| 18 Jul 2010 |
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Saudi leading 2010 GCC IPO activity
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But capital raised still down on 2009 levels
Dubai, United Arab Emirates - 18th July 2010 - PricewaterhouseCoopersPricewaterhouseCoopers
(PwCPwC), a leading international professional services organisation, has found initial public offering (IPO) activity in the Kingdom of Saudi Arabia (KSA) still to be leading the regional IPO activity in the first half of 2010 with seven of the eight taking place in KSA. The number of IPOs was up slightly on the seven in the first half of 2009 however the total amount raised at the end of June 2010 was USD830 million, 31.4% lower than the USD1,209 million raised during the same period in 2009.The largest IPO in 2010, as of 30 June, was for Knowledge Economic City Company in KSA which raised USD272million, the equivalent of 32.7% of the total capital raised in the GCC. The major factor behind the fall in value in 2010 compared to 2009 is due to the large Vodafone Qatar IPO which raised USD952million in the first quarter of 2009.
"We're optimistic that we will see a pickup in activity in the GCC towards the end of 2010 and into 2011 and that we will see a return of IPOs to the regional markets," commented Steve Drake, Head of Middle East Capital Markets Group, PricewaterhouseCoopersPricewaterhouseCoopers. "We are seeing a significant increase in activity behind the scenes and a number of companies are gearing up for IPO this year.
"There has been a step change in sentiment and with a pent up demand for capital, companies are preparing to come to the market. As it takes between six and nine months to prepare for IPO, we're likely to see more companies list by the end of the year or early 2011."
The only non-Saudi IPO of 2010 was in Qatar, for the Mazaya Qatar Real Estate Development CompanyMazaya Qatar Real Estate Development Company
, which raised USD144 million in Q1. However, Europe and China are still raising more capital than the GCC equity markets. In Europe, the stock exchanges, led by London, saw IPO activity rise for the fifth quarter in a row during the April to June period, amid signs of a modest recovery in investor interest in primary listings. There were 168 IPOs on European exchanges in the first half of 2010 with an offering value of €13,730 million (approximately USD17 billion).
The total value of European IPOs in the first half still lagged the highly successful Greater China markets which saw 207 IPOs with an offering value of €28,327million (approximately USD35 billion). The US markets in turn were weaker than Europe in both number and value of IPOs; USD9,150 million was raised through 66 IPOs in the first half of 2010.
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About IPO Watch Europe
IPO Watch Europe surveys all new primary market equity IPOs on Europe's principal stock markets and market segments (including exchanges in Austria, Belgium, Denmark, France, Germany, Greece, Holland, Ireland, Italy, Luxembourg, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the UK) on a quarterly basis. Movements between markets on the same exchange and greenshoe offerings are excluded. IPO Watch Europe is prepared by PricewaterhouseCoopersPricewaterhouseCoopers LLP (www.pwc.com/uk) a limited liability partnership incorporated in England. PricewaterhouseCoopersPricewaterhouseCoopers LLP is a member firm of PricewaterhouseCoopersPricewaterhouseCoopers International Limited. All market data is sourced from the stock markets themselves and has not been independently verified by PricewaterhouseCoopersPricewaterhouseCoopers LLP.
IPO Watch Europe Surveys and annual reviews are available at: http://www.pwc.co.uk/eng/publications/IPO_Watch_Europe_previous_editions.html
' Capital Markets Group in the Middle EastThe Capital Markets Group in the Middle East is part of the PricewaterhouseCoopersPricewaterhouseCoopers
global network of capital markets specialists who provide a broad range of advisory services to companies and investment banks in connection with capital market transactions. These include preparations for becoming a public company, selecting the right market and advisory team, assisting with reviewing accounting policies and GAAP conversion projects, advising on regulatory issues and undertaking financial and business due diligence investigations.About PricewaterhouseCoopers
PricewaterhouseCoopersPricewaterhouseCoopers
(www.pwc.com) provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 163,000 people in 151 countries across our network share their thinking, experience and solutions to develop fresh perspectives and practical advice.Established in the region for over 30 years, PricewaterhouseCoopersPricewaterhouseCoopers Middle East has offices in 12 countries: Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, Palestine, Qatar, Saudi Arabia and the United Arab Emirates, with around 2,500 people.
www.pwc.com/middle-east
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