Why Analysts Expect the GCC IPO Market to Recover in H2?

Why Analysts Expect the GCC IPO Market to Recover in H2?

Published July 5th, 2020 - 07:00 GMT











Highlights





The optimism, which was witnessed at the start of 2020 after the Saudi Aramco IPO, dented by the coronavirus pandemic and its subsequent effect on oil prices and the equity market.





The GCC is expected to see a modest recovery in initial public offerings (IPOs) in the second half of 2020 after registering just two IPOs during the January-June 2020 period.

Market experts and analysts said Saudi Arabia and the UAE will lead the IPO activity as eight IPOs are expected to be launched by these two Gulf countries in the second half or by early 2021.

The GCC IPO market remained subdued in the first half of 2020 due to Covid-19, but it is projected to fare better when compared to the first half of this year. It is expected that five Saudi companies will launch their IPOs during the July-December 2020 period, while three UAE firms may also raise money through IPOs by early next year.

The optimism, which was witnessed at the start of 2020 after the Saudi Aramco IPO, dented by the coronavirus pandemic and its subsequent effect on oil prices and the equity