Bank of America expects a busy year of Gulf IPOs

FILE PHOTO: A general view of the Dubai Financial Market in Dubai
FILE PHOTO: A general view shows the Dubai Financial Markets after Joe Biden was elected president of the United States, in Dubai, United Arab Emirates, November 8, 2020. REUTERS/Christopher Pike

December 12, 2021

By Yousef Saba and Davide Barbuscia

DUBAI (Reuters) – Gulf exchanges are likely to have a busy year with initial public offerings (IPOs) in 2022, which could surpass this year’s bumper, a Bank of America executive told Reuters.

After a year of three major IPOs on both Abu Dhabi’s ADX and Saudi Arabia’s Tadawul, Dubai has announced plans to list 10 state-owned companies.

“We anticipate ADX and Tadawul to be very busy. The biggest difference in 2022 is that the Dubai financial market will also be busy,” said Christian Cabanne, head of equity markets for Central and Eastern Europe, Middle East and Africa at Bank of America. .

The plans announced by Dubai, which has not had a major IPO since a unit of state-linked developer Emaar Properties in 2017, are looking to help the emirate face a surge competition for capital in the region.

Cabanne said the success of IPOs in Dubai will depend on factors such as whether the size of the offerings is right for the market, with prices deemed attractive to both investors. international and local investors.

Cabanne said there is still a lot of capital to roll out in the region.

“Certainly between Abu Dhabi and Dubai, we expect a similar investment base… we expect to see some discipline in terms of not letting the same kinds of issues play out on the same timetable, ” he said.

Last week, the UAE announced it would switch to Saturday-Sunday weekends next year instead of Fridays and Saturdays, according to Cabanne, an important step to tie the UAE to global markets and help businesses It is easier for international investors to trade domestic securities.

The introduction of new products in the regional equity markets this year, such as the first exchangeable bonds in the UAE or the first secondary stock offering on the market in Saudi Arabia , will also potentially drive the number of new releases in the market.

(This story gathers to make it clear in the fourth paragraph that it is a unit of Emaar.)

(Reporting by Yousef Saba and Davide Barbuscia; Editing by David Goodman) Bank of America expects a busy year of Gulf IPOs

Bobby Allyn

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