Monday, Apr 30, 2012
1100 GMT [Zawya Dow Jones]--Initial public offering, or IPO, activity in the Gulf region has been showing early signs of recovery towards the end of Q1 2012 as investor confidence returns and share price levels improve across markets, according to a PwC report. There were two IPO's in Q1, raising $78M in total, both took place in Saudi Arabia. "Despite evidence of improved activity on some regional stock markets, overall IPO volumes in the region are well below their potential. Saudi Arabia continues to lead the regional exchanges both in terms of volumes and amounts raised. We expect the trend to continue during 2012 with a number of significant offerings in the pipeline awaiting the right IPO window," says Steven Drake of PwC. Meanwhile, GCC debt markets expanded further in Q1 2012 following recovery levels in Q4 2011, as issuers took advantage of better funding costs and liquidity. The sukuk market flourished with Saudi Arabia leading GCC sukuk issuances for the first time and overtaking the UAE in Q1 2012, PwC says. "With the Eurozone crisis yet to stabilize and refinancing dates for maturing debt obligations fast approaching, we believe that GCC issuances will continue to attract strong regional and international interest," Drake adds. (nicolas.parasie@dowjones.com)
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(END) Dow Jones Newswires
30-04-12 1109GMT
