Gulf IPOs to make comeback, says report

Deals remain small but are growing in volume, according to BMI
By Sarah Townsend
Thu 07 Sep 2017 11:57 AM

The number of initial public offerings in the GCC is rising after a flat 2016, a report has shown.

A total of 13 deals were recorded in the first half of 2017 compared to just three in the same period last year, BMI Research said.

The first quarter of this year was responsible for the lion’s share of the deals, with 10 taking place worth a combined total of $400 million.

Activity then tailed off in the ensuing quarter, with three share sales completing for a combined $171 million.

BMI attibutes this dip to the “political shockwaves caused by the diplomatic crisis in the Gulf region”.

Notably, all three of those Q2 deals took place in Saudi Arabia, on either the primary Tadawul market or the new Parallel Market for high-growth companies.

However, BMI noted that while the overall volume of deals was up, the size of deals remained relatively small. Issuers are “testing out” the IPO climate, the report concluded.

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