have built up and are looking to deploy it. On SMC and Flynas, books were very well covered and appetite to participate was strong. Saudi local demand is back and in bull market mode while international demand is also very good.' While the IPO pipeline remains more time constrained there is widespread enthusiasm among bankers and investors for a growing role for secondary and accelerated options, with bankers saying potential candidates could launch before summer. Like others in the region, Khalpey also sees a growing presence for secondary offers with test cases such as Adnoc Gas showing investors are comfortable with formats such as accelerated bookbuilds. 'Secondaries are part of the deepening of the market,' said Khalpey. 'The challenge is finding more shareholders to sell. Most don't want to sell or don't have need of capital and a lot of businesses are already very capital generative.' John Wilkinson, co-head of EMEA ECM origination at Goldman Sachs, said there is visibility on multiple accelerated offers in Saudi Arabia and the UAE this year with conversations happening regularly. 'It's taken a while for the market to come to terms with ABBs,' Wilkinson said. 'It's taken a while to understand why the issuer is selling and the associated messaging but there is growing comfort with the product from the buyside in the region with a number having proven attractive in generating returns for investors with pricing more in line with international practice. For private companies you can't tell someone they have to offer a meaningful discount at IPO and that's the only liquidity event they get. In particular for privately owned businesses it has a really important seeding and behavioural effect on the IPO market.'
Bloomberg
7 days ago
- Business
- Bloomberg
Middle East's First IPO Since Tariff Turmoil Sees Choppy Debut
Saudi packaging manufacturer United Carton Industries Co.'s stock climbed amid a mixed debut in Riyadh, a sign that broader market turbulence may be impacting Middle Eastern listings. Shares in the firm rose 2% to 51 riyals apiece mid-morning on Tuesday, after soaring as much as 9%. At one point, the shares dropped to 49 riyals, a 2% dip from the offer price.
