France's OVHcloud trims IPO target to 350m euros

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Updated 05 October 2021
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France's OVHcloud trims IPO target to 350m euros

  • Finance chief Yann Leca said the new sum was "more than enough" to finance OVHcloud's growth plans until 2025
  • Initial trading in the stock is expected to start on Oct. 15, with a formal market debut on Oct. 19

OVHcloud, touted by French politicians as a potential alternative to U.S. cloud services firms, has cut the amount of money it plans to raise in its stock market debut to 350 million euros ($406 million) amid signs of a faltering IPO market.


The company, which announced in September it planned to raise up to 400 million euros in its initial public offering (IPO), on Tuesday set a price range of 18.50-20 euros per share for the flotation, valuing it at 3.5-3.74 billion euros.


Finance chief Yann Leca said the new sum was "more than enough" to finance OVHcloud's growth plans until 2025.


He also highlighted the company had recently received 58 million euros from its insurance companies after a fire at one of its data centres in Strasbourg in March.


"Regardless of market conditions, it seemed desirable and preferable to launch the operation at this time," CEO Michel Paulin told reporters.


As well as the issue of new shares, investors such as the Klaba family, which helped set up the company, will sell some existing shares, raising around 50 million euros.


Initial trading in the stock is expected to start on Oct. 15, with a formal market debut on Oct. 19.


After a flurry of flotations this year, France's IPO market was dealt a blow last week when healthcare property group Icade Santé delayed its debut, citing volatile market conditions.


Leca said OVHcloud did not rule out returning to the market for additional funds in the future.


OVHcloud is the biggest European-based cloud services provider and is seen by some politicians as a potential alternative to U.S. giants Amazon Web Services, Microsoft's Azure and Google Cloud, which dominate the market.


However, the company has so far lacked the scale and financial clout to dent their market share.


Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

Updated 6 sec ago
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Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

  • SECP has outlined phased approach encouraging institutional investors to engage with Shariah-compliant brokers
  • Islamic financial institutions being urged to channel takaful, investment activities through specialized intermediaries

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) is proposing new measures aimed at strengthening the presence and operations of Shariah-compliant intermediaries within the capital market, the regulator said in a statement this week.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk bonds to replace interest-based treasury bills and investment bonds.

However, documents seen by Arab News earlier this year showed Pakistan’s government had failed to achieve a target set by the central bank to increase the share of Islamic banking deposits in the country by 50 percent by January this year.

“The paper proposes a phase-wise approach for Shariah-compliant institutional investors to route their business through Shariah-compliant brokers based on a plan to be prepared by their respective boards of directors,” the SECP said about the latest proposal. 

“The paper encourages Islamic financial institutions, including providers of Islamic window services, to utilize Shariah-compliant intermediaries for takaful and investment purposes in situations where they are not obligated to do so.”
 
Other proposed measures include creating a specific category for Shariah-compliant intermediaries for greater visibility on the Centralized Gateway Portal and a dedicated list of Shariah-compliant asset management companies on EMLAAK Financials, Pakistan’s first digital mutual fund aggregator. The platform brings together multiple Asset Management Companies (AMCs) and their mutual funds under one roof. It is a venture of ITMinds Limited, a wholly owned subsidiary of the Central Depository Company of Pakistan (CDC).

In order to facilitate Roshan Digital Account (RDA) clients, creating a separate category of Shariah-compliant intermediaries on the websites and mobile apps of Islamic banks would also be explored in coordination with relevant stakeholders, the SECP said.


Saudi Arabia opens three sports facilities to private investment

Updated 19 May 2025
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Saudi Arabia opens three sports facilities to private investment

RIYADH: Saudi Arabia has unveiled a major initiative to open up key sports venues to private sector investment, signaling a significant step forward in the Kingdom’s efforts to transform the industry.

Announced by the Ministry of Sport, the Sports Facilities Investment Project offers private investors access to three of the nation’s premier sports complexes: King Abdullah Sports City and Prince Abdullah Al-Faisal Sports City in Jeddah, and King Abdulaziz Sports City in Makkah.

Under the initiative, a range of five-year renewable contracts will be made available, the Saudi Press Agency reported. These include naming rights, leasing arrangements for non-match day use, and contracts to manage, operate, and maintain the venues.

The move supports Vision 2030, Saudi Arabia’s national strategy to diversify its economy and position the country as a global destination for sports, tourism, and entertainment.

With the 2034 FIFA World Cup on the horizon, the government is stepping up efforts to attract private capital into its burgeoning sports sector.

According to SPA, the initiative is part of “modern operational models that aim to raise facility efficiency, improve service quality, broaden commercial opportunities, and enhance the fan experience.”

Saudi Arabia’s sports industry is currently valued at $8 billion and is projected to grow to $22.4 billion by 2030, fueled by investments in sports clubs, academies, facilities, and equipment.

The government has already identified 20 high-priority investment opportunities within the sector, with a combined potential value of up to $20 billion.

