More IPOs expected: Experts

The new optimism for IPOs – especially on the Dubai Financial Market – comes in the wake of successful market debuts for Marka, the upmarket retail business, and Emaar Malls Group. Financial professionals expect more initial public offerings on UAE markets over the next few months, with buoyant conditions for capital markets activity extending into 2015, The National reported.
According to experts, the high spirits are a result of the success stories seen with the Emaar Malls Group and Marka.
In a recent study, Ernst & Young, the international accounting firm, said: “Expect a rush for fourth quarter returns” in global capital-raising markets, adding that “investor confidence in the Middle East is returning, driven by improving economic conditions, better liquidity and higher valuations. This is being translated into more and higher IPOs.”
There have been more IPOs in the first nine months of 2014 compared to a year earlier, E&Y said, while the amount raised has surged by 53%, to US$3.5 billion. “The most significant deal has been Emaar Malls,” the firm added.
Emaar Malls debuted successfully on the DFM last week, with its shares jumping 21% on opening before easing back to close 12% ahead at AED3.25. The parent company, Emaar Properties, has said it is also going to float its hospitality business on the DFM within months.
Meanwhile, Marka was heavily oversubscribed and leapt 59% in first-day trading.

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