HONG KONG: Tencent’s e-book unit China Literature saw its shares double in their debut on Wednesday as Hong Kong investors embrace a rush of tech listings, with the stock on track to mark the biggest first-day pop for a large IPO globally this year.
The company’s stunning debut has shown that Hong Kong has raised its game as it strives to compete with the New York and Nasdaq exchanges which have been the more traditional home for Chinese tech IPOs seeking to attract international investors.
China Literature’s shares rose to as much as HK$110 (SR52.75) in early trade, compared to its offering price of HK$55 per share, giving it a market value of nearly $13 billion. The shares eased to HK$100 in early afternoon trade.
“As the first Tencent-controlled subsidiary tapping capital markets, China Literature has to perform well in the secondary market to set a good example for other Tencent units,” said an institutional investor who took part in the IPO, declining to be identified as he was not authorized to speak to the media.
But while many investors cheered the stock on, others noted that Wednesday’s valuations for the Tencent Holdings unit were stretched.
Company executives project net profit of 400 million yuan (SR226.18 million) for 2017 and 1 billion yuan for 2018, according to investors who attended IPO roadshow meetings.
That implies China Literature is trading at 201 times its forecast 2017 earnings and 80 times its 2018 projections. By contrast, Tencent is trading at 51 times its 2017 forecast profits.
Co-CEO Liang Xiaodong told reporters after the opening bell ceremony that the stock’s surge was a pleasant surprise.
“Going forward, we will conduct M&As and forge strategic alliances ...in a bid to stay ahead in our industry,” he said.
China’s biggest e-book platform offers 9.6 million literary works from 6.4 million authors. Tencent began e-book publishing in 2004 and after an internal reorganization, formed China Literature in 2013.
Demand for the IPO, which raised $1.1 billion, was such that retail investors bid for 625 times the shares on offer — tying up HK$521 billion ($67 billion), equivalent to a fifth of Hong Kong’s cash in circulation, as they waited to see whether their offers would be accepted.
A closing gain of more than 44 percent would make it the best-performing debut this year worldwide by any company raising more than $500 million, according to Thomson Reuters data.
Its IPO success comes as the number of tech offerings in Hong Kong is picking up. Online insurance group ZhongAn raised $1.5 billion in September in Asia’s biggest-ever financial technology IPO. Its shares jumped 18 percent in their debut.
Razer, a gaming hardware maker backed by Hong Kong billionaire Li Ka-shing as well as Intel, will make its Hong Kong debut next Monday. It has priced its HK$4.12 billion IPO near the top end of its price range, IFR reported on Tuesday.
“(ZhongAn) gave people size and returns, so retail and high net worth individuals got excited. And that is being reflected in China Literature and Razer,” said one banker involved in the China Literature deal, also declining to be identified.
But even so, for many Chinese tech firms, the US market remains more attractive.
Sogou, China’s second-largest search engine and around 45 percent owned by Tencent, is due to list on Thursday after pricing an up to $585 million IPO on Wednesday.
Tencent owns 62 percent of China Literature, while Carlyle Group holds 12.2 percent. A further 6 percent is owned by Trustbridge Partners, which was founded by Shujun Li, the former CFO of Shanda Interactive.
Tencent’s China Literature in stellar debut as HK investors rush in
Tencent’s China Literature in stellar debut as HK investors rush in
Pakistan Stock Exchange crosses 96,000 to hit record intraday high
- Higher remittances, exports, foreign investment credited for bullish activity, analysts say
- Stock Exchange witnessing bullish trend since government slashed policy rate this month
ISLAMABAD: The Pakistan Stock Exchange on Tuesday surged past 96,000 points to hit a record high in intraday trading, with analysts attributing the rally to a current account surplus in October due to higher remittances, exports and foreign direct investment.
The benchmark KSE-100 index climbed to a record 935.66 points or 0.98 percent to stand at 95,931.33 from the previous close of 94,995.67 points. It touched the 96,036.48 mark for the first time at 2:44pm PST.
Ahsan Mehanti at the Arif Habib Corporation told Arab News potential investors had weighed surging foreign reserves as well as government decisions over reforms for loss-making state-owned enterprises, independent power producers and energy pricing.
“Stocks bullish on reports of current account surplus of $349 million in Oct. 2024 on higher remittances, exports and FDI rising by 32pc to $904m for Jul-Oct. 2024,” he said. “The next triggers could be easing political noise amid protest calls by opposition.”
Pakistan’s external current account recorded a surplus of $349 million in October 2024, marking the third consecutive month of surplus and the highest in this period. The current account reflects a nation’s transactions with the world, encompassing net trade in goods and services, net earnings on cross-border investments and net transfer payments.
A surplus indicates that a country is exporting more than it is importing, thereby strengthening its foreign exchange reserves.
A bullish trend has been observed at the stock market since Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent earlier this month. It’s economic indicators have also steadily improved since securing a 37-month, $7 billion bailout from the International Monetary Fund (IMF) in September.
Before this, the country went through a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.
Last year, Pakistan narrowly avoided a sovereign default by clinching a last-gasp $3 billion IMF bailout deal.
