Egypt is only Mena market to issue IPOs in Q1 2015: EY

Initial public offering (IPO) activity in the Middle East and North Africa (Mena) declined in Q1 2015 after an active Q4 2014, with only two IPOs across the region collectively raising $255.7 million.

Capital raised by Mena firms through IPOs decreased by 80 per cent and the number of IPOs decreased by 60 per cent in Q1 2015, compared with Q1 2014. Similarly, capital raised by Mena firms through IPOs decreased by 97 per cent and the number of IPOs decreased by 75 per cent in Q1 2015, compared with Q4 2014.

Phil Gandier, Mena transaction advisory services leader, EY, says: “The Mena IPO market is expected to be cautious given the recent volatility levels in oil prices and the Mena capital markets. Regional companies are expected to wait and watch the markets closely for the oil price to settle down before launching new IPOs in Q2 2015 and Q3 2015. While there may be some adjustments to government spending plans, the regional markets are expected to stabilise over the rest of the year, with the fundamentals in place for a sustained period of steady IPO activity.”