DUBAI: The value of IPOs fell 83 percent in the Middle East and North Africa this year as issuance ground to a halt in the wake of the global financial crisis, according to a report on Tuesday.
Consultancy Ernst & Young said the value of new offerings sank to $2.06 billion on 15 deals in 2009, from $12.46 billion the year before on an unspecified number of deals.
Activity picked up towards the end of the year with insurance companies leading the way. Four deals were concluded in November and December as three Saudi Arabian insurance firms came to the market. Syria accounted for the fourth IPO.
Bahrain-based Islamic lender Al Baraka s IPO in Syria, valued at $38 million, was the year s biggest offering in the region, the report said.
Analysts expect activity to pick up in – although the fallout from Dubai s debt crisis could dampen investor appetite – with three Saudi companies announcing IPO plans for early next year.
Globally, IPO activity is charging ahead, riding on the rising risk appetite of investors as markets recover from the global financial crisis.
Gulf IPO activity ground to a halt as a result of the financial crisis and only four Middle East companies listed in the third quarter of 2009, raising $872 million, Ernst & Young said in a November report.
The biggest IPO deals globally in 2009 were Brazil s Banco Santander Brasil SA at $8.07 billion and China State Construction Engg at $7.34 billion.
