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DUBAI: Gulf stock exchanges are set to experience another busy year of initial public offerings in 2022, possibly surpassing this year’s bumper harvest, a Bank of America executive told Reuters.
After a year that featured three major IPOs on the ADX markets of Tadawul in Saudi Arabia and Abu Dhabi, Dubai has announced plans to list up to 10 state-owned companies.
âWe expect ADX and Tadawul to be very busy. The main difference in 2022 is that Dubai’s financial market will be busy as well, âsaid Christian Cabanne, Bank of America’s head of equity capital markets for Central and Eastern Europe, Middle East and Africa.
The plans announced by Dubai, which has not had a major IPO since a unit of state-owned developer Emaar Properties in 2017, aim to help the emirate cope with intensifying competition for capital in the region. region.
Cabanne said the success of Dubai’s IPOs will depend on factors such as how large the offerings are acceptable to the market, with price ranges deemed attractive to international and local investors.
There is still a lot of capital to deploy in the region, Cabanne said.
“Certainly between Abu Dhabi and Dubai, we expect a similar investor base (…)
The UAE announced last week that it will switch to Saturday-Sunday weekends next year instead of Friday and Saturday, which Cabanne says is a major step in bringing the UAE into line. in global markets and make it easier for international investors to trade local securities.
Introducing new products to regional equity markets this year, such as a first bond exchangeable in the United Arab Emirates or a first offering of shares in the secondary market in Saudi Arabia, will also potentially increase the number of new issues on the bonds. markets.