Middle East leads decline in global IPOs in 1H2018: Global listings in 1H2018 fell 19% y-o-y to a total of 676 IPOs, coming largely on the back of political concerns and market volatility, according to a report from Baker McKenzie. The value of listings globally has also fallen 15% y-o-y to USD 90 bn. EMEA and Asia-Pacific led this decline, with capital raising in the Middle East falling 70% y-o-y in 1H2018 compared to the same period last year to only USD 263 mn. Total listings in the region for the period fell to six transactions from 13 last year, notes the report.

Privatization is the ray of hope? IPO activity in the Middle East is expected to start to pick up in 2H2018 as a result of the privatization drive in the region, said the report. “While the number of IPO transactions during the first half of this year was lower than expected, we still believe that appetite is there, particularly in Saudi Arabia and the UAE … The IPO pipeline includes a number of transactions that aim to hit the market later this year, although it is likely that some of these transactions will spill into 1Q2019,” the report says.

By our count, only two IPOs on the EGX took place in 1H2018 — CI Capital and B Investments in April, and we don’t see a significant number of new listings coming out of the state privatization program this year. Instead, we’re looking at stake sales by already-listed companies, with the first up likely to be Eastern Tobacco Company’s 4% sale. Former Public Enterprises Minister Khaled Badawi told us that the company would sell these additional shares before the end of the month. An investment bank was supposed to have been hired by now, according to Badawi.