When fears of a US-led military strike against Syria over the alleged use of chemical weapons surged in August, they sent tremors through the Gulf’s stock exchanges. Indices plunged. Dubai Financial Market’s main index fell by 7% in one day: its most dramatic one-day fall since the emirate’s 2009 debt crisis.
But when the bourses recovered quickly, analysts took it as further confirmation of an improved sentiment that has been slowly crystallizing over the past year. After a rollercoaster decade, the latest chapter of which was the 2008 crash, the region’s stock markets could be on the up again.
Recent stock flotations hint that this might be the case. Overall, IPO activity has been sluggish in the Gulf over the past few years. There were just 12 IPOs each year in 2009, 2010 and 2012, according to Dealogic. In 2011, the number dropped to just seven. However, eight IPOs were concluded in the first half of this year, and others are in the pipeline.
| Mixed record |
| Top 10 GCC IPOs by size, 2009 to Oct 15 2013 |
| Issuer |
Nationality |
Total value ($mln) |
Industry |
Pricing date |
Exchange |
Bookrunner |
| Vodafone Qatar |
Qatar |
952 |
Telecom |
30 Apr ’09 |
Qatar |
HSBC, Qatar National Bank |
| Saudi National Petrochemical |
Saudi Arabia |
640 |
Oil & gas |
28 Jul ’09 |
Saudi Arabia |
Riyad Bank |
| Nawras – Omani Qatari Telecom |
Oman |
475 |
Telecom |
27 Oct ’10 |
Muscat |
Bank Muscat, Morgan Stanley |
| Aluminium Bahrain |
Bahrain |
372 |
Metal & steel |
8 Nov ’10 |
Bahrain, London |
JPMorgan |
| Al-Tayyar Travel Group |
Saudi Arabia |
365 |
Professional services |
29 May ’12 |
Saudi Arabia |
Samba Capital |
| Al Noor Hospitals |
UAE |
355 |
Healthcare |
21 Jun ’13 |
London |
Deutsche Bank, Goldman Sachs, HSBC |
| Saudi Airlines Catering |
Saudi Arabia |
354 |
Dining & lodging |
9 Jul ’12 |
Saudi Arabia |
Banque Saudi Fransi |
| Knowledge Economic City |
Saudi Arabia |
272 |
Real Estate Commercial Bank |
1 Jun ’10 |
Saudi Arabia |
Saudi National |
| City Cement |
Saudi Arabia |
252 |
Construction |
17 Sep ’12 |
Saudi Arabia |
Riyad Bank |
| Northern Region Cement |
Saudi Arabia |
240 |
Construction |
02 Feb ’13 |
Saudi Arabia |
Arab National Bank |
| Source: Dealogic |
|
"More companies are approaching us to...
