IPO prospects remain poor after grim year - FT.com

Bankers in the Middle East, who once profited handsomely on advisory fees for initial public offerings, will be hoping for a miracle this year.

They should not hold their breath. The value of first-time share sales, or IPOs, dropped 69 per cent in the Middle East and north Africa last year, according to a report released this week by Ernst & Young.

With the region’s corporates still coming to terms with debt piles and a tough lending environment, diversifying sources of funding – particularly through share sales – would be a welcome path to rebuilding balance sheets. But bankers expect IPO markets to remain subdued.

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