More companies in the Middle East and North Africa are expected to go public in 2021 after the number of listings and money raised dropped last year, according to the consultancy EY.
Renewed optimism for a gradual pick-up in public offerings in regional markets is driven by regulatory changes that support public companies, EY said in a report on listings in the region. The consultancy expects more than 10 initial public offerings (IPOs) in Saudi Arabia this year and accelerated listing plans by private and state-owned companies in Egypt.
"As 2021 begins, we believe that continued fiscal stimulus measures, an abundance of liquidity, and growing confidence in Covid-19 vaccination programmes will sustain positive IPO momentum," Matthew Benson, EY Mena strategy and transactions leader, said.
In 2020, the Mena region recorded nine IPOs that raised $1.86 billion, a 40 per cent drop in total issuances and 94 per cent decline in total proceeds compared to 2019. Six of the nine IPOs were in the real estate sector, with the remainder in healthcare, consumer stables and insurance sectors, according to the report.
Despite a subdued year, the fourth quarter of 2020 saw a rebound in activity after a quiet second quarter and one IPO in the third quarter, with four IPOs in Mena raising a total of $925 million.
“A decline in economic growth and significant disruption across various industries caused by the Covid-19 pandemic, together with a decrease in demand for oil, had a considerable impact on Mena stock performances in 2020," Mr Benson said.
This year, however, the outlook for IPO markets in the Gulf looks promising, according to EY.
Saudi Arabia is expected to see more than 10 listings in 2021 – with the most notable development being the region’s largest exchange, Tadawul, preparing for its own IPO during the year.
"The outlook for the kingdom’s markets remains positive for 2021 and as Tadawul continues its growth and status in the international capital markets, it proves to be an important avenue for investors looking to deploy domestic capital," Abdulrahman Moulay Albizioui, EY Saudi Arabia strategy and transactions leader, said.
The UAE, which made regulatory overhauls last year to further encourage listings on the local markets, is also expected to see an uptick in IPOs.
"The 2020 amendments to the Companies Law bode well for the overall development of the capital market in the UAE," Alison Hubbard, EY Mena law leader, said.
"Increased flexibility in foreign ownership, changes to the nationality requirements of board members and the increase in the proportion of share capital that owners may now sell, to name a few, are expected to lead to an increase of IPO candidates in the Emirates."
IPO activity is also expected to rise In Egypt, with numerous issuers in the pipeline, EY said.
"Looking ahead, private as well as state-owned companies are expected to play a greater role in accelerating their IPO plans in 2021," Sherif El -Kilany EY country managing partner for Egypt, said, adding that the rollout of Covid-19 vaccines will also help help momentum.
Globally, IPO numbers were up 19 per cent in 2020, while proceeds increased 29 per cent, from 2019. Last year saw 1,363 IPOs with total proceeds of $268.0bn, the highest proceeds since 2010, when $290.2bn was raised through 1,361 listing deals.
In 2020, the most active sectors were technology, industrials and health care, which accounted for 59 per cent of global IPO deals and 64 per cent of proceeds.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
ONCE UPON A TIME IN GAZA
Starring: Nader Abd Alhay, Majd Eid, Ramzi Maqdisi
Directors: Tarzan and Arab Nasser
Rating: 4.5/5
COMPANY%20PROFILE
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Founder: Ayman Badawi
Date started: Test product September 2016, paid launch January 2017
Based: Dubai, UAE
Sector: Software
Size: Seven employees
Funding: $170,000 in angel investment
Funders: friends
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Other ways to buy used products in the UAE
UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.
Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.
Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.
For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.
Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.
At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.
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Napoleon
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COMPANY%20PROFILE%20
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The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
The specs: 2018 Maserati GranTurismo/GranCabrio
Price, base Dh485,000 (GranTurismo) and Dh575,000 (GranCabrio)
Engine 4.7L V8
Transmission Six-speed automatic
Power 460hp @ 7,000rpm
Torque 520Nm @ 4,750rpm
Fuel economy, combined 14.3L (GranTurismo) and 14.5L (GranCabrio) / 100km
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
The biog
Name: Sarah Al Senaani
Age: 35
Martial status: Married with three children - aged 8, 6 and 2
Education: Masters of arts in cultural communication and tourism
Favourite movie: Captain Corelli’s Mandolin
Favourite hobbies: Art and horseback ridding
Occupation: Communication specialist at a government agency and the owner of Atelier
Favourite cuisine: Definitely Emirati - harees is my favourite dish
Racecard
5pm: Al Maha Stables – Maiden (PA) Dh80,000 (Turf) 1,600m
5.30pm: Wathba Stallions Cup – Maiden (PA) Dh70,000 (T) 1,600m
6pm: Emirates Fillies Classic – Prestige (PA) Dh100,000 (T) 1,600m
6.30pm: Emirates Colts Classic – Prestige (PA) Dh100,000 (T) 1,600m
7pm: The President’s Cup – Group 1 (PA) Dh2,500,000 (T) 2,200m
7.30pm: The President’s Cup – Listed (TB) Dh380,000 (T) 1,400m
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
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