Strong catalysts could support IPO activity in Saudi and UAE in 2021

Strong catalysts could support IPO activity in Saudi and UAE in 2021

Kuwait-based Kamco Invest expects the GCC initial public offering (IPO) market to remain active in 2021, given the number of catalysts that could support primary markets within the region.In a report issued Sunday, Kamco Invest said that Saudi Arabia will continue to lead the regional IPO market in 2021 as well, with the Capital Markets Authority (CMA) reportedly mentioning in November that they are reviewing more than 15 applications for listing both in the main market and the Nomu parallel market.In terms of sectors, issuances of newer consumer-linked businesses, and asset light models that focus on digitization, technology disruption, and healthcare that gained market share in 2020 from the impact of COVID-19, could continue to warrant higher valuations.Nevertheless, higher activity in 2021 would still depend on secondary market performance and volatility, the unwinding of the impact of the pandemic, including the effectiveness of the vaccine, and geopolitical situations worldwide.For 2020, the market remained active despite the COVID-19 led market sell-off early in the year, as issuances picked up in the second half, Kamco Invest said.The number of IPOs from the GCC, both on regional and international exchanges, declined to seven issuances in 2020, from 12 in 2019, including the landmark