Back to the complete issue
Wednesday, 8 June 2022

No year for IPOs + The tough times are far from over for EM assets

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.


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)




+0.6% (YTD: -15.9%)



Buy 18.63

Sell 18.71



Buy 18.65

Sell 18.71


Interest rates CBE

11.25% deposit

12.25% lending




-1.2% (YTD: +12.2%)




-0.3% (YTD: +14.8%)




-0.5% (YTD: +5.5%)


S&P 500


+1.0% (YTD: -12.7%)


FTSE 100


-0.1% (YTD: +2.9%)


Euro Stoxx 50


-0.8% (YTD: -11.4%)


Brent crude

USD 120.85



Natural gas (Nymex)

USD 9.40




USD 1,853




USD 30,956

+2.7% (YTD: -32.5%)


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.

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.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.