Potential issuers need to get real about prices they can fetch if the telecoms, retail and energy sectors, as well as prized government assets, are to lead a revival in Gulf initial public offerings (IPOs).
Thin volumes and high trading volatility — sparked mainly by regional retail investors — have sunk valuations on the region's exchanges and kept international institutions on the sidelines, awaiting clarity on companies' debt challenges.
"If companies are to sell assets or equity voluntarily, we need more realism around valuations and current market conditions," said Paul Reynolds, head of equity and debt advisory at Rothschild in the Middle East.
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