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UAE tops GCC in IPO activity during Q3 - PwC

UAE tops GCC in IPO activity during Q3 - PwC
The UAE leads the initial public offering (IPO) activity in the GCC during the third quarter with the largest Emaar Malls Group shares float, PwC stated in its latest report.
“The total number of IPOs in Q3 2014 was lower than the previous quarter where we saw seven offerings. However, the total value of the two IPOs in Q3 2014 was $1.6 billion, which is a 78 per cent higher in total value compared to Q2 2014, where a total of seven IPOs raised $902.3 million,” PwC said.
Emaar Malls Group, the largest IPO of the quarter listed on the Dubai Financial Market, raised a total of $1.57 billion. The much-anticipated IPO was oversubscribed and well received by investors. The second listing was by Zain Bahrain on the Bahrain Bourse which raised $24.2 million.
“The volumes in Q3 were low as is typically expected for this period although the Emaar Malls IPO seemed to be well received, being several times oversubscribed. Activity levels we are seeing across the region are unprecedented in recent times and we should see the largest ever regional IPO in Q4 as Saudi Arabia’s National Commercial Bank launches its IPO raising what is expected to be in excess of $5 billion from its float,” Steve Drake, head of PwC’s Capital Markets team in the Middle East region said.
The third quarter of 2014 in the GCC commenced with the holy month of Ramadan in July followed by the summer season in August underpinning the anticipated dry period in terms of IPO activity, with no listings on the GCC exchanges. However, in September the market began to recover and witnessed two IPOs. The total number of offerings in the third quarter last year was relatively similar with only one IPO in August; however, the proceeds raised were lower at $137.6 million.