Before the financial crisis, equity share sales were the biggest craze in the Gulf since the discovery of oil, with governments forcing companies to shower citizens with cut-price stocks.
The IPO wave crashed when markets plummeted and banks stopped financing share purchases. But now there are signs of recovery with bankers hoping a smattering of share sales in Saudi Arabia and Oman this year could signal that the IPO market is re-emerging from the financial wreckage.
Yet Gulf investors should not count on a return to the supercharged share sales of the pre-crisis years. Then governments wanted to distribute wealth to citizens and business owners were required to offer stock to the public at cheap rates, ensuring blockbuster oversubscriptions and eye-watering returns of up to around 500 per cent following flotation.
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