Middle East IPOs may be deferred

IPOFluctuating oil prices and uncertainty around the UK’s vote to leave the European Union, “may result in future volatility on the MENA capital markets and the potential deferral of IPOs [initial public offerings] in the MENA region”, according to EY.

The consultancy was commenting on its figures for IPOs in the second quarter of 2016, when six deals raised a total of $397 million.

The quarter was the second-busiest in terms of deal volumes since the start of 2015, however the sum raised was a third less than what was gathered in the first quarter by just two IPOs and less than a fifth of what was raised in the second quarter of 2015, when ten IPOs raised a bumper $2.2 billion.

“Given recent trends, Saudi Arabia and Egypt are the key MENA markets most likely to see any IPO activity following the traditionally quiet summer period,” said the consultancy.

The top issuer in the second quarter was Al Yamamah Steel of Saudi Arabia which raised $146 million, following by L’Azurde, a Saudi jewellery company, which raised $127 million.

©2016 funds global mena

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