Monday 4 March 2024

EFG Hermes sees Gulf IPO frenzy from private sector in 2024 | Reuters

EFG Hermes sees Gulf IPO frenzy from private sector in 2024 | Reuters

Emerging market-focused investment bank EFG Hermes (HRHO.CA), opens new tab is "very bullish" on Gulf markets this year, expecting more, smaller initial public offerings (IPOs) from the region from a year earlier, Mostafa Gad said on Monday.

Smaller deals are likely to become the norm in 2024 as the private sector becomes the main issuer seeking capital, a boon for mid-market focused investment banks like EFG Hermes and a change from large bulge bracket deals from government privatisations, investment banking head Gad said.

"The inflow [of issuers] is coming more from the private sector. For banks that require a certain amount of a certain magnitude of offerings for them to justify their presence, maybe they can struggle a bit", Gad said in an interview with Reuters.

Gad said his bank tends to focus on deals between $300 million and $700 million, and added he would like to see the team, which currently has 50 bankers covering the region, expand and is looking to hire junior analysts.

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