Tadawul opening may dampen IPOs | Economy | Saudi Gazette:
"Saudi Arabia's decision to open its stock market to direct foreign investment could slow down initial public offerings (IPOs) in the country by making local companies wary of giving up stakes in their business to foreign control.
“There are a lot of family conglomerates with, say, 20 percent on the Tadawul (Saudi stock exchange),” said Khalid Murgian, managing director of Neuberger Berman in Dubai. “It will be anathema to them that some foreign manager(s) can come and tell them how to manage their business. It may have a perverse effect of having fewer companies come to market.”
The opening of the Saudi stock market, which is planned for the first half of 2015, could spur the development of vocal shareholders in the Kingdom, as qualified foreign institutions will be able to exercise voting rights for the first time. Previously, investors outside the Gulf region could only access the Saudi market through swap arrangements, with no voting rights."
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