Dec 14 (Reuters) – Barclays (BARC.L) is exploring a return to Saudi Arabia in a bid to seize a slice of the nation’s burgeoning capital markets, two folks near the matter advised Reuters.
The British financial institution is taking a look at securing a license within the kingdom to have the ability to handle offers together with preliminary public choices (IPOs), the folks stated, talking on the situation of anonymity.
They added the deliberations have been at an early stage and no closing resolution has been made.
Barclays declined to remark whereas a consultant for Saudi Arabia’s Capital Markets Authority didn’t reply to a request for remark.
The financial institution gave up its Saudi licenses in 2014 amid a worldwide retreat of its funding banking operations underneath then-chief govt Antony Jenkins.
The financial institution is authorised to function within the Dubai Monetary Centre and Qatar, however in its newest annual strategic report it stated it aimed to “selectively develop” its funding banking presence within the Center East.
Barclays earned about 70% of 2021 pre-tax revenue from company and funding banking actions, together with buying and selling, advisory and transaction banking.
The Center East has been a brilliant spot of exercise in an in any other case gloomy 12 months for fairness capital markets. Corporations have raised some $21.9 billion by means of IPOs within the space in 2022, greater than half the overall for the broader EMEA area, which additionally consists of Europe and Africa, based on Dealogic information.
Particularly, Saudi Arabia has witnessed a string of IPOs amid a government-led privatisation programme that has additionally seen state entities shed a few of their holdings in listed companies, encouraging native firms and household companies to go public.
On Dec. 11, oil refiner Luberef priced its $1.3 billion share supply on the prime of the preliminary worth vary on the again of robust investor demand.
The next day, restaurant operator Americana started buying and selling on the Riyadh and Abu Dhabi bourses after a profitable $1.8 billion twin itemizing.
In 2021, Barclays ranked among the many prime 10 bookrunners of share gross sales worldwide, based on Dealogic information compiled by the Wall Road Journal.
Its newest quarterly report confirmed a greater than 80% drop in fairness capital markets earnings within the first 9 months of 2022 from the identical interval final 12 months amid a worldwide drop in IPO issuance.
Reporting by Pablo Mayo Cerqueiro and Hadeel Al Sayegh
Enhancing by Tomasz Janowski
: .