MidEast IPO value up twentyfold in Q1

  • Share via facebook
  • Tweet this
  • Bookmark and Share

The value of initial public offerings (IPOs) on Middle East bourses increased by twentyfold in Q1 2013, compared to the year ago quarter, according to a report by Ernst & Young.

During the first three months, regional capital markets recorded $1.6bn in proceeds from three IPOs, up from $339.8m across four IPOs in the first quarter of 2012.

The vast majority of these proceeds came from Asiacell Communications’ $1.3bn listening on the Baghdad bourse this year. The other deals were both from Saudi Arabia, with Northern Region Cement Company raising $240m and National Medical Care Company floating for $97.2m.

“The majority of the value is attributed to a large ticket telecommunications IPO in Iraq,” commented Phil Gandier, MENA head of transaction advisory services, Ernst & Young.

“This sector is traditionally associated with large value transactions and the high Q1 performance will be sustainable if we start to see similar large value transactions on a regular basis which would bolster the regions capital markets."

IPO activity in the UAE, home to three stock exchanges, has been muted since the financial crisis hit in 2008-2009. The last offering in the Gulf state was contractor Drake & Scull International which floated in mid-2008.

A spokesperson for KPMG in February told Arabian Business that at least five Gulf-based companies were preparing stock market flotations for 2014, including one worth nearly $1bn.

Dubai-based developer DAMAC Properties is said to be currently mulling a regional offering.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Danger zone: what would the wider impact of a slowdown in China have on the Gulf?

Danger zone: what would the wider impact of a slowdown in China have on the Gulf?

Last week’s stock market crash in China sent shockwaves through...

2
Blood on the bourse floor

Blood on the bourse floor

Arabtec’s share price collapse was the catalyst for a huge sell...

Taking stock

Taking stock

Gulf stock markets have seen a dearth of IPOs since the global...

Most Popular
Most Discussed