Saudi Arabia’s National Housing Co. launches 11 residential projects in Riyadh’s Khuzam area
JEDDAH: Saudi Arabia’s National Housing Co. has launched 11 projects in Riyadh’s Khuzam area, offering over 10,000 units to meet growing demand for quality housing in the Kingdom.
These developments, including modern designs, are part of NHC’s strategic push to diversify housing supply and address the varied needs of Saudi families.
The projects range from luxurious villas to contemporary apartments, catering to different client needs, according to a press release.
These include Khuzam Park Residence, with units up to 379 sq. meters, and Tala Khuzam, offering units as large as 430 sq. meters. Additionally, the Tala Khuzam project features units as small as 219 sq. meters.
NHC, one of the leading developers of suburban and residential areas in Saudi Arabia, plays an important role in the real estate sector, focusing on improving quality of life and expanding housing supply across the Kingdom.
These efforts are aligned with Vision 2030, which aims to raise homeownership among Saudi families to 70 percent.
The company also announced the Eyal Khuzam project which offers luxury units up to 796 sq. meters, while Jawharat Khuzam 1 boasts units up to 929 sq. meters. The Nafah project offers units up to 600 sq. meters.
Within the Regan compound, which was unveiled at the Cityscape exhibition earlier this month, NHC introduced Rasin Rejan Hills and Ewan Rejan projects, with residential units up to 435 sq. meters. The company said both developments feature high privacy, 24/7 security, and are positioned as ideal living spaces in Khuzam.
Additionally, NHC launched the Azyan Khuzam project, offering units from 200 to 471 sq. meters, and the Jadaya project, with units up to 538 sq. meters. The Ewan Khuzam project includes villas of up to 594 sq. meters.
NHC emphasizes its commitment to maintaining quality standards with thoughtful designs and well-integrated infrastructure, including educational, health care, sports, cultural, and commercial amenities, as well as green spaces.
Over the course of the four-day Cityscape exhibition, NHC signed more than 38 agreements worth over SR5 billion ($1.33 billion) in the supply chain sector.
These agreements, which involve both local and international companies, cover various areas including logistics services, securing essential materials, and localizing industries within the sector.
COP29: Developing countries urge action on climate finance deal
RIYADH: Measures available to manage the rising global temperature are not sufficient, a leading Thai official has told the UN’s climate change conference in Baku.
Speaking at COP29 in Azerbaijan, the Asian country’s Minister of Natural Resources and the Environment, Chalermchai Sri-on, called for decisions to be made on climate financing to help those nations most affected by rising temperatures.
His comments were echoed by other ministers throughout the morning session, which came a day after the UN’s climate chief Simon Stiel told world leaders to “cut the theatrics and get down to business” with regards to agreeing a funding deal for developing countries.
Addressing delegates, Sri-on said: “The first global stocktake significantly showed that our current efforts are still insufficient to control global temperature increase.”
Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, urged developed nations to fulfill their financial responsibilities, ensuring funds are “accessible and impactful.”
Romania’s Minister of the Environment, Waters and Forests, Costel Alexe, called for prioritizing action over political differences, stating: “Failure is not an option for anyone.”
He also emphasized Romania’s focus on private-sector partnerships for decarbonization in energy, transport, and industry.
Diego Pacheco of Bolivia pointed to the responsibility of developed nations, stating: “Our countries are suffering the impacts of climate change, due largely to the historical emissions of developed countries.”
Sophalleth Eang, Cambodia’s minister of environment, reaffirmed Cambodia’s ambitious climate targets, including carbon neutrality by 2050, as outlined in its 2020 updated nationally determined contributions.
Franz Tattenbach, Costa Rica’s minister of environment and energy, expressed optimism in the ripple effects of decarbonization, saying: “We are an ambitious country, and we hope to scale up our ambition. We believe that decarbonization could lead to decarbonization in other countries.”
Austria’s Leonore Gewessler highlighted the need for urgent united action, saying: “It is our collective responsibility to make more progress without further delay.”
Additional leaders addressed the challenges of achieving meaningful climate goals amid global crises.
Burkina Faso’s Roger Baro urged for substantial commitments to protect the environment and develop resilient economies, while Celine Caron-Dagioni of Monaco called for updated contributions aligned with long-term climate goals.
Namibia’s Pohamba Penomwenyo Shifeta stressed the importance of balanced climate financing.
Speakers also showcased national achievements and initiatives. Uruguay’s Robert Bouvier Torterolo highlighted the country’s renewable energy success, with over 95 percent of its electricity derived from sustainable sources. Senegal’s Daouda Ngom emphasized the need for accessible financing to support adaptation plans.
Nigeria’s Balarabe Abbas Lawal detailed investments in renewable energy and afforestation, while Rwanda’s Valentine Uwamariya highlighted the significant economic cost of climate change to her nation and called for “ambitious, balanced, fair, and just outcomes” from the climate change forum.
