MUMBAI, Jan 11 (Reuters Breakingviews) – Signs of deepening ties between Asia and the oil-rich Gulf are growing and fast. The latest example is a planned dual listing between Saudi Arabia and Singapore this year for Olam Agri, a grain and seed trader.
Earlier this month, First Abu Dhabi Bank (FAB.AD) announced it was considering a $24 billion bid for Standard Chartered (STAN.L) (2888.HK) – a sign of its big appetite for an engagement in Asia. The UK-listed lender and Olam Agri are both backed by Singapore-based Temasek. Elsewhere, exchange operator Hong Kong Exchanges and Clearing (0388.HK) is looking for Middle Eastern companies and investors awash with petrodollars to shore up future growth. It’s an increasingly symbiotic relationship.
Olam Agri’s IPO, which Reuters says could be worth as much as $1 billion, follows the sale of 35% of itself to a unit of the Saudi Public Investment Fund. This deal crystallizes a valuation of the company at 76% of its parent, $4.6 billion commodities trader Olam Group (OLAG.SI), while the kingdom bolsters its food security and sleepy, highly valued capital market.
Corporate and financial movements underscore how, as Olam’s co-founder and chief executive Sunny Verghese puts it, the global PIN code is changing. Given population trends, the Russia-Ukraine war, and divisive geopolitics, expect the Gulf and Asia to get cozier. (By Una Galani)
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Edited by Robyn Mak and Katrina Hamlin
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