By: Ramy Sameeh
Abu Dhabi – Mubasher: The UAE markets are likely to see a “leap” in initial public offerings (IPOs) in 2017 due to lower oil prices on difficult economic conditions.
There are four or five companies are preparing to go public in 2017, in line with the recovery of oil prices above $50 per barrel (pb), analysts and experts told Mubasher.
Many companies including Massar Solutions, Senaat, Jannah Hotels and Resorts, Gulf Capital and Tasweek Real Estate Development are studying the possibility of listing their stocks on Abu Dhabi’s market, according to Mubasher’s data.
Al Shafar General Contracting Co., Daman Investments, Emirates District Cooling (Emicool), Al Habtoor Group, Emaar Hospitality Group, Mawarid Finance Rivoli Group and Able Logistics Group also plan to launch IPOs in Dubai’s exchange.
The UAE stock markets still need lisitng of new companies to attract liquidity, analysts told Mubasher.
The Abu Dhabi Securities Exchange (ADX) did not witness any listings last year, while the Dubai Financial Market (DFM) is awaiting the listing of Orient UNB Takaful and Kuwait's National International Holding in mid-November 2016.
Launch of IPOs is dependent on the strength of capital and market stability, according to Shailesh Dash, entrepreneur and founder of Al Masah Capital.
Markets have been backed by the new OPEC’s agreement which will lead to a rise in oil prices this year, Dash said, adding that such scenario will make local markets set a new plan regarding IPOs and financing.
Decline of oil prices in the past period had an impact on the budgets of GCC countries which depend mainly on oil revenues, Dash added.
Translated by: Julian Nabil
