Q2 2015 also saw the first MENA outbound IPOs
since the listing of Gulf Marine Services on the London Stock Exchange (LSE) in Q1 2014.
According to PwC, the average first day gain of the 75 IPOs
that priced during the second quarter was 17 percent, above the 10 percent first day gain for IPOs
priced in the first quarter of this year.
The number of IPO
focused funds in Mena could be on the rise with more IPOs
set to enter Mena markets in the next two years, which could bring in greater investment and IPO
Activity was spread broadly across sectors in first half 2014, with IPOs
in the healthcare, power and utilities, retail, construction, oil and gas, telecommunications, leisure and tourism and industrial manufacturing sectors.
Investors increasingly doubted the future potential and growth of IPO
firms,'' said Takashi Nishibori, chief editor at Tokyo IPO
Lower offering prices are having an impact on funds procured through IPOs
The SARS outbreak in Asia and uncertainty over the Iraq war hindered IPO
activity in the first half of last year.
Robert Walker, CFO of Agilent Technologies, the big equipment maker spun off from HewlettPackard, noted that the prime motivation for the IPO
was to allow the Agilent people to concentrate on their own businesses and objectives and not get lost in the far larger agenda of HP.
It's very encouraging when you see an IPO
come through the first day with low trading volumes,'' he said.
There are ways get past the IPO
velvet rope, however, from buying a mutual fund geared to new issues, to opening an account with an online discount broker who gets a piece of the new-issue action.
Furthermore, six months after the IPO
, the stock prices had appreciated, on average, nearly 40%.
Establishing a reasonable value for the company is the critical first step, but the investment bankers must also consider the market's receptiveness toward IPOs
in general and their new issue in particular.