"Across the Mena region, IPO
activity is expected to progress cautiously, with an optimistic outlook owing to events and themes such as the MSCI and FTSE inclusions, privatization drives, and government initiatives," added Hughes.
Once the account has been approved, the investor can participate in the LSI program whenever there is an IPO
This facility was introduced with the objective of facilitating new investors and encouraging maximum participation of retail investors in the IPO
. Around 900 new investors participated in the Inter-loop IPO
through this facility, which is a testament of the success of pilot phase.
To help increase transparency, the government plans to retain minority interests in the businesses and undertake IPOs
and other transactions for a certain percentage of each asset.
"Although the IPO
market in the region has picked up in 2017 and 2018, corporate issuers continue to look for reduced volatility in oil prices, and a stable near term outlook for secondary markets within the region, to take to the primary market," said Faisal Hasan, head of investment research at Kamco.
The highest correlation of 0.427 is reported between trading volume on the first day and demand of IPOs
Furthermore, Oman's Muscat Securities Market (MSM) had a single IPO
listing for Dhofar Generating Company in the power and utilities sector raising $52.0m.
Gregory Hughes, MENA IPO
leader at EY said: 'Although oil prices have increased, MENA countries are still feeling the impact of the significant drop in oil prices in recent years.
activity is poised for further growth in 2018, especially with government and quasi-government owned assets preparing to go public in Kuwait, Egypt, KSA and the UAE.
Tadawul was the largest in terms of IPO
volume, witnessing IPOs
of three Real Estate Investment Trusts (REITs) (38 per cent of total IPO
volume in Q4), raising $209 million.
Thanks to continued investor interest across a wide spectrum of sectors, a high proportion of IPOs
upsized and priced above or at the high end of their ranges, PwC reported.