FINANCIAL NEWS

Revenues from IPOs in MENA plunge 70% in 2011: E&Y

05 Jan 2012

(MENAFN) Ernst & Young said that in 2011, revenues from initial public offerings (IPOs) in the Middle East and North Africa (MENA) region plunged around 70 percent to USD843.9 million, from USD2.8 billion in 2010, reported The National.

The company added that as firms sought other sources of funding, in 2011’s fourth quarter, the amount of money raised in the region’s IPOs dropped 83.5 percent, reaching USD226.1 million from USD1.4 billion in 2010’s same period.

E&Y also said that in 2011, Saudi raised the most in the region through IPOs at USD460.5 million, followed by the UAE with USD271.3 million and Oman with USD63.9 million.

It is worth noting that as Islamic funding including sukuk was the preferred method for fund-raising, low investor interest remained in the region; on the other hand, instability in capital markets would be forecasted to continue in the coming quarter, according to E&Y.

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