The $16.8 billion (€12.2 billion) raised by initial public offerings (IPOs) in the Middle East and North Africa (MENA) region in the first quarter of the year points to an improving
environment for dealmakers in the year ahead.
Data provider Mergermarket, which produced the figure, also notes that the total amount of mergers and acquisitions (M&A) in 2013 was the highest for the region since 2007.
Speaking at an industry forum, Phil Gandier, Mena head of transaction advisory services at consultancy EY, said the M&A outlook was underpinned by improving business confidence in the region.
“This, combined with easy credit access, robust earnings expectations and a strong liquidity position is likely to encourage Mena companies to pursue acquisitions domestically as well as in developed markets throughout the course of the year,” he said.
The trend in IPOs will please asset managers and institutional investors that are looking to deploy money in the region, while the rise in M&A activity could signal opportunities for private equity firms.
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