Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

IPO activity to remain on firm footing in 2014  Join our daily free Newsletter

MENAFN - Arab News - 16/01/2014

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - Arab News) MENA IPO activity is expected to remain on firm footing in 2014 following a strong uptick in listings in the last quarter of 2013, to close the year with a total of seven deals raising around 726.2 million, according to EY MENA IPO Update: Q4, 2013.

Better market fundamentals are expected to support a solid start to 2014 for new offerings.

Phil Gandier, MENA transaction advisory services leader, EY, says: "The MENA IPO market is rebounding and recovering. The improving macro-economic backdrop driving up stock market valuations and rising investor confidence in key markets saw the IPO year end on a high. Q4 has seen an increase in both volume and value compared to 2012, registering the highest value of IPOs since 2008."

Gandier added: "Additionally, in our Capital Confidence Barometer report, 73 percent of executives in MENA see the local economy improving, with the highest percentage of confidence being in indicators such as economic growth (70 percent), employment growth (64 percent) and credit availability (59 percent). The confidence in these indicators bodes well for the region as economic growth and credit availability are key drivers for the IPO market."

In Q4, 2013, seven IPOs in MENA recorded a 133 percent increase in terms of volume and 114 percent in terms of value compared to Q4 2012. The largest IPO was from the UAE with DAMAC Real Estate Development Ltd. listing on the London Stock Exchange and raising 348 million in a global depository receipt (GDR) offering. Two other IPOs from the UAE were also in the UK, with two in Oman and one each in Saudi Arabia, Morocco and Tunisia.

"Although IPOs have still not reached pre-financial crisis levels, there has been a notable improvement in performance. The stage is set for this momentum to continue across the region and we expect the strong performance in the United States and Europe to reflect in MENA," says Gandier.

In 2013, twenty-three MENA IPOs raised 3 billion, a 64 percent increase in terms of volume and 51 percent increase in terms of value compared to 2012. Tunisia led with nine IPOs, followed by five in Saudi Arabia, four in Oman, three in the UAE and one each in Iraq and Morocco.

"Family businesses are increasingly looking at IPOs as a means of monetizing wealth, raising capital and institutionalizing the business and the MCSI upgrading of Qatar and the UAE to emerging markets may help to boost interest in the region," says Gandier.

Financial services was the leading sector in 2013 by deal volume with seven IPOs, followed by three in the power and utilities sector and two each in transport and the real estate sector.

The largest IPO during 2013 was Asiacell Communications in Iraq with a capital raise of 1.3 billion.

Three IPOs from the UAE (Al Noor Hospital, DAMAC Real Estate Development Ltd. and Action Hotel Plc) raised 740.7 million from foreign listings on the London Stock Exchange in 2013.

"Some issuers have decided to go outside of MENA and it will be interesting to see how this trend of issuers going overseas will develop in the coming year. There is a strong pipeline of good quality businesses preparing to IPO over the next nine months. It usually takes companies 12 to 18 months to get ready to float and there is plenty of preparatory work under way. If the macroeconomic conditions in the region continue to improve, the next 18 months to two years will be quite busy," Gandier added.

 






  MENA News Headlines


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help