(MENAFN - Khaleej Times) Al masah capital sees positive growth outlook for capital markets in the middle east and north africa and plans to set up a fund of up to 250 million to invest in increasing initial public offerings (ipos) across the region and south east asia its top official says
“we are going to launch an ipo fund based in luxembourg to invest in key sectors in the region. the two-year closed-end fund will be operational by june this year” shailesh dash chief executive of al masah capital told khaleej times on the sidelines of the fourth annual investor forum on wednesday.
He said strong rebound in capital markets has set the stage for a flurry of ipo launches across the region and the trend will continue in the coming days.
“about 25 ipos have already been planned and some of them even listed on local stock markets while others preferred to register on the london stock exchange and other places” he said adding that many more ipos are in the pipeline.
The mena region witnessed a total of 17 ipo closings worth 836.6 million in 2013 according to mena yearbook launched by al masah capital at the forum.
“given improving global economic activity and sentiments good quality businesses are preparing for ipos over next three to 12 months indicating that the ipo pipeline is likely to be strong in 2014” the report said.
Dash said the proposed ipo fund would invest in the real estate logistics and transport sectors. “we have recently invested in emirates reit and are open to invest in more realty funds but the real growth will come from the logistics and transport sectors. we are also looking at joint venture opportunities and acquisition in aviation oil and gas segments” he said.
Earlier ahmad farouk mohammed executive director investment and strategic management and islamic head khazanah nasional gave a presentation on south-east asia as an emerging investment destination and its links with the middle east region.
“we invested about 25 per cent of our investment portfolio in overseas market and are planning to take this limit to 35 per cent to expand our presence in the middle east and turkey in near future.”
“we want to invest in a good number of strong relationships” he said adding that asean which consists of 10 countries with a total population of 616.6 million also holds good investment potential in many key areas.
In his presentation on the outlook for emerging markets asia and the middle east chief investment officer of robeco hong kong arnout van rijn highlighted the healthy macroeconomic conditions in the region and said healthy gross domestic product and large current surpluses provided boost to the local economies in middle east. he said global events like expo 2020 in dubai and the fifa world cup in qatar pave the way for infrastructure spending across the region.
He also discussed investment prospects in china indonesia and south korea and said investors are looking for structural growth and they are not serious in cyclical growth in some asian nations.