Business | Investment
Saudi Arabia tops Gulf IPOs in second quarter
Initial public offerings in the Gulf raised more than $3.5 billion in the second quarter and the entire Middle East raised $3.9 billion, according to a report by Ernst & Young.
- By Babu Das Augustine Banking Editor
- Published: 23:50 October 9, 2007
- Image Credit:
- Ernst & Young report shows $3.5b raised in regional offerings.
Dubai: Initial public offerings in the Gulf raised more than $3.5 billion in the second quarter and the entire Middle East raised $3.9 billion, according to a report by Ernst & Young.
Saudi Arabia is ranked at the top in terms of funds raised with about $2.5 billion followed by the UAE and Qatar. In 2006, $8 billion was raised through 45 IPOs in the Middle East, whereas the region has seen $4.8 billion raised through 33 offerings in the first half of this year.
Globally, 531 IPOs closed during the second quarter of 2007, raising $88 billion. Of the 531 IPOs across the globe during the period, 20 were in the Middle East.
"The three largest offerings in the second quarter of 2007 were Saudi Kyan Petrochemical Company's offering of $1.8 billion, followed by Deyaar Development Company's $ 883 million offering in the UAE and Saudi Arabia's Jabal Omar Development Company offer of $537 million. This reflected the growing capital base and confidence in the regional markets," said Omar A. Bitar, Ernst & Young's managing partner, Business Advisory Solutions, Middle East,
According to the report, much of the IPO activity globally was driven by emerging markets. Brazil, Russia, India and China together raised $35 billion in 90 IPOs and accounted for four of the five largest IPOs in the second quarter.
Anticipating that the Middle East, also as an emerging market, will experience growth in terms of IPO performance, Omar said, "The Middle East is expected to continue to grow in the next few years, with many IPOs waiting in the pipelines."
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