JEDDAH — Global IPO volumes in 2017 reached the highest level in a decade, according to the latest Cross-Border IPO Index by global law firm Baker McKenzie. The Middle East region also picked up with 300 percent increase in value of domestic deals and securing the first cross-border listing in the region since 2015.

Low market volatility as a result of the relatively benign geopolitical environment and improved market sentiment were behind the increase in global IPO activity, which saw both cross-border and domestic activity grow. In total, 1,694 companies raised $206.6 billion from IPOs, a jump of around a third in both value and volume on 2016.

Cross-border deals jumped by 60 percent in volume, growing in all regions, including Latin America, which saw its first cross-border listing in 10 years. Cross-border capital raising also grew in value in 2017 by 25 percent, the majority of which was accounted for by a strong performance in Europe, Middle East and Africa (EMEA) and North America. That helped offset a decline in Asia Pacific cross-border capital raising.

The UAE recorded the only cross-border listing in the Middle East region, by ADES International Holding, which raised $243.5 million on the London Stock Exchange.

“The economic activity associated with IPOs is vital for the overall development of regional capital markets, which in turn will stimulate further growth in Arab economies,” said Mazen Boustany, head of Banking & Finance at Baker McKenzie Habib Al Mulla in the UAE.

On the domestic front, IPO values were up an impressive 55 percent year on year, from $676 million to $2.1 billion in 2017, while volumes also increased by 40 percent, from four IPOs in 2016 to 12 IPOs in 2017. The number of IPOs this year compared to 2015 climbed by 22 percent, although capital raised fell by 3 percent. — SG