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Mideast IPOs top $8.6bn in H1
Middle East markets raised $8.69 billion from IPOs in the first half of the year, up almost 80 percent of the same period last year as regional markets continue to buck the global slowdown.
Ernst & Young said on Wednesday regional IPOs raised $4.72 billion in the second quarter, led by the massive $2.8 billion IPO of Saudi’s Al Inma Bank. The amount raised during Q2 was up 20 percent on the previous quarter.
The professional services firm said the trend in the Middle East was for fewer but larger public offerings, with 26 IPOs in H1 compared to 33 in the first half of 2007.
Globally, the size of IPOs during H1 was roughly half as much as the same period last year, while more IPOs were been postponed or withdrawn than in all of 2007.
Ernst & Young said the region has shown resilience to the slowdown as a result of liquidity created on the back of record oil prices.
It said IPOs continue to be oversubscribed, reflecting the continued appetite for public offerings in the market.
Other large IPOs in the region included Saudi’s Mohammad Al Mojil Group with $559.94 million, UAE-based DEPA United Group with $432.3 million and Egypt’s Palm Hills Developments and Maridive and Oil Services with $348.22 million and $272.93 million respectively.
Ernst & Young said its outlook for the rest of the year was optimistic due to the large number of IPOs in the pipeline and the resilience the market has shown so far this year.
“Companies that have either withdrawn or postponed their IPOs would revisit going public once they realize that market conditions in the Middle East region are less fraught with the uncertainty that is persisting in other regions,” Azhar Zafar, head of mergers and acquisitions at Ernst & Young Middle East, said in a statement.
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