{"id":624804,"date":"2018-09-19T04:12:30","date_gmt":"2018-09-19T04:12:30","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/19\/could-the-emerging-markets-sell-off-close-the-fall-ipo-window-earlier-than-expected\/"},"modified":"2018-09-19T04:12:30","modified_gmt":"2018-09-19T04:12:30","slug":"could-the-emerging-markets-sell-off-close-the-fall-ipo-window-earlier-than-expected","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/19\/could-the-emerging-markets-sell-off-close-the-fall-ipo-window-earlier-than-expected\/","title":{"rendered":"Could the emerging markets sell-off close the fall IPO window earlier than expected?"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>**#1 IPO WATCH- Could the EM Zombie Apocalypse close the fall IPO window earlier than expected? <\/strong>As we <a href=\"https:\/\/enterprise.press\/stories\/2018\/09\/05\/what-were-tracking-on-05-september-2018\/\">first suggested two weeks ago<\/a>, analysts are concerned that negative sentiment on global emerging markets could drive investors away from a wave of share sales expected on the Egyptian Exchange in the coming months, <a href=\"https:\/\/www.reuters.com\/article\/egypt-economy\/egypt-sees-surge-in-share-offerings-testing-market-idUSL5N1VZ42J\">Reuters reports<\/a>. \u201cA realistic good scenario is that you stick to your timeline and you\u2019re able to sell your entire pipeline of offerings at very compelling valuations,\u201d says our friend Wael Ziada, founder of <a href=\"https:\/\/www.linkedin.com\/company\/zilla-capital\/\">Zilla Capital<\/a> and former head of research at EFG Hermes. \u201cA bad scenario is that if there is a deep, deep crisis in emerging markets, you may have to pull some of these offerings.\u201d<\/p>\n<p><strong>Who is in the queue? <\/strong>Private sector players including education outfit <a href=\"https:\/\/enterprise.press\/stories\/2018\/08\/28\/cira-announces-plans-to-list-37-48-stake-on-the-egx\/\">CIRA<\/a>, consumer and structured finance provider <a href=\"https:\/\/enterprise.press\/stories\/2018\/08\/28\/sarwa-capital-to-list-40-of-its-shares-by-early-4q2018\/\">Sarwa Capital<\/a>, and <a href=\"https:\/\/enterprise.press\/stories\/2018\/06\/24\/rameda-to-offer-up-to-45-of-its-shares-on-egx\/\">Rameda Pharma<\/a> are all exploring fall IPOs, and as many as <a href=\"https:\/\/enterprise.press\/stories\/2018\/09\/18\/egypt-on-track-to-sell-stakes-from-five-state-owned-companies-before-years-end-share-prices-to-range-within-10-of-market-average\/\">five state-owned companies<\/a> are expected to tap the EGX before the end of the year.<\/p>\n<p><strong>Appetite for the share sales will shed light on the odds Egypt can withstand the EM crisis if it gets any deeper.<\/strong> Some analysts believe that the government \u201cwas stretching the ability of banks managing the offerings and the appetites of investors\u201d with its targets for the privatization program, from which it hopes to raise EGP 10 bn by the end of FY2018-19. Private sector offerings could surpass that, says Beltone\u2019s Mohamed Elakhdar, who believes that \u201cpeople are viewing Egypt differently than the rest of emerging markets.\u201d CI Capital\u2019s Hany Farahat agreed that the appetite exists, but that \u201cthe key challenge is related to the process, how these transactions have to be structured and marketed to investors. This is what could make them a big success or failure.\u201d Both firms are advising on IPOs due to tap the market this fall.<\/p>\n<p>All of this comes as <strong>sentiment on global growth is at its worst level since December 2011. <\/strong>Investor sentiment on global economic growth has \u201cworsened significantly,\u201d according to a Bank of America Merrill Lynch report, which found that investors have been <strong>trimming exposure to EM in favour of cash holdings<\/strong>. Some 24% of those surveyed in the report, which was <a href=\"https:\/\/www.reuters.com\/article\/us-funds-survey-baml\/investors-raise-cash-buffers-as-gloom-gathers-over-global-economy-baml-survey-idUSKCN1LY1HB?il=0\">picked up by Reuters<\/a> and the <a href=\"https:\/\/www.ft.com\/content\/2af0f5aa-bb2b-11e8-94b2-17176fbf93f5\">Financial Times<\/a>, believe that global growth will slow down in the coming year, with a looming trade war between the US and China being the main risk factor. Other factors driving the negative outlook include the persistence of the emerging market sell-off and the uncertainty European markets face after Brexit.<\/p>\n<p><strong>Wait \u2014 it gets worse: <\/strong>The boss of Emirates airlines thinks <strong>we\u2019re looking at a mini-financial crisis within 2-3 years<\/strong> as \u201c<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-09-18\/global-economy-to-witness-a-major-reset-emirates-clark-says?srnd=premium-middle-east\">there is going to be a major reset<\/a>.\u201d Celebrity hedge fund boss Ray Dalio agrees, saying it <a href=\"https:\/\/www.businessinsider.com\/ray-dalio-bridgewater-debt-crisis-downturn-coming-about-two-years-2018-9\">feels a lot like 1937 at the moment<\/a> and that a downturn is coming in the next two years.