The value of global IPOs has plummeted so far in 2022, falling 71% y-o-y in the first five months of the year as rising interest rates, soaring inflation and geopolitical uncertainty fuel volatility in the financial markets, the Financial Times reports, citing data from Dealogic. Companies raised USD 81 bn during the five-month period, down from USD 283 bn in 2021, while the number of listings has dropped from over 1.2k to 596.

It’s even worse in the US and Europe: The amount raised in IPOs in the US and Europe has plunged 90% to USD 17.9 bn, with just 157 companies going public compared to 628 last year.

“People are not abandoning ship — they are pausing,” said one lawyer who provides advice on IPOs. “Once things stabilize, we will see a return of activity, even if it does not reach last year’s levels.”

Investors are swapping Wall Street for Abu Dhabi: International investors have flocked to the GCC this year, where IPOs are on course for a record first half as surging oil prices and foreign inflows protect the energy-rich region from the turbulence in the global markets.

FROM THE EM-VERSE-

The rebound in emerging-market stocks last month is already in reverse as heightened inflation and hawkish central bank policies prolong the global risk-off, Bloomberg says. The MSCI Emerging Markets Index had rebounded nearly 8% from a two-year low earlier in May, but this month the gauge has reverted to underperforming against developed-market stocks. “It’s too early to say this is the bottom — too early to say the only way is up,” one strategist said.

Also worth noting:

• DP World sells stake to Canadian fund in bid to reduce debt: Dubai logistics company DP World is selling a 22% stake in some of its key assets to Canadian investment fund CDPQ. The fund will invest USD 5 bn in total, with half the amount financed by debt. (Statement)
• Exxon and TotalEnergies are among a group of Western companies close to securing a multi-bn USD Qatari gas project, slated to be one of the largest ever in the industry. Qatar could announce the winners as soon as this weekend. (Bloomberg)
• Binance looking the other way? The world’s largest crypto exchange played host to the laundering of c. USD 2.35 bn in illicit funds in recent years. (Reuters)
• American taps Morgan Stanley: Americana Group, which operates KFC and Pizza Hut in MENA, has added Morgan Stanley to work on its planned IPO, which could take the form of a dual listing in Riyadh and Abu Dhabi. (Bloomberg)

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 511 mn (38.8% below the 90-day average). Local investors were net buyers. The index is down 15.9% YTD.

In the green: GB Auto (+8.5%), Palm Hills Development (+3.4%) and MM Group (+2.7%).

In the red: Housing and Development Bank (-1.3%), Eastern Company (-1.1%) and Rameda Pharma (-0.94%).

Asian markets are largely up in early trading this morning. Futures suggest Wall Street is set to open in the red across the board, while it’s a more mixed picture across the Atlantic, though most major European indices are poised to open in the green.