Jordan wholesale trade price index increases 1.3% in first 9 months of 2024
RIYADH: Jordan’s wholesale trade price index increased by 1.31 percent year-on-year during the first nine months of 2024, driven primarily by higher prices for goods such as agricultural raw materials and tobacco, according to the country’s Department of Statistics.
The index reached 107.97 points, up from 106.40 points in the same period of 2023.
The largest contributor to the increase was the agricultural raw materials, grains, food, beverages, and tobacco category, which saw a rise of 3.35 percent. This was followed by a 1.47 percent increase in the fuel, metals, construction materials, and supplies group.
Other sectors showed more modest growth, including a 0.21 percent rise in machinery, equipment, and supplies, a 0.14 percent increase in textiles, clothing, personal, and household goods, and a slight 0.04 percent increase in motor vehicles, parts, and motorcycles.
In the third quarter of 2024, the wholesale trade price index rose by 1.41 percent year on year, reaching 107.97 points compared to 106.47 points during the same period in 2023.
The rise was driven mainly by a 3.16 percent increase in the agricultural raw materials, grains, food, beverages, and tobacco group, as well as a 2.48 percent rise in the fuel, metals, and construction materials group. Prices for textiles, clothing, personal, and household goods rose by 0.62 percent, while motor vehicles, parts, and motorcycles saw a 0.28 percent decline.
Machinery, equipment, and supplies prices decreased by 0.64 percent. On a quarterly basis, the index increased by 0.11 percent compared to the previous quarter, with the largest gains seen in agricultural raw materials (up 0.82 percent) and textiles, clothing, personal, and household goods (up 0.18 percent).
Jordan’s inflation this year has been shaped by both domestic and global factors. From January to October, the consumer price index rose by 1.56 percent, reaching 110.58 points compared to 108.88 points during the same period in 2023. Key contributors to inflation included an 11.6 percent surge in personal item prices, a 7.34 percent increase in water and sanitation services, as well as higher costs in union dues, rental prices, and tobacco products.
The industrial sector also played a role in driving inflation, with Jordan’s industrial production index rising by 0.48 percent through September. This increase was led by strong growth in the mining sector (up 8.34 percent) and electricity production (up 5.41 percent), while manufacturing output declined by 0.28 percent.
External factors, such as rising global food and energy prices, regional instability, and changes to subsidies and taxes, have contributed to price volatility, affecting wholesale trade and broader economic trends in Jordan.
Tourism, which accounts for about 12 percent of the country’s gross domestic product, has been particularly hard hit by regional conflicts. A report by Reuters noted that visitor numbers to popular sites like Petra have dropped dramatically, from around 4,000 per day to just 400.
Princess Haifa urges Saudi youth to embrace technology and innovation at Misk Forum
RIYADH: Saudi Arabia has created an environment that empowers its young generation to realize their ambitions through the Vision 2030 program, according to the Kingdom’s vice minister of tourism.
Speaking at the Misk Global Forum in Riyadh, Princess Haifa bint Mohammed Al-Saud, urged the Saudi youth to master new technologies and rely on credible sources of information.
She emphasized the importance of staying well-informed and stressed that success requires patience and perseverance, the Saudi Press Agency reported.
Saudi Arabia’s Vision 2030 initiative is one of the most ambitious plans to transform the Kingdom and prepare it for the future. One of the key goals outlined in the program is empowering the youth by providing them with job opportunities and access to technology.
“Nothing is impossible in Saudi Arabia. We are fortunate that Saudi Arabia has proven that progress and development are achievable,” said Princess Haifa.
She added that the Kingdom’s transformative journey is unprecedented, both regionally and internationally.
Saudi Arabia’s job creation efforts are showing positive results, with the latest report from the General Authority for Statistics revealing that the unemployment rate among Saudi nationals has fallen to 7.1 percent.
This marks a 0.5 percentage point decrease from the previous quarter and a 1.4 percentage point drop compared to the same period last year.
The report also highlighted a significant improvement in the unemployment rate among Saudi women, which saw a sharp quarterly decline of 1.4 percentage points, reaching 12.8 percent by the end of the second quarter.
The eighth edition of the Misk Global Forum, held under the theme “By Youth for Youth,” began in Riyadh on Nov. 18. The two-day event brought together young leaders from the Kingdom and around the world, creating a platform for dialogue and collaboration.
The Misk Foundation, a nonprofit organization established in 2011 by Crown Prince Mohammed bin Salman, plays a key role in fostering the young generation in Saudi Arabia by developing an environment conducive to creativity and innovation through initiatives such as Misk City, Misk Art Institute, Manga Productions, the Science Center, and Misk Schools.
In September, Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb announced that the Kingdom is allocating substantial funds to boost the tourism industry and create jobs, especially for young people and women.
In August, a report by professional services firm PwC revealed that countries in the Middle East, including Saudi Arabia, are undergoing rapid transformation, driven by a growing youth population eager to embrace change and innovation.
The report also highlighted that the young generation in Saudi Arabia is increasingly aware of sustainable development goals and noted that organizations like the Misk Foundation are supporting the youth through a wide range of initiatives across sectors including education, innovation, arts, and culture.
