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Thursday, 2 June 2022

Gulf IPO market on course for record first half

No IPO winter in the GCC, thanks to rising oil prices: Gulf IPOs are on course for a record first half as surging oil prices and foreign inflows protect the energy-rich region from the turbulence that has threatened listing in other parts of the world, Bloomberg reported. Companies in the region have already raised USD 11.4 bn so far this year, beating out any other first-half in just the first five months, according to data compiled by the business newswire.

This is set to rise further: Abu Dhabi-based petrochemicals firm Borouge will start trading on the ADX on Monday after raising USD 2 bn in its IPO this week.

Thank the international investors, too: “IPOs have held up very well in the GCC due to high interest from international and regional investors in recent offerings and in the upcoming ECM pipeline,” said Citigroup’s Rudy Saadi. “We’ve seen continuous net foreign inflows across all GCC exchanges, even during the recent selloff.”

Down

EGX30

10,084

-0.7% (YTD: -15.6%)

Up

USD (CBE)

Buy 18.58

Sell 18.66

Up

USD at CIB

Buy 18.60

Sell 18.66

None

Interest rates CBE

11.25% deposit

12.25% lending

Down

Tadawul

12,766

-1.2% (YTD: +13.2%)

Down

ADX

9,895

-1.6% (YTD: +16.6%)

Up

DFM

3,407

+1.8% (YTD: +6.6%)

Down

S&P 500

4,101

-0.8% (YTD: -14.0%)

Down

FTSE 100

7,533

-1.0% (YTD: +2.0%)

Down

Euro Stoxx 50

3,759

-0.8% (YTD: -12.5%)

Up

Brent crude

USD 115.90

+0.3%

Up

Natural gas (Nymex)

USD 8.70

+6.8%

None

Gold

USD 1,848.70

0.0%

Down

BTC

USD 29,564

-6.7% (YTD: -35.8%)

THE CLOSING BELL-

The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 653 mn (22.6% below the 90-day average). Foreign investors were net sellers. The index is down 15.6% YTD.

In the green: Palm Hills Development (+5.5%), Cleopatra Hospital (+4.6%) and Rameda (+1.9%).

In the red: Ibn Sina Pharma (-4.3%), MM Group (-3.8%) and GB Auto (-3.7%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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