<\/p>\n<p><strong>The silver lining? <\/strong>The EM Zombie Apocalypse is overdone, Goldman Sachs Asset Management has signalled by <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-09-18\/goldman-fund-buys-turkey-argentina-bonds-says-rout-overdone?srnd=premium-middle-east\">taking positions in Turkey and Argentina<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>**#1 IPO WATCH- Could the EM Zombie Apocalypse close the fall IPO window earlier than expected? As we first suggested two weeks ago, analysts are concerned that negative sentiment on global emerging markets could drive investors away from a wave of share sales expected on the Egyptian Exchange in the coming months, Reuters reports. \u201cA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-624804","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"ed15099c-d4ab-43dd-877e-c644e1d90520","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[624797],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Could the emerging markets sell-off close the fall IPO window earlier than expected? - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/09\/19\/could-the-emerging-markets-sell-off-close-the-fall-ipo-window-earlier-than-expected\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Could the emerging markets sell-off close the fall IPO window earlier than expected?\" \/>\n<meta property=\"og:description\" content=\"**#1 IPO WATCH- Could the EM Zombie Apocalypse close the fall IPO window earlier than expected? 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The initial public offering of petroleum industry contractor Enppi might take place in 1H2019, or as early as before Ramadan begins in May, Oil Minister Tarek El Molla tells Al Shorouk. Public Enterprises Minister Hisham Tawfik told us earlier this week that\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/3\/1803.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":623172,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/10\/24\/has-egypts-fall-ipo-season-just-come-to-an-end\/","url_meta":{"origin":624804,"position":2},"title":"Has Egypt\u2019s fall IPO season just come to an end?","author":"enterpriseam admin","date":"24 October 2018","format":false,"excerpt":"** #1 The fall equity raising season is officially over. The state privatization program was not the only victim of the emerging markets selloff, according to Reuters\u2019 Patrick Werr. At least three IPOs tentatively for the fourth quarter of this year have been postponed, according to an investment banker involved\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":570733,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/04\/13\/banque-du-caire-postpones-ipo-on-market-turmoil-chairman\/","url_meta":{"origin":624804,"position":3},"title":"Banque du Caire postpones IPO on market turmoil -chairman","author":"enterpriseam admin","date":"13 April 2020","format":false,"excerpt":"IPO WATCH- Banque du Caire postpones IPO on market turmoil, chairman confirms: State-owned Banque du Caire (BdC) has shelved plans to debut 20-30% of its shares on the EGX in April thanks to fallout from the covid-19 pandemic, Chairman Tarek Fayed confirmed to Al Masry Al Youm in an interview\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":637409,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/15\/banque-du-caire-ipo-expected-in-1h-2018\/","url_meta":{"origin":624804,"position":4},"title":"Banque du Caire IPO expected in 1H 2018","author":"enterpriseam admin","date":"15 November 2017","format":false,"excerpt":"IPO WATCH- EFG Hermes expects Banque du Caire to IPO in 1H2018, after the transaction was initially expected to take place last fall, Co-head of Investment Banking Mostafa Gad told AMAY. Gad attributed the delay to what he called the many changes which impacted the banking sector this year, including\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":598782,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/09\/government-ipos-set-for-september-on-schedule\/","url_meta":{"origin":624804,"position":5},"title":"Government IPOs set for September on schedule","author":"enterpriseam admin","date":"9 June 2019","format":false,"excerpt":"EXCLUSIVE- IPOs by state-owned companies set for fall as planned, come what may: State-owned companies selected to make initial public offerings of their shares under the second phase of the state\u2019s privatization program will move forward with transactions starting in September as scheduled, Public Enterprises Minister Hisham Tawfik told Enterprise\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/4\/Egypt-state-privatization-program-IPOs.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/624804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=624804"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/624804\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/624797"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=624804"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=624804"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=624804"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=624804"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=624804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}