** #7 MENA IPO activity rose 21.1% y-o-y in terms of value in 3Q2018, with four IPOs raising USD 349.9 mn during the quarter, according to EY’s Q3 2018 MENA IPO Eye report. IPO activity, however, declined 33.3% y-o-y, EY said press release. “In light of fluctuating oil prices and headwinds in the economy, IPO activity in the MENA region has been slow from Q1 to Q3 2018,” said EY’s MENA transactions leader, Phil Gandier. “However it is positive to see that IPO value increased year-on-year in Q3, especially when we’ve seen several entities across MENA delaying their plans for IPOs in 2018 due to various factors including (but not limited to) regulatory and global trade concerns and uncertain market conditions in a rising interest rate environment.”

Egypt’s sole IPO in 3Q18 was CIRA’s EGP 1.244 bn listing in October. Tunisia, Saudi Arabia, and Oman also had a single IPO listing each. “Saudi Arabia led the MENA IPO activity in Q3 with the IPO of Leejam Sports Company on the Saudi Stock Exchange, which raised USD 220.6 mn, making it the biggest IPO in the third quarter.”

The region’s IPO pipeline looks like it will pick up steam again over the next few years, EY says, particularly in Oman, where the next three years will see up to six power generation and water desalination companies going to market. Egypt’s state privatization program, which has “strengthened the prospects of future IPOs in the country that would promote local and foreign capital inflows,” is also reason for optimism. Meanwhile, Abu Dhabi’s stock exchange is “connecting with seven companies that have IPOs on their agenda.”