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Signs of Revival in IPO Market

September 2015

Saudi Arabia’s Primary Market Most Active So Far This Year

IPO performance in the GCC region showed signs of recovery in terms of the number of offerings and total money raised in Q2 this year compared to Q1 suggesting some interest in listing ahead of the traditional quiet Holy Month of Ramadan and summer period, PwC has said.

The most active IPO market in Q2, and during the year so far, was the Kingdom of Saudi Arabia, which accounted for 75% of the total number of IPOs and 87% ($1 billion) of total money raised in Q2 2015.

A total of 4 IPOs were witnessed in the region in Q2 with total proceeds of $1.15 billion compared to 1 IPO in the previous quarter of the year raising $185.4 million.

Looking at IPO performance in 2015 year to date compared to the same period in the prior year, although there were a total of 7 IPOs in Q2 2014 compared to 4 in Q2 2015, the total value raised in Q2 2015 was 28% higher compared to the same period in the prior year, which imply improved company valuations. In terms of activity in H1 this year compared to the same period in the prior year, H1 2015 witnessed a total of 5 offerings raising total proceeds of $1.34 billion compared to a total of 9 offerings raising total proceeds of $1.85 billion in H1 2014, a 28% decrease in total proceeds raised and a 44% decrease in the number of offerings. However, the average offering value in H1 2015 was 30% higher than the average offering value in H1 2014.

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