The 2nd Middle East IPO Summit 2007 concluded on a positive note, after two days of intense debate examining the reasons behind the poor performance of the regions markets in 2006 and how IPOs could stabilise them. The unanimous reaction was that the solid underlying economic environment for initial public offerings (IPO) in 2007 were positive and in the medium turn would help the bourses recover.
Deep Marwaha, Conference Manager for the 2nd Middle East IPO Summit, said, “The recent Air Arabia IPO illustrates the views of experts and delegates alike. If investors have confidence in the IPO then they will be resilient, benefiting themselves, the IPO company and of course the market. Air Arabia’s IPO will now enable them to expand their fleet by 25 new aircraft, the micro and macro benefits to the economy are obvious.”
Investors are quite rightly eager for a sustained bull run on the markets, having seen a capital exodus of over US$ 460 billion last year. In the final analysis, speculation, insider-trading, transparency, disclosure and ‘amateur’ investors all contribute to suspicion and negative sentiment but these same issues will not bring the markets back into the black. Addressing excess liquidity and the lack of depth in the regional markets are the underlying issues.
Andrew Jeffreys, Editor-in-Chief, Oxford Business Group, and Conference Chairman, said, “The fact that the regional markets have fallen and investor confidence has been dented is clearly a paradox. The underlying economic fundamentals are still positive. I expect confidence to return back to the market over the next six months, although the return maybe slower than some people would have hoped for.”
Debate and discussion amongst investment experts, regulators and market leaders centred on regulatory and industry standards, corporate governance and transparency, reporting standards and internal audit, management changes and restructure. It also addressed the costs associated with IPOs and the long-term obligations of public companies as well as the critical factors underpinning oversubscriptions, over-pricing and macro-economic issues affecting IPOs.
Sami Maaz Al Khairi, Assistant VP, Amwal, a delegate at the event noted, “ME IPO Summit is an ideal platform for us to study the market and update our knowledge. This allows us to provide our clients who maybe considering going public with the right advice regarding when and how to go public.”
An impressive line-up of international and regional financial experts spoke at the event including amongst others, Henry Azzam, Chairman, Dubai International Financial Exchange, Habib Mulla, Chairman, Dubai Financial Services Authority, Zahed Chowdury, Head of Middle East Research, Deutsche Bank, Omar M. El Quqa, Executive VP – Corporate Finance & Treasury, Global Investment House.
