72.49 +0.12 (0.17%)
After hours: 4:13PM EST
|Bid||72.34 x 1400|
|Ask||72.46 x 1000|
|Day's Range||71.92 - 74.01|
|52 Week Range||27.20 - 77.76|
|Beta (5Y Monthly)||1.58|
|PE Ratio (TTM)||11.20|
|Earnings Date||Apr. 14, 2021 - Apr. 19, 2021|
|Forward Dividend & Yield||1.40 (1.89%)|
|Ex-Dividend Date||Jan. 28, 2021|
|1y Target Est||80.93|
(Bloomberg) -- Saudi Arabia replaced its central bank governor and said it would more than double the size of its sovereign wealth fund by 2025 as Crown Prince Mohammed bin Salman sets the stage for a flagship investment conference this week.Ahmed Alkholifey was removed from his position heading the monetary authority. He is being replaced by Fahad Al-Mubarak, who was central bank governor from 2011 to 2016. The reason for the change wasn’t given.The central bank and the $400 billion Public Investment Fund are set to play an increasingly important role in powering the domestic recovery as the government looks to boost an economy hit by the twin shocks of the coronavirus pandemic and low oil prices. The central bank’s mandate was recently expanded to include supporting economic growth, while the crown prince has said the wealth fund would invest $40 billion a year domestically.The moves highlight the growing role for both institutions in driving the kingdom’s future growth at a time when the budget is unable to do this anymore, said Mohamed Abu Basha, head of macroeconomic research at EFG Hermes Holding.“PIF is set to be by far the key growth engine of the kingdom in the next few years,” he said. “An active central bank, that now has within its mandate to support economic growth, can complement these efforts by focusing on financing initiatives. The success story in the housing sector is a case in point.”Al-Mubarak, the new governor, had most recently been a minister of state and served as the kingdom’s sherpa during its presidency last year of meetings of the Group of 20 industrialized economies. He was also previously chairman of Morgan Stanley’s Saudi Arabia unit.What Bloomberg Economics Says...“As the governor of a central bank with a pegged currency, the role isn’t the classic one of setting interest rates. The importance of the post is in being the custodian of the country’s foreign exchange reserves.”\-- Ziad Daoud, chief emerging-markets economistSaudi Arabia pegs its currency to the dollar and tends to move in lockstep with the U.S. Federal Reserve. The change in leadership is unlikely to affect the central bank’s policy, with most levers of decision-making in the kingdom controlled by Prince Mohammed.Saudi Arabia’s central bank has already been one of the key vehicles for providing stimulus to the economy as Covid-19 and low oil prices hobble the private sector. The monetary authority has extended over 100 billion riyals ($27 billion) to local banks in liquidity injections and to cover the costs of loan deferrals for small businesses hit by the pandemic.Lead RoleThe central bank also controls the kingdom’s reserves, which are among the largest in the world at 1.7 trillion riyals. But its historic role as manager of the country’s savings is being eclipsed by the PIF, which is chaired by the crown prince.The PIF received a $40 billion transfer from the central bank in March for new investments as it looked to capitalize on a slump in global markets caused by the onset of the coronavirus. It later disclosed it had spent about $10 billion buying stakes in blue-chip Western firms, which it sold a few months later as markets recovered.The wealth fund will host its annual investor conference within days, with the global pandemic making most of the proceedings virtual. Since its launch in 2017, the Future Investment Initiative has played host to hundreds of corporate titans including JPMorgan Chase and Co.’s Jamie Dimon and Softbank’s Masayoshi Son. The event has helped establish the fund’s reputation as a major source of international investment.In a separate announcement on Sunday, Prince Mohammed said that the sovereign wealth fund aims to manage 4 trillion riyals by 2025, making it one of the biggest government-controlled investors in the world.If the PIF reaches that goal, it would eclipse the current size of China Investment Corp. and be similar to Norway’s giant sovereign fund.(Updates with new analyst comment in paragraphs 4-5)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Kuaishou Technology, the operator of China’s most popular video service after ByteDance Ltd.’s Douyin, is seeking to raise as much as $5.4 billion in the world’s biggest internet initial public offering since Uber Technologies Inc.The short video startup, backed by Tencent Holdings Ltd., is selling 365 million shares at HK$105 to HK$115 each, according to terms of the deal obtained by Bloomberg News. The company will start taking investor orders from Monday through Jan. 29 and is slated to list on Feb. 5 in Hong Kong.Kuaishou is attempting the world’s biggest internet IPO since Uber’s $8.1 billion U.S. share sale in May 2019, according to data compiled by Bloomberg. The Chinese startup’s IPO will also give another boost to Hong Kong’s already-hot capital market and could become Asia’s largest