News
MENA IPOs remain subdued in Q2 2016; new regulations set to strengthen capital markets: EY
The MENA region witnessed six IPOs in Q2 2016, collectively raising US$397.2m, a 40% decrease in volume and 81% decrease in value compared to Q1 2016.
Phil Gandier, MENA Transaction Advisory Services Leader, EY, says: “Given the recent trends, Saudi Arabia and Egypt are the key MENA markets that are likely to see any IPO activity in MENA. Uncertainty in the global capital markets, driven by events such as the vote by the UK to exit the European Union and fluctuating oil prices, may result in future uncertainty in the MENA capital markets and the potential deferral of IPOs in the MENA region.”
New regulations to strengthen MENA capital markets
The UAE has circulated new draft IPO regulations for feedback from stakeholders, setting requirements increasingly in line with international exchanges.
Looking to Saudi Arabia, the Capital Market Authority has announced a number of major changes such as relaxing the requirements for foreign institutional investors, introducing new trading options, and the relaxation of reporting deadlines and the implementation of a new settlement process (T+0 to T+2) as Saudi Arabia works toward inclusion on the MSCI Emerging market index.
Saudi Arabia and Qatar have also announced plans to open a new exchange for small and medium-sized companies towards the end 2016 or beginning of 2017.
“Regulators in the MENA markets continue to implement new regulation to strengthen the capital markets and attract investment. Once the economic environment stabilizes and general market sentiment improves, the backlog of IPO candidates will begin to emerge. Looking historically at economic cycles, the right window of opportunity is often quite short, so it is crucial for companies who are looking to IPO to prepare well in advance. That way they can hit the market when the time is right,” comments Mayur Pau, MENA Growth Markets and Financial Services IPO Leader, EY.
-
News2 months ago
OpenAI Strengthens ChatGPT’s Mental Health Safeguards Ahead of GPT-5 Launch
-
OER Magazines1 month ago
Dossier – ToP 25 Personalities 2025
-
Dossier1 month ago
Arabic Dossier – ToP 25 Personalities 2025
-
Banking & Finance2 months ago
Strong Performance and Strategic Approach: ahlibank announces Its Financial Results for the First Half of 2025
-
Alamaliktistaad Magazines1 month ago
Al-iktisaad, August 25
-
News1 month ago
xAI Open-Sources Grok 2.5, Signaling Accelerated AI Push
-
Economy2 months ago
Najla Zuhair Al Jamali Appointed President of bp Oman
-
News2 months ago
Ooredoo Wins Silver Stevie® Award for Diversity and Inclusion Excellence
You must be logged in to post a comment Login