GCC IPOs could be delayed as coronavirus outbreak hurts investor appetite – ZAWYA

GCC IPOs could be delayed as coronavirus outbreak hurts investor appetite – ZAWYA

" we may now see some IPOs being pushed back due to the spread of coronavirus and uncertainties in the oil market.". Saudi Arabia slashed crude prices for April and planned output hikes after Russia refused to support deeper oil production cuts.. "Oil price volatility and indices like the OIV index are at lifetime highs and will simply have to come down for both corporate issuers and investment bankers to reassess IPO plans in the region," Thomas Mathew, Assistant Vice President, Kamco Invest Research, told Zawya.. The value of the IPO increased to $29.4 billion after Aramco exercised its greenshoe option and issued 450 million additional shares, worth $3.8 billion.. According to EY's report, global IPO exchange activity also picked up in Q4 2019, when 353 IPOs raised $84.5 billion, a 25 percent increase in IPO volumes compared with Q1 2019.. "Both the global market and the MENA market saw activity pick up during Q4 2019," said Matthew Benson, MENA Transaction Advisory Services Leader at EY. ". The trend over multiple quarters indicates a recent slowing down in overall IPO activity; in the MENA region, this has been driven by the decline in REITs and Nomu listings in Saudi Arabia