Four MENA IPOS raise $349.9m in Q3 2018

recorded one deal each. The IPO of Cairo for Investment & Real Estate Development Company raised $69.7m. The IPO programme laid out by the Egyptian Government, which plans to list public sector companies on its stock exchange, has strengthened the prospects of future IPOS in the country that would promote local and foreign capital inflows. The government also has plans to introduce an IPO programme offering minority stakes of state owned and private companies in various sectors, in the next three to five years.

Further, in North Africa, the Tunis Stock Exchange saw the IPO of Tunisie Valeurs in Q3 2018 raising $7.6m, following a yearlong gap of no activity. The improved classification of Tunisia by the FTSE Russell and MSCI, along with the World Federation of Exchanges (WFE) member status, received in October 2018, has reinforced the attraction of Tunisia for foreign investment.

Globally, IPO activity saw a significant slowdown in Q3 2018, with 302 IPOS raising $47.1b, marking a decrease of 15 per cent and 2 per cent respectively, compared to Q2 2018. Current market and investor confidence fluctuations are causing companies to delay or pull out of planned IPOS in Q4 2018 despite the recovery in oil prices. Reasons for this could be current market and global trade uncertainties. “Globally, the third quarter has been a relatively quieter period for IPO activity driven by geo-political tensions, trade issues between the US and China and the looming exit of the UK from the European Union, all of which have dampened investor confidence in the short term,” concludes Phil.