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
 Oct 27 2016 - [One Day Live Training] Mixing In Stirred Tanks - Dublin, Ireland - November 08, 2016MENAFN Press
(MENAFN Press) [One Day Live Training] Mixing In Stirred Tanks - Dublin, Ireland - November 08, 2016 Mixing in Stirred Tanks - a one day training to enable chemical engineers with the latest ...

 Oct 27 2016 - NY Governor Andrew M. Cuomo is Violating the Human Rights of the DisabledMENAFN Press
(MENAFN Press) NY Governor Andrew M. Cuomo is Violating the Human Rights of the Disabled Jonathan Carey "Champion for the Disabled" Born September 12,1993 Killed by caregivers on February 15,2007 ...

 Oct 27 2016 - US$ 859 Mn Benelux Power Tools Market Poised for Steady GrowthMENAFN Press
(MENAFN Press) US$ 859 Mn Benelux Power Tools Market Poised for Steady Growth Benelux shipments of power tools reached 10 million units in 2016, with Netherlands continuing its position as the ...

 Oct 27 2016 - Digle is Challenging the Search Ecosystem, Removing the Robots, and Making Results more RelevantMENAFN Press
(MENAFN Press) Digle is Challenging the Search Ecosystem, Removing the Robots, and Making Results more Relevant Digle.com is responding to the need for a better way to perform complex searches ...

 Oct 27 2016 - Simply Supplements release my NutripackTM, personalised nutrition at affordable prices.MENAFN Press
(MENAFN Press) Simply Supplements release my NutripackTM, personalised nutrition at affordable prices. Simply Supplements, one of the UK's leading mail order and online supplements suppliers are ...

 Oct 27 2016 - Levenhuk introduces LabZZ optics for kids and teenagersMENAFN Press
(MENAFN Press) Levenhuk introduces LabZZ optics for kids and teenagers Levenhuk LabZZ optical products are designed especially for the youngest users. They have compact dimensions, light ...

 Oct 27 2016 - A not-to-be-missed exhibition of 145 transformative projects from 50 universities in 30 countriesMENAFN Press
(MENAFN Press) Global Grad Show, the largest exhibition of graduate design and innovation from universities around the world, is back with a five-fold increase in participation since its first ...

 Oct 27 2016 - Visa signs exclusive co-branded cards partnership with Etihad Aviation Group’s Global Loyalty CompanyMENAFN Press
(MENAFN Press) Visa (NYSE:V), a global payments technology company, today signed a multi-year partnership with Global Loyalty Company (GLC), to develop a range of co-branded credit, debit and charge ...

 Oct 27 2016 - Emirates Post Group develops core mail servicesMENAFN Press
(MENAFN Press) Emirates Post Group is devoting greater attention to its core mail services in post offices, as well as innovative non-postal services, in the light of the global trends of falling ...

 Oct 27 2016 - Automotive Fuel Tank Market - Global Industry AnalysisWith Future Forecast 2024MENAFN Press
(MENAFN Press) Due to the increase in vehicle production, there has been a growing demand of automotive fuel tank market. Automotive fuel tank is a part of an engine system where the fuel is stored ...





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

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


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