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Tue 31 Jul 2012 04:27 PM

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Value of MENA IPOs surges to $1.29bn in Q2

Initial public offerings in the Middle East and North Africa up nearly 350% on Q2 2011

Value of MENA IPOs surges to $1.29bn in Q2

Initial public offerings in the Middle East and North Africa raised a total of $1.29bn in the second quarter of 2012, Ernst & Young said on Tuesday.

Its MENA Q2 2012 IPO Update said five IPOs had taken place in the region in the three months to end-June, with the value almost three and a half times more than the $374.77m raised in the second quarter of 2011.

The Q2 2012 figure was a staggering 15.46 times more than the $82.8m raised in the first quarter of this year, Ernst & Young said.

Its report added that a total of $1.37bn was raised in the IPO markets by regional companies in the first six months of this year compared to $396.47m in the first half of 2011, a growth of about 350 percent.

Saudi Arabia's Al Tayyar Travel Group led regional IPO deal sizes with its $364.65m listing on the Tadawul, followed by Saudi Airlines Catering's $354.09m and the kingdom's Najran Cement Company's $226.58m IPO, also listed on the Tadawul.

UAE-based NMC Healthcare that listed on the London Stock Exchange in April came in at fourth position with a $187m IPO followed by Oman's Bank Nizwa which raised $158.49m and listed on the Muscat Stock Market.

Phil Gandier, MENA head of transaction advisory services, Ernst & Young said: "The sudden spike in IPO activity in the second quarter was an exceptional event within a consistently depressed MENA IPO market.

"We expect the Saudi market to continue listing a steady but modest flow of new companies during the remainder of 2012."

Global IPO activity saw an improvement in Q2 with a total of 206 deals raising $41.8bn, an increase of five percent by deal numbers and 141 percent higher by capital raised compared to Q1 2012.

However, this quarter was 46 percent lower by number of deals and 36 percent lower by capital raised than in Q2 2011.