Friday 6 November 2009

Gulf firms test IPO market, activity still tepid

Plans for three Gulf IPOs announced in the past week don't change the picture of a slow pickup in company flotations in the region.

'The broader market needs to stabilize first and valuations need to become attractive for owners to sell,' said Jithesh Gopi, head of research at SICO investment bank in Bahrain, who sees a chance of more IPO activity in the second half of next year, rather than earlier on.

Gulf IPO activity ground to a halt as a result of the financial crisis and only four Middle East companies listed in the third quarter of 2009, raising $872 million, Ernst & Young said in a report this week.

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