Mena IPOs raise $2.4b in H1

Mena IPOs raise $2.4b in H1

Dubai - Saudi Arabia and Egypt leading activity; value leaps 92% quarter-on-quarter.

By Staff Report

Published: Wed 12 Aug 2015, 12:00 AM

Last updated: Wed 12 Aug 2015, 9:39 AM

The first half of 2015 saw 11 initial public offerings in the Middle East and North Africa region raising capital of over $2.4 billion, according to EY's Mena IPO Eye for the period.
Deal volume decreased by 31 per cent and proceeds raised decreased by one per cent in the first half, compared with the same period last year. Egypt and Saudi Arabia witnessed the highest number of IPOs with five and three IPOs, respectively.
The second quarter of 2015 saw a significant increase in IPO value, with nine IPOs raising over $2.1 billion, a 92 per cent jump compared to the same year-ago period. However, the number of IPOs decreased by two in the second quarter compared with the same quarter in 2014.
Phil Gandier, Mena Transaction Advisory Services leader at EY, said: "Egypt and Saudi Arabia continue to be strong IPO performers; the IPOs on Egyptian and Saudi Arabian exchanges were the primary drivers of IPO activity in MENA in H1 2015. Egypt continues to benefit from increasing political stability, improved economic conditions and various reforms, which are driving confidence in the Egyptian capital markets, attracting both companies and investors."
Largest IPO in Saudi Arabia
First-half IPOs in Egypt included Integrated Diagnostics Holdings, Edita Food Industries, Orascom Construction and Emar Misr.
Saudi Arabia saw the listing of three companies, including the long-awaited IPO of Saudi Ground Services Company on the Saudi Stock Exchange, which was the largest IPO in the first half of 2015, raising $751.9 million, and was over twice the size of the next largest IPO during the period. The IPO is part of the continued privatisation of Saudi Arabian Airlines' business units.
Mayur Pau, Mena IPO leader at EY, said: "IPOs on the Tadawul and the Egyptian Exchange continue to attract strong demand, with offerings up to 11 times oversubscribed, highlighting positive investor sentiment in these markets in particular."
The second quarter of 2015 also saw the first Mena outbound IPOs since the listing of Gulf Marine Services on the London Stock Exchange in the first quarter of 2014. Integrated Diagnostics Holdings and Edita Foods Industries opted for listings on the LSE, through a main market listing and listing of global depository receipts.
Integrated Diagnostics Holdings is the third Mena healthcare company to list on the LSE, following the successful IPOs of NMC Health (2012) and Al Noor Hospital (2013). This sector continues to be one of the most attractive sectors in the Mena region for IPOs.

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