SINGAPORE/MANILA: Philippines’ Converge ICT Solutions Inc. plans to raise as much as $680 million in an initial public offering that would be the country’s largest ever, sources said on Monday, encouraged by a coronavirus-spurred boom in demand for fiber broadband.
Converge joins a host of Southeast Asian companies planning listings, including Thailand Siam Cement Group Packaging’s $1.5 billion IPO, signaling a revival in investor interest in region’s underperforming markets.
The Internet provider, which is banking on continued higher demand for online services as people study and work at home during the pandemic, has set the sale price at $0.3406 to $0.3922 per share, sources with direct knowledge of the issue said.
At the upper end, the IPO of up to 1.73 billion shares could raise as much as $678.6 million, including the over-subscription option. That would surpass the $627 million raised by Robinsons Retail Holdings Inc. in 2013.
“There’s quite a lot of excitement as this is one of the highest growth stories coming out of the Philippines,” said one source.
Seven cornerstone investors have committed to purchasing shares, including a Canadian pension fund, said the sources, who declined to be identified as they were not authorized to speak to media.
Converge, which lists US private equity firm Warburg Pincus as a minority shareholder, declined to comment.
The Philippines’ benchmark stock index has declined 24 percent so far this year, while Thailand’s has lost 21 percent.
However, the value of Southeast Asian IPOs is at $4.6 billion over the same period, up from $3.1 billion a year ago, Refinitiv data shows, mainly due to $3 billion raised by Thailand’s Central Retail in February.
Morgan Stanley and UBS are global coordinators for the Converge IPO, with BPI Capital and BDO Capital joint local underwriters. The final price is due to be announced on Oct. 9, with the offer period of Oct. 13 to 19.
Converge ICT targets Philippines biggest IPO amid regional market revival
https://arab.news/rhnq8
Converge ICT targets Philippines biggest IPO amid regional market revival
- Converge joins a host of Southeast Asian companies planning listings
- Seven cornerstone investors have committed to purchasing shares, including a Canadian pension fund
Closing Bell: Saudi main index closes in green at 11,532
RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for the second consecutive day, gaining 43.62 points, or 0.38 percent, to close at 11,532.27.
The total trading turnover of the benchmark index reached SR5.37 billion ($1.43 billion), with 120 listed stocks advancing and 121 declining.
The Kingdom’s parallel market Nomu also closed higher, rising 585.86 points to end at 27,928.99.
Meanwhile, the MSCI Tadawul Index edged up 0.41 percent to close at 1,474.55.
The best-performing stock on the main market was Saudi Arabia Refineries Co., whose share price jumped 9.85 percent to SR65.80.
Zamil Industrial Investment Co. also saw gains, with its stock rising 7.73 percent to SR47.40.
ARTEX Industrial Investment Co. recorded a 4.35 percent increase, closing at SR13.44.
On the other hand, Gulf General Cooperative Insurance Co. saw its share price decline by 6.45 percent to SR7.11, making it one of the worst performers of the day.
On the announcements front, Al-Babtain Power and Telecommunication Co. reported a net profit of SR88.2 million for the first quarter of 2025, a 6.77 percent increase compared to the same period last year. The company attributed the rise to improved productivity, cost reductions, and stronger profit margins. Its share price rose 1.45 percent to SR49.
Tabuk Cement Co. posted a 28.35 percent year-on-year decline in net profit for the first quarter, reaching SR13.04 million. In a statement to Tadawul, the company cited a decrease in sales and other income as the primary reasons for the drop. Its stock fell 0.50 percent to SR11.90.
Riyadh Cement Co. reported a net profit of SR75.68 million for the first quarter, up 7.95 percent from the same period a year earlier, driven by increased sales volume and higher average selling prices. Its share price rose 0.45 percent to SR33.35.
Arabian Drilling saw its net profit plunge 48.63 percent year on year to SR75 million in the first quarter. Its stock declined 1.78 percent to SR82.90.
Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, reported a net profit of SR1.8 million for the first quarter, reversing a net loss of SR151.7 million in the same period last year. The company credited favorable seasonal dynamics and a continued focus on operational efficiency for the turnaround. Cenomi Retail’s share price rose 2.71 percent to SR15.94.
Al-Jouf Agricultural Development Co. reported a net profit of SR34.65 million in the first quarter, up 5.26 percent year on year. Its share price increased 1.76 percent to SR49.15.
Aramco to sign MoUs with NextDecade and Sempra, CEO says
RIYADH: Saudi oil giant Aramco will sign on Tuesday memoranda of understanding with US liquefied natural gas producer NextDecade and utility firm Sempra , Aramco’s CEO Amin Nasser told the US-Saudi Investment Forum.
- This is a breaking news story, and updates will follow
SMEs account for 30% of listed companies in Saudi Arabia: CMA chief
JEDDAH: Small and medium enterprises now constitute 30 percent of listed companies in Saudi Arabia, following significant efforts by the Capital Market Authority to streamline the listing process and enhance the parallel market, according to CMA Chairman Mohammed El-Kuwaiz.
Speaking during “Finance Week” at the SME Support Council — an event organized by the Small and Medium Enterprises General Authority, also known as Monsha’at — El-Kuwaiz underscored the regulator’s commitment to broadening financing options and encouraging more SMEs to enter the capital market.
