Gulf left waiting for IPO resurgence

Agricultural Bank of China’s planned $23bn-plus initial public offering is being helped by multi-billion-dollar commitments from Qatar and Kuwait’s sovereign wealth funds, but share sales in the Gulf are facing a far more torrid time.

An IPO renaissance in the Gulf has long been said to be imminent. Last month Sameer al-Ansari, head of Shuaa Capital, said the investment bank was aiming to manage a Dh1bn ($272m) share offering in Abu Dhabi early this summer, and predicted that it could reopen the regional IPO market.

However, so far facts have failed to support bullish rhetoric – particularly as the region grapples with the economic downturn. Gulf companies managed to raise only $1.9bn last year, down from $11.7bn in 2008, says Zawya, a regional data provider, and the lull has continued into this year.