The total value of Middle East IPOs in 2009 was about one sixth that of the previous year, Ernst & Young said in a report published on Tuesday.
Regional markets raised $2.06 billion from 15 IPOs until November 25 this year, compared to $12.46 billion in all of 2008, the report said.
Of the four regional IPOs between October and November of 2009, three were Saudi Arabian insurance companies and one bank in Syria, Ernst & Young added.
Syria’s Albaraka Bank was the biggest IPO raising $37.23 million followed by Saudi Arabia’s Gulf General Cooperative Insurance Company (Al Khaleej Insurance) at $21.3 million.
Al Alamiya Cooperative Insurance Company and Buruj Cooperative Insurance Company, both from Saudi Arabia, raised $16 million and $13.87 million, respectively.
Phil Gandier, managing partner, Transaction Advisory Services, Ernst & Young Middle East, said: “In 2009 IPO activity was concentrated in three countries; Qatar raised $952.03 million, Saudi Arabia raised $1.03 billion and Syria raised $76.99 million in 2009.
“There has been no IPO activity in any other country in the Middle East in 2009. It is difficult to foresee with any certainty when the IPO activity will pick up even though as many as 114 IPOs have been announced.”
Globally, after stagnant markets in the first two quarters, IPO activity started to pick-up in the second half of 2009, principally driven by deals from Asia and South America, the report added.
These two regions have raised $68.6 billion in listings so far in 2009 accounting for 72 percent of the total IPO value, according to the update.
The number of deals for the 11 months is dramatically down in 2009, with only 459 IPOs listing so far in 2009 (compared to 740 deals for the same time period in 2008).
By funds raised, the top three exchanges for the year to date are the Hong Kong Stock Exchange, which accounted for 18.7 percent of capital raised ($17.7 billion); New York Stock Exchange 17.9 percent ($16.9 billion) and Shanghai Stock exchange for 17.0%percent ($16.1 billion).
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