Quotes: 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

 


Arab News




  MENA News Headlines
 Nov 27 2014 - Lebanon mourns 'songbird' SabahArab News
(MENAFN - Arab News) BEIRUT: Iconic Lebanese singer and actress Sabah died Wednesday at the age of 87 after a seven-decade career and a colorful love life that kept her in the headlines until the ...

 Nov 27 2014 - Egypt drops ban on 'adults only' filmArab News
(MENAFN - Arab News) CAIRO: An Egyptian court has revoked a government ban on a film by Lebanese star Haifa Wehbe that had been deemed sexually provocative judicial sources said on Wednesday.In April ...

 Nov 27 2014 - Saudi- Prince vanishes from social mediaArab News
(MENAFN - Arab News) NEW YORK: Prince whose distaste for the music industry's conventions is well known has abruptly disappeared from social media after tentative efforts to promote his two new ...

 Nov 27 2014 - Saudi- Cumberbatch quits smokingArab News
(MENAFN - Arab News) LONDON: 'Sherlock' star Benedict Cumberbatch has revealed he left smoking one month back.The 38-year-old actor said staying away from cigarette is helping him stay healthy ...

 Nov 27 2014 - Saudi- Dilip Kumar perfectly fine: Big BArab News
(MENAFN - Arab News) MUMBAI: Thespian Dilip Kumar is 'perfectly fine' says actor Amitabh Bachchan quashing rumors of the former's health scare.Social networking platforms were abuzz with rumors ...

 Nov 27 2014 - Saudi- Turki Khan: Changing society one step at a timeArab News
(MENAFN - Arab News) Dreams ambitions and determination have no limits dedication to those three traits can take that dreamer ambition-seeker and determined young man or woman to places he or she ...

 Nov 27 2014 - Saudi- Exploring fine art through pencilArab News
(MENAFN - Arab News) Eman Al-Qahtani is a successful talented and ambitious young Saudi artist. She combines thoughts and colors in her paintings. She has her own art method; a painting is to deliver ...

 Nov 27 2014 - Saudi- Qatar lifts 22nd Arabian Gulf CupArab News
(MENAFN - Arab News) Qatar rallied to get the better of Saudi Arabia 2-1 to win the 22nd Arabia Gulf Cup football tournament at the King Fahd International stadium in Riyadh Wednesday night.Playing ...

 Nov 27 2014 - Saudi- Al Kabeer climbs to No. 2 after honors sweep in Globe CupArab News
(MENAFN - Arab News) One mighty performance that saw Al Kabeer Frozen Foods sweep honors had the defending champion moving up the leaderboard after the eighth week in the Thursday League 12th ...

 Nov 27 2014 - Al-Taib wins Fastest Car Race 2014 in RiyadhArab News
(MENAFN - Arab News) Ahmed Al-Taib a Saudi topped the Fastest Car Race 2014 which was organized at Dirab Park racetrack in Riyadh. Al-Taib won the race in a Porsche 911 Turbo which is characterized ...

more...


 






Google

Click to Apply

 
 

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

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

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
Economic Calendar
Financial Glossary


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


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help