Hosting the 2034 World Cup is expected to further accelerate this growth, with forecasts indicating over 10 million international visitors, 1.5 million new jobs, and an economic boost of $9 billion to $14 billion to the national GDP. The tournament will be staged across 15 stadiums in cities including Riyadh, Jeddah, Alkhobar, Abha, and the futuristic city of NEOM.

Interested investors are encouraged to submit proposals via the government’s “Furas” investment portal during the designated application period.

Officials described the project as a strategic gateway into one of the Kingdom’s most dynamic and fast-growing industries.


PIF convenes 1,000 global executives in Riyadh to shape next phase of governance

Updated 19 May 2025
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PIF convenes 1,000 global executives in Riyadh to shape next phase of governance

  • Discussions centered around redefining board impact in the national transformation
  • The Directors’ Gathering, launched in 2023, is a key pillar of PIF’s corporate excellence agenda

JEDDAH: Saudi Arabia’s Public Investment Fund gathered over 1,000 top executives in Riyadh for its second Directors’ Gathering, unveiling new governance priorities amid rapid portfolio expansion. 

The event, which brought together representatives from approximately 220 portfolio firms — including over 100 established by PIF itself — focused on enhancing board performance, aligning strategic priorities, and promoting cross-sector synergies to deepen collaboration across the fund’s growing portfolio. 

Discussions were centered around redefining board impact in the context of national transformation, strengthening oversight in a changing risk landscape, and navigating new governance challenges posed by artificial intelligence and emerging technologies, according to a press release. 

The event comes as PIF accelerates its dual mandate of advancing Saudi Arabia’s economic diversification and generating long-term global returns. Since its 2015 transformation, the fund has grown into a globally influential investor, managing $941.3 billion in assets in 2024 and playing a key role in Vision 2030. 

Speaking to the delegates, PIF Governor Yasir Al-Rumayyan, highlighted PIF’s vision and that the roles of boards include three main priorities: brainstorming and setting strategy, ensuring the right governance frameworks are in place for management, and monitoring performance, with a view to the ever-changing macro-economic context and evolving innovations. 

“He stressed that this could transform challenges into opportunities to lead, grow and innovate,” the release added. 

Al-Rumayyan also urged directors to view PIF and its 220 companies as a unified ecosystem, emphasizing the importance of leveraging the group’s collective capabilities. He added that collaboration should be considered the primary measure of success. 

The Directors’ Gathering, launched in 2023, is a key pillar of PIF’s corporate excellence agenda and serves as a platform for knowledge exchange and governance development not only within its portfolio but across Saudi Arabia’s business ecosystem. 

PIF was ranked as the world’s second most active sovereign investor by deal value in February, committing $3 billion in global transactions, according to Global SWF, a data platform tracking sovereign wealth fund activity. 

In a fireside chat titled “Aligning the Economic Vision,” Minister of Economy and Planning Faisal Al-Ibrahim, who also sits on the the sovereign wealth fund’s board, said the existence of PIF portfolio companies and the related ecosystem is in itself a form of resilience, according to a post on the fund’s official X account. 

Al-Ibrahim added: “We are transforming our economy and restructuring the Saudi economy to create more engines of growth, more drivers of progress, and a diversified set of growth sources.”   

In another fireside chat titled “Evolving Investment Strategy,” Head of the Global Capital Finance Division and Head of the Investment Strategy and Economic Insights Division at PIF, Fahad Al-Saif, said the fund is responsible for investing in assets that generate maximum economic impact for Saudi Arabia while also maximizing financial returns for the fund. 

“This is done within a robust framework, across duration for us to become a generational fund in the future,” he said in another X post by PIF. 


Closing Bell: Saudi indices close in red at 11,405 

Updated 19 May 2025
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Closing Bell: Saudi indices close in red at 11,405 

  • Parallel market Nomu dropped 155.91 points to close at 27,499.65
  • MSCI Tadawul Index decreased by 1.62 points to end at 1,454.93

RIYADH: Saudi Arabia’s Tadawul All Share Index decreased on Monday, losing 33.66 points, or 0.29 percent, to close at 11,405.28.     

The total trading turnover of the benchmark index was SR4.8 billion ($1.2 billion), as 50 stocks advanced and 191 retreated.     

The Kingdom’s parallel market, Nomu, dropped 155.91 points, or 0.56 percent, to close at 27,499.65. This comes as 27 of the listed stocks advanced while 47 retreated.     

The MSCI Tadawul Index also decreased by 1.62 points, or 0.11 percent, to close at 1,454.93.      

TASI’s top performer was Al-Baha Investment and Development Co., which surged by 6.74 percent to reach SR3.96.    

Other top performers included Saudi Printing and Packaging Co., which gained 5.14 percent to close at SR11.86, and the National Co. for Learning and Education, which rose 4.82 percent to SR156.60.  

