Initial public offerings in the Gulf are proving resilient to the volatility hurting deals in other markets, as high oil prices, stable economies and abundant liquidity fuel activity.
Pharmacy retail chain Nahdi Medical Co. gathered enough demand to cover what is set to be Saudi Arabia’s biggest IPO since oil giant Aramco within hours of opening its books, Bloomberg News reported. In Dubai, the road-toll collection system and utility Dubai Electricity & Water Authority are also gearing up for large listings.
No IPO plans in the region have been derailed by market volatility so far, while appetite for listings in Europe, the U.S. and Asia has all but dried up.
Russia’s invasion of Ukraine has effectively shut IPO markets, exacerbating an already slow start to the year. Several companies pulled deals, while those that went ahead had to temper valuation expectations as equity benchmarks in Europe, Asia and the U.S. sagged. The Gulf is a rare exception, as surging local stock markets on the back of soaring oil prices support dealflow.
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