since Budweiser Brewing Co. APAC Ltd.’s $5.8 billion float almost two years ago.Kuaishou, which means “fast hand,” is one of China’s biggest internet success stories of the past decade, part of a generation of startups that thrived with backing from Tencent. Along with TikTok parent ByteDance, the outfit co-created by Su Hua in 2013 pioneered the live streaming and bite-sized video format that’s since been adopted around the world by the likes of Facebook Inc. Kuaishou’s imminent debut could test investor appetite for its far larger rival, which was last valued at $180 billion.Tencent and IPO advisor China Renaissance Holdings Ltd. surged in Hong Kong, suggesting enthusiasm for its upcoming debut. On Monday, Kuaishou executives revealed monthly active users on its main app had reached 481.4 million while average daily time spent had crossed the 100-minute mark in 2021. Co-founder Su emphasized his company was pursuing future growth by applying its popular video formats to a range of online services like shopping.“We are exploring live-streaming in local life services and knowledge sharing,” the 38-year-old former Google engineer told investors on a conference call. “We’ll also try to use short videos and live-streaming, both based on the fan-host relationship, to transform one industry after another. That’s a driving force for our future growth.”Read more: ByteDance Seeks Funds at $180 Billion Value Before IPO of AssetsThe offering of Kuaishou has attracted 10 cornerstone investors, who agreed to subscribe for $2.45 billion of stock, based on the mid-point of the marketed range. The lineup includes The Capital Group, Temasek Holdings Pte, GIC Pte, BlackRock Inc. and Abu Dhabi Investment Authority, the terms show, confirming an earlier Bloomberg News report. The cornerstone investors have agreed to hold stock for six months in exchange for early, guaranteed allocation.The valuation of Kuaishou could more than double after its Hong Kong IPO. A top-end pricing will value the Chinese firm at $60.9 billion, up from the $28.6 billion it achieved in a funding round last year, according to Pitchbook. Even at the low end of the range, Kuaishou will still be valued at $55.6 billion.ByteDance has long been a rumored IPO candidate but was bogged down last year in fighting a U.S. ban on TikTok after the video service was labeled a national security threat. The social media giant was in discussions to raise $2 billion before listing some of its businesses in Hong Kong, Bloomberg News reported in November.Kuaishou had about 262 million average daily active users as of September, according to its prospectus. That’s still less than half the 600 million on Douyin, the Chinese version of TikTok. That said, Kuaishou’s revenues climbed 49% to 40.7 billion yuan ($6.3 billion) in the first nine months of last year, after it ratcheted up monetization efforts through advertising and e-commerce. While it offers free access to its main platform, the startup takes a cut of the tips users give to their favorite live-streamers who perform viral challenges, lip-synch to the latest pop songs and play video games.Tencent has about a 21.6% stake in Kuaishou, and other backers include venture capital firms DCM, DST Global and Sequoia Capital China, the prospectus shows. Shares in Tencent jumped 11% and closed at an all-time high on Monday in Hong Kong.Morgan Stanley, Bank of America Corp. and China Renaissance are joint sponsors of the deal.(Updates Tencent’s shares to closing level in 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Southeast Asian ride-hailing giant Grab Holdings Inc. has picked banks for a potential U.S. initial public offering, that could raise at least $2 billion, according to people familiar with the matter.Morgan Stanley and JPMorgan Chase & Co. have been selected to work on a listing that could happen as soon as the second half of this year, the people said. More banks could be added and details of the offering could change as deliberations continue, said the people, who asked not to be identified as the information is private.Grab’s IPO considerations come after talks to combine with Indonesian rival Gojek stalled. The latter startup is now in advanced discussions to merge with local e-commerce pioneer PT Tokopedia instead, creating a powerful regional player in online services that may then seek to go public, Bloomberg News reported this month. A Gojek-Tokopedia tie-up could create a Southeast Asian powerhouse with a valuation of about $18 billion and businesses encompassing ride-hailing and payments to online shopping and grocery delivery.Read more: Gojek Is Said in Talks With Tokopedia for $18 Billion MergerThat could threaten Grab’s own effort to expand across the region, particularly in the largest market of Indonesia. The Singapore-based company backed by SoftBank Group Corp.. grew net revenue 70% in 2020 after bouncing back from a Covid-19 trough. The startup, which was last valued at more than $14 billion, is now angling to delve deeper into online finance and food delivery.Representatives for Grab, Morgan Stanley and JPMorgan declined to comment.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.