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February 05 2017, Dubai, UAE: The second Arab IPO Summit will be held between 14th–15th March, 2017 in Dubai. This year's gathering of capital market authorities, financial exchanges, regional companies and banks, will highlight the critical aspects for the implementation of successful IPO (Initial Public Offerings).
As regional economies are currently diversifying away from their dependency on hydrocarbons, IPOs are the most effective method for encouraging foreign and regional investments to fund growth and expansion. IPO related activity is also vital for the overall development of regional capital markets which in turn stimulates further growth in Arab economies. The Arab IPO summit is an important venue where industry experts get together to review key market developments and discuss ways to tap liquidity through IPOs.
Although the first quarter of 2016 saw a pick-up in IPO activity over 2015, global political uncertainty and continued volatility in oil markets weighed on regional investors through the remainder of the year. Investor adopted a ‘wait and watch' approach until there were visible signs of recovery and sustained periods of buoyancy for their issuances. As a result, the IPO activity in 2016 remained largely subdued.
An interesting trend from last year was that some of the key regional issuances were from the healthcare, mining & metals, and consumer durables industries which up until now, were not seen as dominant sectors for regional issuances. This was evident with the MENA region seeing four major IPO deals which included Arabian Food Industries [Domty] ($143.9 million), Middle East Healthcare Company ($471 million), Yamamah Steel Industries Company ($147 million) and L'azurde Company for Jewelry ($127 million). Moving forward, KSA and Egypt are expected to lead IPO activity in the region according to industry experts.
Following developments such as OPEC's decision to curb production, strong liquidity trends in global equity markets and the successful Saudi bond deal (the biggest ever bond sale from an emerging-market nation), the regional markets appeared to have rallied back with confidence.
As for the trend this year, issuers are expected to closely watch the equity market valuations and market performance. According to recent research by KAMCO, Corporate issuers are likely look for leadership from larger issuers in terms of activity as well as firm future timelines from government related entities such as Aramco, all of which would indicate positive trends for flotation related activity.
Organised by UMS Conferences, the Arab IPO summit will focus primarily on how the companies in the region can grow their capital and enhance their financial value through IPOs. Discussions from leading issuers, stock exchanges, investment banks and corporates will highlight key macro-economic developments and their impact on markets. The summit will also serve as a high-level thought leadership platform to exchange information and insights on implementing a successful IPO and provide guidance on financial policies and regulations governing capital raising activities. The event will also explore possible diversification strategies and include detailed discussions on improving the regional markets' liquidity.
Supported by Muscat Securities Market, Egyptian Exchange, Palestine Exchange, Egyptian Financial Supervisory Authority, and sponsored by Aon and Mastercard, the Arab IPO summit will host over 150 participants from leading regional businesses, stock exchanges, banks and regulatory bodies.
The Arab IPO Summit will feature panel sessions from eminent industry experts such as Rashid Al Mansouri, CEO of Qatar Stock Exchange; Nikhil Rathi, CEO of London Stock Exchange; Ahmed Aweidah, CEO of Palestine Exchange; Yarub Awadh Albadi, Head of IPO Unit at Capital Market Authority KSA; Ahmed Saleh Al Marhoon, Director General of Muscat Securities Market and Abdul Aziz Emadi, Listing Director at Qatar Stock Exchange.
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