Gregory Hughes, Mena
IPO leader, EY, said: "The increase in
IPO activity across the Mena region during the second quarter of this year, which included two cross-border listings, is proof that companies are still keen to execute
IPOs and gain access to international investors and stock markets.
Global
IPO exchange activity continued to pick up in the seocnd quarter of 2019, with 302
IPOs raising $56.8 billion, marking an increase of 47.3 per cent in
IPO volumes compared with first quarter of 2019, despite the US-China trade tensions and uncertainties related to Brexit.
'Prior to our launch of PSE EASy, LSIs who want to avail of
IPO shares had to go to designated
IPO kiosks in select Metro Manila malls to secure and fill up a subscription form, bring this form to their broker's offices for acknowledgment, and then bring the same back again to the kiosk to make the payment - a very cumbersome process for a LSI who could only invest then a maximum of P25,000 per
IPO,' PSE president and chief executive officer Ramon S.
Stock market investors now prefer to use electronic
IPO platforms to subscribe for new initial public offers (
IPOs).
Saudi Arabia led
IPO activity in 2018 with 12
IPOs worth US$1,472.4m.
"Although the
IPO market in the region has picked up in 2017 and 2018, corporate issuers continue to look for reduced volatility in oil prices, and a stable near term outlook for secondary markets within the region, to take to the primary market," said Faisal Hasan, head of investment research at Kamco.
This study raises an issue on the investors' reaction in the immediate aftermarket when
IPOs that are issued and rise together with the "offer for sale" as part of the
IPO but the offer for sale would be used only to distribute cash to the existing shareholders.
The
IPO of Cairo for Investment & Real Estate Development Company raised $69.7m.
"As I see it, we might be delayed on the
IPO. We're still working on it, but I think we might get delayed to probably next year," Comendador said.
Compared to the second quarter of 2017, both
IPO value and activity increase year-on-year by 42.8 per cent and 12.5 per cent, respectively.