Middle East Equity

The wave of rights issues and capital raisings in the market this summer is so far going smoothly, with good news this week for Banco Popular Español, as its shares and rights perked up in trading.

The swathe of rights issues set to form a big part of Emea equity capital markets activity this side of the summer has moved forward this week, with the conclusion of Dubai Parks and Resorts’ deal and the launch of SSAB’s prospectus.

As the $100bn-plus IPO of Saudi Aramco nears its launch, the UK’s Telegraph has most recently hinted at a three-way foreign listing, conducted across London, New York and Hong Kong. Columnist Philippe Espinasse looks at the practicalities and advantages (as well as disadvantages) for the oil behemoth of listing in Asia.

Ever since it emerged that Saudi Aramco was considering a public listing, equity capital market specialists have been trembling at the potential for the largest IPO in history. Such a deal could also transform the Saudi exchange, finally bringing a rush of foreign investment into the country’s stocks.

Equity capital market banks will love an IPO of Saudi Aramco, or parts of it, if one happens. But getting there is going to be arduous and could disrupt other business this year. The best thing for the market would be a quick and clear-cut process. Sadly, bankers say that is unlikely.

Saudi Arabia gave equity capital market bankers hungry for mega-deals something to look forward to on an otherwise bleak midwinter day of trading on Thursday, as its deputy crown prince touted the idea of a sale of Saudi Aramco shares.

Persian Gulf equity markets have so far failed to win a boost from last year’s inclusion of the United Arab Emirates and Qatar into the world’s main emerging market index, as well as the more recent opening up of the Saudi Exchange to foreign investors, market participants have said.

Equity market participants in the Persian Gulf are hoping for a quickening of activity in the final months of the year, after a disappointingly slow 2015 so far. But there is little certainty that many issuers will risk market conditions that could well remain volatile.

On June 15, and after months of anticipation, qualified foreign investors were for the first time able to directly invest on the Saudi Stock Exchange. GlobalCapital's Olivier Holmey and Jon Hay sat down with its CEO, Adel Saleh Al-Ghamdi, in London to discuss the reforms that have been introduced, and those still to come.

Saudi Arabia’s new stockmarket regime, under which qualified foreign investors can buy stocks listed on the Saudi Stock Exchange directly for the first time, began on Monday, June 15.

Emaar Misr for Development, the Egyptian property developer, on Thursday released the price range for its initial public offering in Cairo, which values the firm at the mid-point at about E£17.9bn ($2.35bn).

Oron Group Investments & Holdings, the Israeli civil engineering group, started trading on the Tel Aviv Stock Exchange on Monday, after last week completing the country's first initial public offering this year.