Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Mena IPOs raise $2.4bn in first half of this year  Join our daily free Newsletter

MENAFN - The Peninsula - 25/08/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - The Peninsula) The Mena IPO market performed robustly in the first half of 2014 (H1, 2014) raising 2.4bn from 16 IPOs. This has been the market's best performance in terms of volumes and proceeds in the aftermath of the economic crisis in 2008 when it raised 9.4bn from 36 issues in H1, 2008.

The MSCI upgrading Qatar and the UAE to emerging markets from frontier markets, sustained investment in developing social infrastructure, and capacity building to host upcoming global events such as FIFA 2022 in Qatar and Expo 2020 in Dubai are the catalysts for recovery in regional equity markets. The probability of Saudi Arabia's equity market opening up to foreign investments also boosted recovery, Arabic business portal Mubasher reported.

The IPO volumes and capital raised remained low after 2008. Liquidity in the market dried up further, as banks in a few GCC countries like Saudi Arabia ceased lending for stock purchases due to high probability of defaults and, consequently, hefty provisions for impaired stock loans. Local companies chose other fundraising routes like sukuk over IPOs. Sukuk worth around 19.5bn was issued in Mena in 2011, an increase of 183 percent over that in the previous year. In the same year, IPO listings were the lowest, with less than 1bn raised, down 67.9 percent from the previous year.

Increased foreign ownership limit, especially in the Qatari market that raised foreign investment limits to 49 percent from 25 percent in May 2014, is expected to improve the flow of foreign funds into regional equity markets. This would also set IPO markets in momentum. The likely opening of the Saudi Arabian stock market to foreign investors would bode well for Mena markets.

The number of private equity exits through equity listings started declining in 2008, as firms held off monetising returns on investments due to poor valuations; however, the number of exits is expected to pick up. The number of PE exits in Mena fell from 18 in 2008 to one in 2009. As valuations improve, the pressure to monetise investments could contribute significantly to IPO activity in the future. In H1, 2014, three of the seven private equity exits were through the IPO route.

GCC countries had the largest share of IPO listings in Mena, constituting nearly 78 percent of capital raised from 64 IPOs between 2009 and 2014. In H1, 2014, they accounted for 90 percent of the capital raised through IPOs in Mena, with 10 IPOs raising nearly 2.1bn. Saudi Arabia is the prime issuer in terms of number of issues and capital raised in the Mena IPO market. The country accounted for nearly 38.5 percent of total proceeds raised from 41 IPOs between 2009 and 2014.

The largest deal in H1, 2014 by Mesaieed Petrochemical Holding Company (MPHC), a subsidiary of Qatar Petrochemical, garnered 905.3m. It accounted for about 40 percent of total capital raised in H1 2014 and was five times oversubscribed. This was Qatar's first IPO since 2010. Three new issues in the UAE contributed to about 20 percent of total capital raised in MENA. The issue of Marka, a chain of retail and food outlets, which was not operational at the time of listing, was 36 times oversubscribed.

 


The Peninsula




  MENA News Headlines
 Jul 4 2015 - Qatar- Milaha acquires 100pc controls in two liquefied gas carriersThe Peninsula
(MENAFN - The Peninsula) Milaha announced that its wholly owned subsidiary, Qatar Shipping Company, acquired the remaining 60 percent interest in each of the two entities that own the liquefied ...

 Jul 4 2015 - Tunisia arrests eight with 'direct links' to beach massacreThe Peninsula
(MENAFN - The Peninsula) Tunisia has arrested eight people in connection with last week's jihadist massacre at a seaside resort, as the remains of more British victims were set to be flown home ...

 Jul 4 2015 - Egyptian air strikes kill 23 militants in North Sinai: sourcesThe Peninsula
(MENAFN - The Peninsula) Egypt launched air strikes on Islamist militant targets in the Sinai peninsula on Thursday, killing 23 fighters a day after the deadliest clashes in the region in years, ...

 Jul 4 2015 - Saudi opens privatised airport for pilgrimsThe Peninsula
(MENAFN - The Peninsula) Saudi Arabia yesterday officially opened a billion-dollar aviation gateway aimed at pilgrims, in its first airport privatisation. Local media said Custodian of the Two Holy ...

 Jul 4 2015 - Kuwaiti Sunni and Shi'ite worshippers, pray together with Emir showing unityThe Peninsula
(MENAFN - The Peninsula) Kuwait deployed unprecedented security measures around Shiite mosques for Friday prayers following last week's deadly bombing, as the emir attended a rare Shiite-Sunni joint ...

 Jul 4 2015 - Top jihadist from Tunisia killed by US strike in LibyaThe Peninsula
(MENAFN - The Peninsula) A top Tunisian jihadist was killed by a US airstrike in Libya last month, The New York Times reported Friday.The jihadist, Seifallah Ben Hassine, also known as Abu Ayadh, was ...

 Jul 4 2015 - Saudi policeman killed in raid, IS flags foundThe Peninsula
(MENAFN - The Peninsula) A Saudi policeman was shot dead on Friday during a raid in which three people were arrested and flags of the Islamic State group were found, the interior ministry said. The ...

 Jul 4 2015 - Qatar- Government taking measures to control inflationThe Peninsula
(MENAFN - The Peninsula) The government is taking steps to control inflation which has risen to 3.5 percent, an expert told a symposium at the Green Tent of Friends of the Environment Centre, ...

 Jul 4 2015 - Qatar- Leaders greet Belarus presidentThe Peninsula
(MENAFN - The Peninsula) Emir H H Sheikh Tamim bin Hamad Al Thani has sent a cable of congratulations to Belarus President Alexander Lukashenko on his country's Independence Day. Deputy Emir H H ...

 Jul 4 2015 - Qatar- HMC, SickKids mark five years of partnershipThe Peninsula
(MENAFN - The Peninsula) Hamad Medical Corporation (HMC) and The Hospital for Sick Children (SickKids) in Toronto, Canada, a paediatric academic health science centre, celebrated five years of ...

more...


 






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

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