Capital markets in the GCC would appear to have been impacted by the current regional political and economic unrest with company valuations discounted compared to prior levels, increasing finance costs and falling investor risk appetite being a feature of the first quarter of 2011.
PricewaterhouseCoopers (PwC), the leading international professional services organisation, believes that 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.
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 $1 billion (Dh3.67 billion).
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