GCC saw 79% decline in IPO value in Q4: PwC 

(MENAFN) A PwC research showed that GCC initial public offerings (IPO) market further declined in the fourth quarter of last year, with values falling by 79 percent year-on-year, Arabian Business reported.

The average IPO size in the quarter fell sharply to USD71 million in the fourth quarter from USD343 million a year earlier.

Three Gulf listings were made in the October-December period raising USD212 million, a three percent less than the previous quarter.

Saudi Arabia contributed two of the three IPOs, accounting for 70 percent of the total raised across the region, the research found.

The research also found that there were only nine IPOs made in the GCC during last year raising a total of USD789 million, three IPOs less from 2010 which raised a total of USD2.013 billion.

The UAE saw three IPOs in the first half only, while Saudi Arabia saw five IPOs during the year, contributing 58 percent of the total value raised the region, the research showed. Oman hosted only IPO in the fourth quarter.

The research also found that IPO volumes fell by 44 percent, while the total money raised dropped by 55 percent compared to 2010.

On the other hand, PwC is seeing higher confidence in the GCC stock exchanges this year, and thus expects increased activity in certain regional markets during 2012.