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Fri 29 Sep 2017 01:30 PM

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Privatisation in MENA set to drive IPO activity in 2018 - EY

EY said announced MENA value, or capital raised, reached $788 million in H1

Privatisation in MENA set to drive IPO activity in 2018 - EY
The key driver for the MENA IPO market will likely be the privatisation of leading government-owned assets across a number of sectors, including Saudi Aramco.

IPO activity in the Middle East and North Africa witnessed 16 deals in the first half of 2017, doubling the number seen in the same period last year.

EY said announced MENA value, or capital raised, reached $788 million in H1, a 21 percent decrease from H1 2016. 
It added that the first six months of 2017 was the most active first half of the year by number of IPOs for 10 years.
Out of the 16 IPOs, nine IPOs worth $200.5 million were from companies listed on the Saudi NOMU market.
 
Gregory Hughes, EY MENA IPO leader, said: “Increasing stability in oil prices and confidence in the global economy and markets are likely to drive an increased IPO activity in 2017 and 2018 across MENA, with a strong backlog of companies potentially preparing to come to market. 
"The key driver for the MENA IPO market will likely be the privatisation of leading government-owned assets across a number of sectors.”
The GCC saw 13 IPOs raised in the first half of 2017, a 33 percent increase on the deals announced for the same period last year. However, deal value declined by 6 percent to $700 million.
The highest capital raised in the first half of 2017 was in the oil and gas sector with one deal announced at a value of $243.5 million, followed by the construction industry and real estate.
Mayur Pau, MENA Financial Services IPO leader, EY, said: “Global IPO activity should continue to strengthen in the second half of 2017, underpinned by capital markets reaching all-time highs. Investor sentiment has improved and the global outlook is more positive, which should reflect on the IPO market in the MENA region.”

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