Middle East's IPO activity takes a hit

Funds raised via initial public offerings (IPOs) in the Middle East fell to just $83.6 million (Dh306.8m) in the first quarter compared to $3.98 billion a year ago due to poor investor sentiment.

The Ernst and Young report said only two IPOs came to market in the first three months of the year, compared to 13 in the same period in 2008.

"First quarter results show that the crisis has had a deep impact on the IPO market and the time-frame for recovery will be much longer than initially thought a year ago," said Gil Forer, global director of IPO initiatives at E&Y.

Saudi Arabia, the UAE and Egypt were the top three markets for IPOs in 2008, accounting for 78 per cent, 10.3 per cent and 4.7 per cent respectively.

"Of the 136 companies that have announced IPO plans, we do not expect more than a handful to list," said Phil Gandier, head of transaction advisory services at E&Y Middle East.

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