The Middle East and North Africa (Mena) corporate sector raised $1.37bn through maiden offers in the first six months of this year, growing more than three-fold year-on-year, according to Ernst and Young.
The Ernst & Young’s Mena Q2 2012 IPO Update, said regional companies raised a total of 1.29bn through five initial public offerings (IPOs) in the second quarter (Q2) of 2012. This is almost three and a half times more than the $374.77mn in the second quarter of 2011 and 15.46 times more than the $82.8mn in the first quarter of this year.
“The sudden spike in IPO activity in the second quarter was an exceptional event within a consistently depressed Mena IPO market,” Phil Gandier, Mena head of transaction sdvisory services, Ernst and Young said.
There were only four IPOs in the second quarter whose ticket sizes made the difference while most country markets remain slow, it said, adding the summer period is traditionally quiet so the third quarter will most probably bring these levels down again.
Saudi Arabia’s Al Tayyar Travel Group led regional IPO deal sizes with its $364.65mn listing on the Tadawul, followed by Saudi Airlines Catering’s $354.09mn and Najran Cement Company’s $226.58mn IPO, also listed on the Tadawul.
The UAE-based NMC Healthcare that listed on the London Stock Exchange in April, came in at fourth position with a $187mn IPO, followed by Oman’s Bank Nizwa which raised $158.49mn and listed on the Muscat bourse.
The global IPO activity saw an improvement in Q2 2012, it said, adding so far this quarter, a total of 206 deals has raised $41.8bn, an increase of 5% by deal numbers and 141% higher by capital raised compared to Q1 2012 ($17.4bn via 196 deals).
However, this quarter was 46% lower by number of deals and 36% lower by capital raised than in Q2 2011 ($65.6bn via 383 deals). The latter was, however, the highest second quarter since Q2 2007.
From Gulf Times.