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Mesaieed Petrochemical Surges 400% on First Trading Day in Qatar
A staggering trading day for Qatar’s Mesaieed Petrochemicals points toward serious expectations for the company. The trading price rose 400% in a single day, immediately after it had completed Qatar’s largest IPO in five years.
Mesaieed Petrochemical Holding rose more than five fold on its first day of trading after completing the country’s biggest initial public offering in five years.
The shares closed at 55 riyals after opening at 10 riyals on the Qatar Exchange. The stock rose as high as 73.9 riyals during the day.
State-run energy company Qatar Petroleum raised 3.2 billion riyals ($880 million) by selling a 26 percent stake in Mesaieed to Qatari nationals last month. The share sale is the nation’s biggest since Vodafone Qatar raised $1 billion in 2009, and the largest first-day gain for an IPO in the Middle East and Africa since 2009 when Saudi Arabia’s Ace Arabia Cooperative Insurance Co. (ACE) sold shares, according to data compiled by Bloomberg.
“The IPO was at 10 riyals which is a significant discount to what this company is worth,” Bobby Sarkar, head of research at Qatar National Bank Financial Services, said in a phone interview. “This is a solid petrochemical, QP-backed company.”
Mesaieed was formed in September and owns Qatar Chemical Co., Qatar Chemical Co. II and Qatar Vinyl. The government valued the company at 12 billion riyals for the IPO, below an initial valuation of 16.7 billion riyals, Finance Minister Ali Al Emadi said last month. Foreigners are allowed to trade in the company’s shares once they have been listed.
Mesaieed is the first company to be listed on the country’s bourse since MSCI Inc. (MSCI) agreed to upgrade Qatar to emerging-market status in June. It raises to 43 the number of companies traded on the Qatar Exchange, Chief Executive Officer Rashid al Mansoori said in an interview in Doha today.
By Robert Tuttle of Bloomberg
The full article is visible via the link below – Pankaj Oswal
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Saudi looking to boost re-exports through Dubai
The Kingdom of Saudi Arabia is reported to be working toward further expanding trade links with the UAE, which has proven a fruitful re-export destination. We shouldn’t be surprised to see an even more robust relationship in coming years, even though 45% of Saudi exports already either go to or through the Emirates.
Dubai: The Kingdom of Saudi Arabia is looking to explore new markets through the gateway of Dubai, Ahmad Hakbani, Secretary General of Saudi Export Development Authority, told Gulf News on Sunday.
“The main role of our authority is to ease Saudis’ businesses by supporting their industries and enhance their presence in the international markets,” he said. “And Dubai is an ideal gateway to achieve this target since it is a very popular re-export destination in the region.”
Saudi Arabia’s exports stood at Dh190 billion last year. Forty-five per cent of it goes either to or through the UAE.
The government of Saudi Arabia is also putting more efforts to boost trade between the two countries and take advantage of the strong trade environment in Dubai, Hakbani added without disclosing additional details.
“Authorities expanded the industrial area in Saudi by 300 per cent last year expecting Saudi’s industries to grow further in the region and internationally,” he said.
Saudi’s non-oil exports make up the petrochemical industry, which include downstream plastic production, building materials and food, he said.
While Saudi’s petrochemical industry achieved a steady growth of 20 per cent in the last five years, authorities are very optimistic of further growth in the coming years.
Satish Khanna, General Manager of Al Fajer Information and Services, said that currently Saudi’s share of petrochemical exports is estimated at 17 per cent worldwide, while it represents 70 per cent of the GCC’s overall petrochemical exports.
Saudi’s petrochemical exports are expected to reach 100 million tones by 2016, a 250 per cent increase comparing to 2006, Khanna said.
By Zaher Bitar
The full article is visible via the link below – Pankaj Oswal
http://gulfnews.com/business/economy/saudi-looking-to-boost-re-exports-through-dubai-1.1295164
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China’s Sinopec cuts domestic polyethylene prices amid high inventories
Sinopec has cut its polyethylene offers this week in a move that could lead market trends.
Major Chinese petrochemical producer Sinopec Corp cut its polyethylene offers by Yuan 100-500/mt ($16-83/mt) this week, amid pressure from mounting stocks, a company source said Wednesday.
In eastern China, Sinopec trimmed its high density polyethylene offers by Yuan 100/mt to Yuan 12,100/mt ex-works basis, slashed its linear low density PE offers by Yuan 350/mt to Yuan 10,850/mt and cut its low density PE offers by Yuan 500/mt to Yuan 11,800/mt, ex-works basis.
Downstream demand had improved marginally after the Lunar New Year holidays but combined stocks held by local producers including Sinopec and PetroChina were hovering at exceptionally high levels of 1.1 million-1.2 million mt, compared with 800,000 mt in the same period last year.
The local producer was considering a cut in run rates at its production sites across China, but had not yet reached a decision on the matter, the source added.
–Michelle Ho, Michelle.ho@platts.com
–Edited by E Shailaja Nair, shailaja.nair@platts.com
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Pankaj Oswal 