The MENA region’s IPO activity will also pick up over the next 12 months following a weak third quarter, Ernst & Young said in its Global IPO Update 3Q2019 (pdf). “IPO activity is expected to progress cautiously, with an optimistic outlook,” the report says, citing Kuwaiti equity upgrades to the MSCI index, Saudi Arabia’s planned privatization drive, and amendments in the UAE to list freezone companies.

We also have a privatization program don’t forget, one that is seemingly on hiatus until the new year. Public Enterprises Minister Hisham Tawfik said last week that Alexandria Container and Cargo Handling and Abu Qir Fertilizers are ready to sell additional shares in the EGX, and are waiting on the results of the Aramco stake sale before moving ahead. Heliopolis Housing and Development is also slated to go public next year after the company has awarded the 10% stake + management rights contract to one of the bidders.

The third quarter was weak for MENA IPOs, with only three companies listing between July and September with total proceeds of USD 256 mn. “Investors returned to a more cautious posture” following a strong second quarter, the report says

Globally, it’s much of the same story: Global headwinds — including the US-China trade war, ongoing protests in Hong Kong, and the prospect of a hard Brexit — have all put a damper on investor sentiment during the past quarter. The number of IPOs going to market in 9M2019 dropped 26% y-o-y, while the proceeds from these transactions dropped 24% y-o-y. The third quarter of the year, which the advisory firm notes is usually a slow period for IPOs, saw a total of 256 IPOs, marking a 16% dip from the previous quarter. However, EY says the “backlog of high-quality IPOs continues to grow as issuers wait for better market sentiments.”