27/09/2017 06:11 AST

In the first half of 2017, Middle East and North Africa (Mena) IPO activity witnessed 16 deals, representing a 100 per cent increase when compared to the first half of 2016. Announced Mena value, or capital raised, reached $788 million in H1 2017, a 21 per cent decrease from the first half of 2016.

Out of the 16 IPOs, nine IPOs worth $200.5 million were from companies listed on the Saudi NOMU market. The cross-border IPO of ADES International Holding Ltd raised $243.5m on the London Stock Exchange and was the largest IPO of a Mena company, by capital raised, year-to-date. “Increasing stability in oil prices and confidence in the global economy and markets are likely to drive an increased IPO activity in 2017 and 2018 across Mena, with a strong backlog of companies potentially preparing to come to market. The key driver for the Mena IPO market will likely be the privatisation of leading government-owned assets across a number of sectors,” Gregory Hughes, EY Mena IPO Leader, said.

The greenfield IPO of Orient UNB Takaful in second quarter of 2017 represents the first IPO on the Dubai Financial Market (DFM) since the IPO of Dubai Parks and Resorts in 2014. Volume of deals increase in GCC

The GCC saw 13 IPOs raised in the first half of 2017, a 33 per cent increase on the deals announced for the same period last year. However, deal value declined by 6 per cent to $700 million in first half of 2017 compared to the same period last year.

The highest capital raised in the first half of 2017 was in the oil and gas sector with one deal announced at a value of $243.5 million. The construction industry followed with one deal valued at $135 million. The third most valuable IPO by capital raised was in the real estate investment trust (REIT) at $105 million for one deal.

In the first half of 2017, oil prices continued to fluctuate between $45 and $55 per barrel as the initial effect of agreed oil production cuts by Opec and non-Opec members continue to be impacted by ongoing market factors, resulting in a downward trend toward the end of the second quarter of 2017. However, the continued drive for privatisation across Mena countries is likely to result in an increase in the number of IPOs on exchanges.

“Global IPO activity should continue to strengthen in the second half of 2017, underpinned by capital markets reaching all-time highs. Investor sentiment has improved and the global outlook is more positive, which should reflect on the IPO market in the Mena region,” Mayur Pau, Mena Financial Services IPO Leader, EY, said.


Gulfnews

Ticker Price Volume
STC 80.00 582,963
SABIC 123.40 5,002,630

ADX 4,830.22 29.32 (0.61%)

Market
Dividend Yield (%)
P/E
Price/BookValue
Performance
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Index vs...
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
ADIB 3.95 0.02 (0.50%)
FAB 13.80 0.10 (0.72%)
ADCB 7.01 0.00 (0.00%)
CBI 0.73 0.00 (0.00%)
UNB 3.77 0.07 (1.89%)

DFM 2,840.89 -6.25 (-0.22%)

Market
Dividend Yield (%)
P/E
Price/BookValue
Performance
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Index vs...
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
EIB 10.00 0.00 (0.00%)
EMIRATESNBD 9.20 -0.18 (-1.92%)
EMAAR 5.10 -0.02 (-0.40%)
EMAARMALLS 2.05 0.00 (0.00%)
DIB 5.01 0.01 (0.20%)
Oman share index ends lower

14/08/2018

The MSM30 index ended lower on Monday and closed at 4,381.92 points, down by 0.55 per cent. MSM Sharia Index closed at 605.47 points, down by 0.07 per cent. Bank Nizwa was the most active in terms of

Times of Oman

Turkey storm felt in Dubai index through Emirates NBD

14/08/2018

The contagion impact from the crisis in Turkey was being felt in Dubai, along with other emerging markets.

The impact was felt largely through Emirates NBD, which recently entered an agreem

Gulf News

Qatar shares tumble as Turkey’s currency crisis alarms investors

13/08/2018

Qatar stocks led losses across the Gulf on Sunday as the Turkish currency crisis unsettled investors. Every regional index ended the day in negative territory. The Doha measure declined by 2.6 perce

Arab News

Oman share index ends lower

13/08/2018

The MSM30 index ended lower on Sunday and closed at 4,406.35 points, down by 0.56 per cent. MSM Sharia Index closed at 605.87 points, down by 0.31 per cent. Al Anwar Holding was the most active in te

Times of Oman

Dubai index sees sharpest fall in 1 month

13/08/2018

The Dubai index fell more than 1 per cent on Sunday, its sharpest fall since July 2, as shares like Emirates NBD and DAMAC Properties weighed on sentiment.

The Dubai Financial Market Genera

Gulf News