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Tuesday, 23 August 2022

The US IPO market heads towards one of its worst years ever + EFG gets UAE IPO mandate

2021 was a record year for IPOs in the US. 2022 could turn out to be the worst: The US IPO market is heading for its worst year in decades as rising interest rates, soaring inflation and the war in Ukraine rock financial markets. Traditional IPOs have raised a meager USD 5.1 bn so far this year, compared with a historical average of USD 33 bn usually raised at this point of the year, according to Dealogic data cited by the Wall Street Journal.

A year is a long time in finance: This time last year, more than USD 100 bn had been raised by IPOs during a boom that saw investors rushing to put their money into companies with sky-high valuations that benefited from unprecedented pandemic-era stimulus.

IPO advisers expect the drought to continue through the end of the year, as companies delay plans to go public until the markets stabilize.

IPO WATCH CLOSER TO HOME- Emirati foreign exchange company Al Ansari Exchange has hired EFG-Hermes and Emirates NBD Bank to quarterback its planned IPO in Dubai, Bloomberg reports, citing sources it says have knowledge of the matter. The sources said that the firm could list in 1Q 2023, but that the timing is subject to change as preparations for the IPO are still underway. Representatives for all involved parties declined to comment on the matter.

Al Ansari is one of the largest money-exchange firms in the UAE, with more than 200 branches across the country. It also offers remittance transfers and corporate services such as payroll solutions, according to its website.

Energy chaos in Europe: European gas, electricity and coal prices all surged to record highs yesterday as the news that Russia plans to close the vital Nordstream 1 gas pipeline for three days at the end of the month further raised concerns about Europe’s dire energy situation, Bloomberg reports.

Putting this in perspective: European gas futures are currently more than 10x higher than they were this time last year.


  • Mega rate hike in Israel: Israel raised its policy rate to 2% in its biggest rate hike since 2011 as it looks to bring down inflation, which has hit its highest level since 2008. (Bloomberg)
  • Erdonomics is alive and kicking: Turkey has ruled out any future interest rate hikes in spite of inflation soaring to 80%, after surprising markets with a 100-bps rate cut last week. (Bloomberg)
  • Biden wants oil exporters to ramp up production. Oil exporters may soon do the opposite: Saudi Energy Minister Prince Abdulaziz bin Salman said the OPEC+ alliance of oil exporters could cut production in order to address the “disconnect” between physical and paper barrels, which he said was causing “extreme” price volatility. (Bloomberg)




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The EGX30 fell 0.9% at yesterday’s close on turnover of EGP 1.54 bn (47.6% above the 90-day average). Foreign investors were net sellers. The index is down 14.3% YTD.

In the green: Madinet Nasr Housing (+13.3%), Palm Hills Development (+3.7%) and Heliopolis Housing (+2.7%).

In the red: Credit Agricole Egypt (-3.3%), Rameda (-2.5%) and Ibnsina Pharma (-2.4%).

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