Could 2024 be another year of the Gulf IPO boom? Mideast IPOs are on track to record their third-strongest year since 2007, with the market expected to continue growth in 2024 driven by government reforms, investment demand, and strong demand, Bloomberg wrote. “The outlook is very strong for MENA IPOs in 2024,” Bank of America's Christian Cabanne said, “in 2024 we expect to see more private companies come to market, including in the United Arab Emirates.”

2023 at a glance: Middle East IPOs this year have raised some USD 10.5 bn, less than half the USD 23 bn raised in 2022, according to Bloomberg data. Gulf offerings made up the biggest chunk of the figure raised, accounting for around 45% of total IPO volumes in EMEA this year and 51% the year before. Kicking off the year with the multi-bn USD IPO of Adnoc’s gas unit, 2023 has been a busy year for the Gulf IPO market, the latest of which was Dubai Taxi’s IPO.

In the cards for 2024: Companies eyeing up offerings in 2024 include Saudi low cost airline Flynas, supermarket chain Spinneys Dubai, owner of shisha brand Al Fakher, tobacco firm Advanced Inhalation Rituals, and startups like e-commerce firm Floward and buy-now-pay-later company Tabby.

It hasn’t been a good IPO year for all: Globally first-time share sales are on track for their worst year since 2009.

Could the war in Gaza impact investor appetite? The MSCI GCC Countries Index has rebounded 12% after falling 3.2% following the outbreak of war in Gaza at the beginning of October as investors regained confidence in the market. “If things were to escalate and if the theater of operations were to widen, then definitely that could have a detrimental effect on risk premium and how investors view the region,” Franklin Templeton’s Salah Shamma said.

ALSO WORTH NOTING-

  • China unveils future investments: The country’s National Development and Reform Commission has identified a second batch of public investment projects under a USD 140 bn spending plan aimed at boosting growth. (Reuters)
  • OpenAI is targeting a fresh funding round at a valuation of over USD 100 bn. Discussions are still in early stages with the terms, valuation, and timing of the funding round still up in the air. (Bloomberg)

EGX30

24,305

-2.1% (YTD: +66.5%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

11,622

-0.7% (YTD: +10.9%)

ADX

9,490

0.0% (YTD: -7.1%)

DFM

4,023

+0.4% (YTD: +20.6%)

S&P 500

4,755

+0.2% (YTD: +23.8%)

FTSE 100

7,698

0.0% (YTD: +3.3%)

Euro Stoxx 50

4,521

-0.1% (YTD: +19.2%)

Brent crude

USD 79.07

-0.4%

Natural gas (Nymex)

USD 2.61

+1.5%

Gold

USD 2,069

+0.9%

BTC

USD 43,681

-0.6% (YTD: +164.9%)

THE CLOSING BELL-

The EGX30 fell 2.1% at Thursday’s close on turnover of EGP 3.7 bn (14.1% above the 90-day average). Local investors were net sellers. The index is up 66.5% YTD.

In the green: Alexandria Containers and Goods (+4.7%), Mopco (+1.7%).

In the red: Credit Agricole (-5.7%), Egypt Kuwait Holding (-5.1%) and Palm Hills Development (-5.1%).

Tags: