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

E&Y: Regional IPO deal values in 2009 are one-sixth of 2008's  Join our daily free Newsletter

MENAFN Press - 10/01/2010

No. of Ratings : 0
Add to Mixx!


(MENAFN Press) Reflecting the general state of the regional IPO market, the year-end IPO update by Ernst & Young states that total regional IPO deal values in all of 2009 came in at approximately one-sixth the value of all IPOs in 2008. Middle Eastern markets raised US2.06 billion from 15 IPOs until 25th November this year as compared to US12.46 billion in all of 2008.

According to Phil Gandier, Managing Partner, Transaction Advisory Services, Ernst & Young Middle East, In 2009 IPO activity was concentrated in three countries; Qatar raised US952.03 million, Saudi Arabia raised US1.03 billion and Syria raised US76.99 million in 2009. There has been no IPO activity in any other country in the Middle East in 2009. It is difficult to foresee with any certainty when the IPO activity will pick up even though as many as 114 IPOs have been announced.

Of the four regional IPOs between October and November of 2009, three were Saudi Arabian insurance companies and one bank in Syria. Syrias Albaraka Bank was the biggest IPO raising US37.23 million followed by Saudi Arabias Gulf General Cooperative Insurance Company (Al Khaleej Insurance) at US21.3 million. Al Alamiya Cooperative Insurance Company and Buruj Cooperative Insurance Company, both from Saudi Arabia, raised US16 million and US13.87 million, respectively.

Samar Obaid, Partner at Ernst & Young Jordan, said: This decline reflects investor sentiment in the region and the impact the global economic downturn has had on the world at large and the region in particular. However, I believe that the market is already showing much potential for next year with financial certainty around the world increasing in many companies and across many economies. Some companies have chosen to delay potential and planned IPOs in the pipeline for this year which again translates into a better outlook for the IPO Market in the Middle East next year.

She added: Here in Jordan we witnessed no IPO activity this year, as many companies chose to raise capital from private equity or strategic partners. As confidence in the market increases, it is likely that there will also be an increase of fund-raising on the Amman Stock Exchange.

Globally, after stagnant markets in the first two quarters, IPO activity started to pick-up in the second half of 2009, principally driven by deals from Asia and South America. These two regions have raised US68.6 billion in listings so far in 2009 accounting for 72% of the total IPO value, according to the update.

The number of deals for the 11 months is dramatically down in 2009, with only 459 IPOs listing so far in 2009 (compared to 740 deals for the same time period in 2008). However, from 1 January to 30 November 2009, the capital raised globally was US94.9 billion, which is at parity with the amount raised in the 11 months of 2008 (US94.6 billion).

IPO activity in North America also declined in value by nearly 38%, from US26.6 billion in the 11 months in 2008 to US16.6 billion with 66 IPO listed so far this year. European IPOs only accounted for 10% of total IPO deals and a modest US 5.0 billion in value. This compares with 22% of total value of IPO deals last year, with 160 IPOs raising US13.6 billion. However, we did see some significant activity in the US in the second half of 2009 and finally in Europe in Q4 with some high profile listings received well by the market.

The leading sectors by number of deals were industrials (77 IPOs); materials (68); and high technology (55). The following three sectors (out of 12) accounted for 50% of total capital raised: financials (US21.7 billion), industrials (US16.1 billion) and real estate (US9.5 billion).

The top three IPOs by capital raised were Banco Santander Brazil SA, the largest IPO this year and the largest in Brazilian history, which raised US7.5 billion, China State Construction Engineering Corp, which listed in Shanghai in July at US7.3billion, Metallurgical Corp of China Ltd (US5.2 billion on the Shanghai and Hong Kong stock exchanges). Of the top 10 IPOs, six are from emerging markets.

