[ad_1]
DUBAI, May 10 (Reuters) – Middle Eastern companies raised nearly 16 percent of global initial public offering (IPO) proceeds in the first quarter as the region’s 2022 blockbuster momentum continued, consultancy Ernst & Young said on Wednesday. %.
Companies in the region raised $3.4 billion in 10 IPOs in the first quarter. These included the $2.5 billion listing of ADNOC Gas, a subsidiary of Abu Dhabi’s state oil giant, the world’s largest IPO this quarter.
“In these uncertain economic times, IPOs in the MENA region continue to buck global trends, continuing last year’s momentum,” Brad Watson, EY Middle East and North Africa (MENA) strategy and transactions leader, said in a statement.
Middle Eastern companies raised about $21.9 billion in initial public offerings last year, more than half of the EMEA region’s total, according to Dealogic.
First-quarter IPOs in the MENA region were down 33% in number and 14% in value compared with the same period last year.
But that compares with a 61% drop in global IPOs in the first quarter, with 299 companies listing to raise $21.5 billion, EY said.
“At the end of the quarter, six out of 10 MENA IPOs had positive returns relative to their IPO prices,” EY said.
“Saudi Arabia remains the most active market in terms of deal volume, while the largest IPOs continue to be dominated by the energy sector,” said Gregory Hughes, EY Middle East and North Africa IPO and Deal Due Diligence Leader.
ADNOC said on Wednesday it intends to sell a 15 percent stake in its subsidiary ADNOC Logistics and Services (ADNOC L&S) is expected to conduct an initial public offering on the Abu Dhabi Securities Exchange on June 1.
Reporting by Yousef Saba; Editing by Alexander Smith
Our standards: Thomson Reuters Trust Principles.
[ad_2]
Source link