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14-12-10

MENA IPOs fall 79.7% in Q3

(MENAFN) Ernst & Young?s quarterly IPO update report stated that funds coming from initial public offerings (IPOs) in the Middle East and North Africa (MENA) capital markets in this year's third quarter went down by 79.7 percent compared with third quarter of the previous year, reported the Jordan Times. The report also stated that funds from IPOs in 2010 third quarter also went down by 70 percent from funds raised in the second quarter of the same year. Total number of IPO funds raised in 2010 reached $1.2 billion. Managing Partner of Transaction Advisery Services in Ernst & Young MENA, Phil Gandier, said that the only companies in the region that offered IPOs in 2010 were located in Saudi Arabia and Syria. He said this was due to the fact that they were relatively safe from the effect of the negative investor sentiment that was affecting other countries in the region. Gandier also said that, globally, China has the highest share of IPO. In third quarter, the number of global IPOs reached 286, thus raising a total of $52.7 billion compared to $46.8 billion raised in 311 listings in the second quarter of the same year. Global IPOs were most common in the financial sector with a share of 51 percent of funds raised. In second came the materials sector and then the industrials sector.

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