Global IPO trends 2012: Prepare early, move fast
Middle East and Africa: Saudi Arabia leads the way
“Islamic finance saw a record year and was the preferred funding option for many growth businesses.”
Middle East and North Africa IPO Leader,
Ernst & Young
The Middle East’s IPO scene stalled last year as issuers and investors worried about market volatility, economic uncertainty and the consequences of political change.
Total funds raised stood at US$929.9m in 2011, a 68.5% decline on 2010. But the number of IPOs in the pipeline across the region continues to grow. When the economic outlook improves and investors regain their confidence, there’s the potential for a flood of deals.
Islamic financing is strong
With the IPO markets effectively closed in some cases, the region’s growth companies increasingly turned to other sources of capital. Islamic funding such as Sukuk — a form of bond — saw a record year and was the preferred funding option for many growth businesses.
Saudi Arabia was the leading IPO market
Saudi Arabia raised the most money overall — US$417.8m — and saw the second–largest IPO on a Middle East exchange. Africa saw 14 IPOs worth US$886m in 2011, with 4 South African deals in the real estate and consumer products sectors driving activity.
<< Previous | Next >>
- Global IPO activity rose in Q2
Even without Facebook’s IPO, which made up 38% of capital raised in Q2, overall global IPO activity in Q2 was 49% higher than Q1.