•Two IPOs in Saudi Arabia and one in Iraq in Q1'2013
•Asiacell Communications, a telecommunications provider, raised US$1.3 Bn.
Dubai, 09 April 2013: According to Ernst & Young's 2013 Q1 MENA IPO update, regional capital markets recorded a twentyfold increase in capital raised and a 25% decrease in deal volume in Q1'13 (3 IPOs, raising approximately US$1.6 Bn in proceeds), compared to Q1'12 (4 IPOs, raising US$82.8 Mn in proceeds). The three regional IPOs in Q1'13 represented a 374.3% increase from the US$339.8 Mn raised in the previous quarter, Q4'12.
Phil Gandier, MENA Head of Transaction Advisory Services, Ernst & Young, says: "Q1'13 posted the strongest results for the first quarter of the year since 2008. However, the majority of the value is attributed to a large ticket telecommunications IPO in Iraq. This sector is traditionally associated with large value transactions and the high Q1 performance will be sustainable if we start to see similar large value transactions on a regular basis which would bolster the regions capital markets."
Three regional IPOs in the first quarter of 2013
Two IPOs came to market in Saudi Arabia while one was reported in Iraq. The largest issuance was in Iraq, with Asiacell Communications raising US$1.3 Bn, followed by Northern Region Cement Company in Saudi Arabia that raised US$240 Mn and National Medical Care Company in Saudi Arabia that raised US$97.2 Mn.
"Over 40% of investors in the Middle East and Africa stated a preference to invest overseas, as evidenced in Ernst & Young's recent institutional investor study. Therefore, the challenge remains whereby more domestic deal activity would be a key driver for stronger IPO activity and growth in the MENA region," concluded Phil.
-Ends-
Contact name: Lamice Murshid
Company: Ernst & Young
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E-mail: lamice.murshid@ae.ey.com
Contact name: Mohammad Al Qassem
Company: Weber Shandwick
Tel: +971 4 445 4254
E-mail: mal-qassem@webershancwick.com
© Press Release 2013
