Nine IPOs in MENA raise US$482.6m in Q2 2013, bringing total IPO value 52% higher in H1 2013 compared with H1 2012
Dubai, 07 June 2013
Eight IPOs on regional exchanges - five in Tunisia, two in Saudi Arabia and one in Oman
One outbound listing from the UAE on the London Stock Exchange
MENA IPO value dropped in Q2 2013 with nine deals raising US$482.6m compared with US$1.6b raised in Q1 2013, according to Ernst & Young’s MENA Q2 2013 IPO update. Q1 2013 experienced the highest amount of capital raised through IPOs in MENA in one quarter since 2008, bringing the total capital raised in IPO markets in MENA to US$2.1b in the first six months of this year. This is 52% higher when compared with the US$1.4b raised in the first half of 2012. Additionally, the Q2 2013 IPO capital raised was lower by 63% from US$1.3b raised in Q2 2012.
Phil Gandier, MENA Head of Transaction Advisory Services at Ernst & Young says: “This is the highest Q2 IPO performance by volume seen in the past five years. Although the volume was up from Q2 2012; there were no big ticket IPOs to boost the overall value, apart from one outbound listing on the LSE. The results for Q2 2013 are low in value terms, however from a half yearly perspective, H1 2013 has seen the highest amount of capital being raised in the past five years which is primarily due to Qtel’s US$1.3b Asiacell Communications IPO during Q1 2013. Whilst most MENA markets still remain slow, the flurry of small listings on the Tunis Stock Exchange shows that the country’s economy is improving after a period of depressed activity. Looking forward, IPO values are expected to remain relatively low in the third quarter of this year as activity typically slows down during the summer period.”
The largest IPO this quarter was an outbound listing by UAE healthcare company Al Noor Hospital, which raised US$342.7m on the London Stock Exchange (LSE). The second largest was One Tech Holding in Tunisia, which raised US$51.4m on the Tunisian stock exchange followed by Aljazira Takaful in Saudi Arabia which raised US$28m on the Tadawul.