According to the Saudi Press Agency, El-Kuwaiz highlighted the 2017 launch of the parallel market, Nomu, as a major milestone in expanding access for smaller firms. Since then, 14 companies have successfully moved from Nomu to the main market, underscoring the strength of the investment ecosystem.
The Kingdom is targeting a 35 percent contribution from the SME sector to its gross domestic product by 2030, in line with the Vision 2030 economic diversification plan.
El-Kuwaiz noted that the Nomu index has grown tenfold since its inception, with market capitalization soaring 26 times to nearly SR60 billion ($16 billion) by the end of 2024. Liquidity has also surged, with trading values reaching approximately SR14 billion this year — an eightfold increase.
To further ease capital market access, the CMA has introduced a suite of new tools, including direct listings and regulatory simplifications, in collaboration with strategic partners. As a result, companies now have access to nine distinct financing options, most of which were developed in recent years.
The CMA chief also pointed to the rapid growth of the fintech sector within capital markets, with revenues more than doubling — up 105 percent compared to 2023.
He emphasized the growing importance of credit ratings and evaluations in securing financing, particularly through debt instruments, which are increasingly vital for fostering sustainable growth in the financial sector.
Jordan’s industrial index rises 2.73% in Q1 2025: official data
RIYADH: Jordan’s industrial production index climbed 2.73 percent year on year in the first quarter of 2025, reaching 87.62 points, driven by robust growth in manufacturing and electricity output, according to data released by the Department of Statistics.
Manufacturing production rose 3.2 percent during the first three months of the year, while electricity output increased 4.97 percent, the Jordan News Agency, Petra, reported. However, the extractive industries sector declined by 8.03 percent over the same period.
The rise in industrial activity comes as Jordan’s inflation rate accelerated by 2.21 percent annually during the first two months of 2025, fueled by rising prices in several key commodity groups.
The upward trend in the index was also reflected in January’s figures, which showed a 2.76 percent annual increase to 88 points.
In March alone, the industrial index grew by 1.73 percent year on year, reaching 87.62 points compared to 86.13 points in March 2024. Petra noted this growth was supported by a 3.38 percent increase in manufacturing and a 4.02 percent rise in electricity production, despite a sharp 23.89 percent decline in extractive industries.
Month on month, the index rose 0.44 percent from February to March, increasing from 87.24 to 87.62 points. During this period, the extractive sector rebounded with a 9.96 percent increase, while manufacturing inched up 0.41 percent. The electricity sector, however, contracted by 7.18 percent.
Meanwhile, Fitch Ratings earlier this month affirmed Jordan’s long-term foreign currency issuer default rating at “BB-” with a stable outlook, citing macroeconomic stability and ongoing fiscal and economic reforms.
The US-based agency highlighted Jordan’s resilient financing environment, supported by a well-capitalized banking sector, a robust public pension fund, and sustained international assistance.
Despite the stable outlook, Jordan’s credit rating remains lower than several of its regional peers. In February, Fitch reaffirmed Saudi Arabia’s rating at “A+” with a stable outlook and the UAE’s at “AA-.”
A “BB” rating indicates a higher vulnerability to default risk in the event of unfavorable economic or business conditions, although some financial flexibility remains.
Egypt’s exports surge by 24% in February amid trade shifts
RIYADH: Egypt’s exports rose by 24.1 percent year on year in February to reach $4.43 billion, driven by increased shipments of key commodities.
The surge comes amid other economic indicators improving, highlighting the country’s developing financial landscape.
The latest monthly trade report released by the Central Agency for Public Mobilization and Statistics, known as CAPMAS, explained that the growth in exports was driven by an increase in ready-made garments, which rose by 30.6 percent, and petroleum products, which increased by 12.2 percent.
Moreover, processed foods grew by 9.3 percent, and primary plastic products saw a 3.4 percent rise.
Egypt’s export growth comes as the Middle East and North Africa region navigates shifting global trade dynamics in 2025, with the impact of recent tariff measures and geopolitical tensions reshaping commercial flows worldwide.
Egypt’s overall trade balance recorded a deficit of $2.33 billion, marking a 29.1 percent decline from February 2024, when the deficit stood at $3.28 billion.
In the second month of this year, imports saw a 1.4 percent decline to $6.67 billion, down from $6.85 billion in the same period of 2024, due to the rise in prices of some imported goods.
Sector highlights
While some goods, including fresh fruits, fertilizers, potatoes, and iron products, saw declines, the surge in manufactured and petroleum goods bolstered the overall export figures.
Reduced purchases of wheat, raw iron and steel materials, pharmaceuticals, and primary plastics contributed to the import decline. Conversely, imports of petroleum products, natural gas, corn, and soybeans rose sharply.
Adding to the economic momentum, remittances from Egyptians working abroad surged to a record $32.6 billion in the 12 months through February, marking a 72.4 percent increase from the previous year.
The North African country’s net foreign assets also rose by $1.48 billion in February, reaching $10.18 billion, supported by increased foreign investment in treasury bills.
In a meeting with the National Press Authority in January, Rania Al-Mashat, the minister of planning and economic development, said that the economy is projected to grow by 4 percent this fiscal year, bolstered by structural reforms and a record $46.1 billion in foreign direct investment in 2023/2024.
The government is pursuing $4.2 billion in macroeconomic support from global partners, with negotiations underway for an additional $4.10 billion in EU budget aid.
