Mideast IPO activity slumps at end of 2008

TAKING STOCK: The number of IPOs and the amount of capital raised in Oct/Nov 2008 slumped, compared to the same period in 2007. (Getty Images)

Initial public offering (IPO) activity in the Middle East has declined in the last two months amid the global downturn, Ernst & Young said on Sunday.

Regional IPOs in Oct–Nov 2008 raised a total of $22.4 million from three IPOs compared to $6 billion raised from 10 IPOs in the same period in 2007, according to the accounting firm’s year-end IPO Update.

“Investor confidence and willingness to list have clearly been affected by current market conditions,” said Azhar Zafar, head of Mergers & Acquisitions, Ernst & Young Middle East.

Despite the drop in listings, Zafar said, the number of companies preparing for IPOs remained “robust. “This reflects the new corporate understanding that the journey to an IPO is a transformational process,” he said.

On Sunday it was reported that Dubai-based Nakheel was in talks with investment bankers about plans to float the company in 2009.

According to the UK’s Sunday Telegraph, bankers at JP Morgan have been working on various ideas for the IPO, including a dual-listing for Nakheel on its home exchange, Nasdaq Dubai, and also in London.

During 2008, Saudi Arabia, the UAE and Egypt were the top three markets in terms of capital raised accounting for 78 percent, 10.3 percent and 4.7 percent respectively.

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM