The Middle East IPO market declined nine per cent in value in the first-half of this fiscal compared to the corresponding period last year.
Over all, the regional IPO markets maintained a low level of activity with 11 small-sized IPOs worth a total of $1bn during the period.
New listings were being launched at a slower than expected pace due to continued economic uncertainty and dampened investor confidence. Of the 100 IPOs that were announced for the second-half of 2010, only a few were likely to come by, according to Ernst & Young's H1 Middle East IPO update released yesterday.
However, the second-quarter performance offered a glimmer of hope.
Markets moved northwards for thesecond-quarter in a row this year posting a 40pc increase in total capital raised in Q2 of 2010 to $590.6m from the first-quarter's $420.5m.
"Though the numbers are not at pre-crisis levels, the trend seems to indicate a movement away from the lower end of the market cycle," said Phil Gandier, the global consultancy's MENA Transactions Leader.
He said IPO activity was mainly confined to Saudi Arabia, Jordan, Qatar, Egypt and Syria during the last three quarters.
"To really be on a path to recovery, we need to see new companies reaching out to investors in the other regional markets as well."
The Middle East's largest IPO in Q2 2010 was Saudi Arabia's Knowledge Economic City Company, which raised $272m, equivalent to 46pc of the regional total.
Egypt-based Juhayna Food Industries with $176.4m, Saudi Arabia-based Al Hassan Ghazi Ibrahim Shaker Company $137.2m and Syrian Cham Exchange Company $2.7m and United Exchange Company $2.4m followed suit.
By K.V.S. Madhav
© Bahrain Tribune 2010
