ADNOC valued at $51bn in biggest IPO of the year so far

In today’s top stories, the UAE’s ADNOC has had the biggest IPO of the year so far, with $2bn of shares sold. As well as oil and gas, defence stocks may well be seeing major gains out of the Russian invasion of Ukraine. EV-maker Lucid Group’s share price fell after an impressive but unsensational forecast, while Tata Motors is soliciting bidders for a $1bn stake in its EV business. Lastly, Morgan Stanley is to return to the ETF market with a “multi-asset class, multi-brand and multi-jurisdiction” platform.

$50.8bn gas giant IPO

ADNOC Gas, the United Arab Emirates’ national energy company, was valued at $50.8bn in the largest IPO of the year, as $2bn-worth of shares sold out within hours. Reports emerged earlier this month that ADNOC made an adjusted EBITDA of $8.7bn in the year to October 2022, during a time when global gas prices skyrocketed following Russia’s invasion of Ukraine.

Weapons-grade gains

As well as record revenues for oil and gas firms, Russia’s ongoing invasion of Ukraine seems to be generating major gains for defence sector stocks. An MSCI sector benchmark gained 30% since October, according to the Financial Times, with Raytheon [RTX] gaining 23% over the same period, and BAE Systems [BA.L] up 26.3% since November.

Lucid share price drops on forecast

Electric vehicle (EV) maker Lucid Group’s [LCID] share price fell 11% in after-hours trading Wednesday, as 2023 production forecasts of 10,000 to 14,000 luxury EVs fell short of analysts’ expected 21,000, despite potentially doubling 2022’s total. Elsewhere, Taiwan's Delta Electronics [2308.TW], a Tesla [TSLA] supplier, predicts double-digit annual growth over the next five years, powered by the EV boom.

Investors scoped for Tata Motors $1bn equity sale

Tata Motors [TATAMOTORS.NS] is approaching potential bidders for a $1bn stake in its EV business. Weakening EV demand has pushed lithium prices in China down 30% over the past three months, with Anhui Jianghuai Automobile Group [600418.SS] exploring cheaper sodium-ion batteries. Pressure on the industry has led WM Motor Holdings to cut salaries by 30% and lay off at least 20% of staff.

ETF market return for Morgan Stanley

Morgan Stanley [MS] is entering the ETF market, building a “multi-asset class, multi-brand and multi-jurisdiction” platform, according to Anthony Rochte, the investment bank’s global head of ETFs. Having co-created, then sold, iShares – now the biggest ETF purveyor in the world, Morgan Stanley unveiled six funds under its ESG arm earlier this month to mark a return to the $9.8tn market.