Fawaz Abdulaziz Alhokair Co. was also among the top performers, increasing 4.40 percent to SR17.54.     

Middle East Specialized Cables Co. saw the steepest decline, with its share price easing 5.83 percent to SR31.50. 

National Gas and Industrialization Co. also saw its stock prices decline 4.71 percent to SR76.80. United Electronics Co. also dropped to SR85.90, a 4.66 percent decrease.    

Alinma Bank announced plans to issue US dollar-denominated sustainable additional Tier 1 capital certificates, following a board resolution passed on May 5, 2025, authorizing the CEO to execute the process. 

The issuance, conducted through a special purpose vehicle, will target eligible investors in Saudi Arabia and abroad. It aims to bolster the bank’s Tier 1 capital and support general banking activities.  

The final size and terms will depend on market conditions, with the transaction subject to regulatory approvals and applicable legal requirements. 

Abu Dhabi Islamic Bank PJSC, Alinma Capital, and Emirates NBD Bank PJSC have been appointed as joint lead managers for the offer. Goldman Sachs International, J.P. Morgan Securities plc, and Standard Chartered Bank will also serve in the same capacity. 

Alinma’s share price dropped 1.97 percent to settle at SR27.40.  

Separately, Saudi Ground Services Co. signed a Shariah-compliant banking facility agreement with Banque Saudi Fransi for up to SR300 million. 

Dated May 15, the flexible credit line allows the company to draw funds as needed to meet working capital requirements. 

The facility is valid through April 30, 2026, with an option to renew for one year, and is secured by a promissory note. 

Saudi Ground Services said the facility aims to boost liquidity, support working capital needs, and back its strategic growth plans. 

SGS saw a 1.03 percent drop in its share price to settle at SR48.20.  


Saudi Arabia’s PIF expands global footprint with new Paris office 

Updated 19 May 2025
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Saudi Arabia’s PIF expands global footprint with new Paris office 

  • PIF invested $84.7 billion across Europe between 2017 and 2024
  • French President Emmanuel Macron and PIF Gov. Yasir Al-Rumayyan will headline the opening ceremony

RIYADH: Saudi Arabia’s sovereign wealth fund is expanding its global presence with a new subsidiary company office in Paris.  

The Paris office marks the Public Investment Fund’s latest effort to deepen ties in Europe, following previous openings in New York, London, Hong Kong, and Beijing, underscoring the fund’s commitment to strengthening its presence in key international markets. 

This comes as PIF invested $84.7 billion across Europe between 2017 and 2024, contributing $52 billion to the continent’s gross domestic product and generating over 254,000 direct and indirect jobs. In France alone, its investments totaled $8.6 billion, adding $4.8 billion to GDP and creating 29,000 jobs. 

“PIF is an active, long-term investor in the world’s most innovative and transformational industries, businesses, and markets. This new office will enable PIF to further strengthen its partnerships in the region,” the fund said in a release. 

French President Emmanuel Macron and PIF Gov. Yasir Al-Rumayyan will headline the opening ceremony of the fund’s Paris office, coinciding with the “Choose France” summit that began on May 19 in the capital. 

The event will also draw senior officials and leading business figures, underscoring the strategic significance of PIF’s investment in France.

The 8th edition of the “Choose France” summit, held at the Palace of Versailles, is expected to secure €20 billion ($22.47 billion) in commitments across key sectors such as defense, energy, and industry, surpassing last year’s €15 billion, according to Reuters.

Ahead of the 2025 summit, €17 billion in projects were already pledged, including a €6.4 billion data center investment by US logistics firm Prologis and €1 billion from fintech Revolut for expansion.  

Other major announcements are expected from Amazon, UAE’s MGX, and rare earth firm Less Common Metals, alongside a €100 million drone factory by Portugal’s Tekever, Reuters reported. 

The PIF Tower in the King Abdullah Financial District in Riyadh stands as the tallest building. International High-Rise Award 2022/23

According to UN Trade and Development, France retained its top spot in 2024 for the sixth consecutive year, attracting 1,025 projects despite a 14 percent decline. It remained ahead of the UK with 853 projects and Germany with 608. France captured 19 percent of all foreign investment into Europe, slightly above its 18.7 percent share in 2019 — highlighting its continued appeal to investors despite global economic uncertainty.

“The addition of Paris also aligns with PIF’s strategy to drive global economies and lead the economic transformation of Saudi Arabia,” the fund added in the release. 

Since 2017, PIF has backed around 220 portfolio companies and supported the creation of 103 new firms, contributing to global economic activity and employment. The fund has generated over 1.1 million jobs worldwide and maintains a focus on forming strategic partnerships with innovative players across sectors.  

In February, the PIF ranked as the world’s second most active sovereign investor by deal value, committing $3 billion in global transactions.  

Global SWF, a data platform tracking activity in the sector, reported that the Kingdom’s PIF emerged as the most active sovereign wealth fund, completing three overseas deals through its portfolio companies.