Abu Dhabi: The Securities and Commodities Authority (SCA) approved Initial Public Offerings (IPOs) from over 10 companies in 2015, however, the companies are yet to finalise on whether and when they will list, given the challenging market conditions.

According to Obaid Al Zaabi, acting chief executive officer at SCA, the approvals were handed in 2015, and span listings on both Abu Dhabi Securities Exchange and the Dubai Financial Market.

“We have over 10 applications for IPOs from companies in the IT (Information Technology) sector, petrochemical sector, financial sector, and services. It’s up to each company to decide when to launch their IPO. We’ve already approved them, but the companies are waiting for markets to improve and for the right time to list,” he told reporters on Tuesday on the sidelines of the Arab Regulators Corporate Governance Forum in Abu Dhabi.

Two weeks ago, the CEO said he expected to see some IPO activity in the UAE this year after a quiet 2015 that was marred by negative sentiment and weak liquidity on the back of plummeting oil prices.

However, analysts have long said that they expected this year to be even more challenging than 2015 as oil prices, actions by the US Federal Reserve, and geopolitics continue to add further pressure and weigh heavily on investor sentiment.

“2016 will continue to be a challenging year for the primary market offerings. Any potential IPOS even in attractive sectors might be put-off for lack of better valuations. We don’t expect much appetite for IPOs [in 2016] as valuations in blue chip stocks is beginning to look attractive,” said Vijay Harpalani, fund manager at Al Mal Capital, in an earlier interview with Gulf News.

SCA’s CEO on Tuesday also discussed corporate governance of publicly-listed companies, saying that the Authority was aiming to boost governance in 2016, with plans to update its rules in the second half of this year. The updates will include factors such as women’s participation as members of companies’ board of directors, and minority rights.

SCA will also issue new rules this year regarding procedures for IPOs, Al Za’abi said.