By funds raised, the top three exchanges for the year to date are the Hong Kong Stock Exchange, which accounted for 18.7% of capital raised (US17.7 billion); New York Stock Exchange 17.9% (US16.9 billion) and Shanghai Stock exchange for 17.0% (US16.1 billion). The top three exchanges by deal activity are the Shenzhen stock exchange (73 IPOs); Hong Kong Stock Exchange (47) and KOSDAQ stock exchange (46).

About Ernst & Young
Ernst & Young is unique among professional services firms with IPO competency centers in key markets around the world, providing consistent, comprehensive professional services to the global IPO market. About Ernst & Young Ernst & Young is one of the biggest local and international leaders in assurance, tax, transaction and advisory services, and began its operations in Amman, Jordan, in 1953. Today, our operations in Amman have grown to encompass over 200 employees under the management of three local partners. For more information, please visit www.ey.com. About Ernst & Young Middle EastThe Middle East practice of Ernst & Young has been operating in the region since 1923. For over 85 years, we have evolved our operations in line with the legal and commercial developments of the region. We have over 4,200 people united across 20 offices and 15 Arab countries, sharing the same values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.For more information, please visit www.ey.com/me.About Ernst & Young GlobalErnst & Young is one of the worlds leading professional service organizations and one of the Big Four auditors. Our international resources enable us to deliver a consistent level of quality from one country to another, and all of our 144,000 people located across more than140 countries worldwide, practice under common professional, ethical and independence standards. For more information, please visit www.ey.com.Tel: 962 6 5692008/9Fax: 962 6 5692007P.O.Box: 930391, Amman 11193, Jordan


  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

Apr 24 20143 GCC countries among top 30 on network readiness index ,MENAFN
(MENAFN) According to an annual global technology survey for network readiness index for 2014, three GCC countries have made it to the top 30 list for the third year in a row, Gulf Daily News ...

Apr 24 2014Morocco Admitted As Observer Member to SICA ,Qatar News Agency
(MENAFN - Qatar News Agency) La Romana Dominican April 24 - Morocco has been admitted as an observer member in the Central American Integration System (SICA) which also includes each of Belize ...

Apr 24 2014UN Chief: All Parties in Syria Blocking Aid ,Qatar News Agency
(MENAFN - Qatar News Agency) w York April 24 - The UN Secretary General Ban Ki-moon has accused all parties in Syria's civil war of "flagrant violations" of international law over the delivery of ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Uruguay Public Health Minister Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Montevideo April 24 -Minister of Public Health in Uruguay Maria Susana Mu?iz met here on Thursday with HE qatari ambassador to the republic of Uruguay mohamed hassan ...

Apr 24 2014Israeli Tanks Enter Gaza Border area ,Qatar News Agency
(MENAFN - Qatar News Agency) Gaza April 24 - Six Israeli military tanks on Thursday entered a border area in the southern Gaza Strip witnesses said. The tanks crossed into Gaza in an area called ...

Apr 24 2014President Salva Kiir Relieves his Chief of the General Staff ,Qatar News Agency
(MENAFN - Qatar News Agency) Juba April 24 -South Sudanese President Salva Kiir relieved Chief of the General Staff of south sudan army James Hoth Mai. This came in a presidential decree aired ...

Apr 24 2014Aqaba Container Terminal Contributes to Elevating Standards of Pre-School Education ,MENAFN Press
(MENAFN Press) Aqaba Container Terminal (ACT), the world's gateway to Jordan and beyond, recently held a charity dinner in collaboration with the Aqaba Intercontinental Hotel. The event, held at the ...

Apr 24 2014Dubai Financial Market profit soars in Q1 ,MENAFN
(MENAFN) Dubai Financial Market (DFM) announced a better-than-expected net profit increase in the January-March period of this year, Arabian Business reported. The Gulf's only listed bourse said ...





Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

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


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Investment Game
Economic Calendar
Financial Glossary

Portfolio Tracker


Financial Calculators

RSS Feeds [XML]

Corporate Monitor


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