Recent political and economic upheaval in the GCC region has impacted negatively investor confidence with a number of companies reassessing their initial public offering (IPO) plans and either deferring or shelving future IPOs, PricewaterhouseCoopers said today in a statement.
“The first quarter of 2011 has been very disappointing so far for IPOs in the region with no transactions yet to be reported on any of the GCC exchanges compared to the three offerings in the last quarter of 2010 which raised approximately $1bn,” the international professional services organisation pointed out.
“Increased economic activity, improvements in investor confidence and revival of the GCC equity markets are fundamental to the return of IPOs on the GCC exchanges,” said Steve Drake, Head of PwC Capital Markets Middle East. “There are some positive indicators of economic revival although the political unrest we have seen in parts of the region is a growing market concern for both regional and international investors, which as a result has impacted regional markets,” he said.
No comments:
Post a Comment