DOHA: The recently implemented nearly QR3.3bn worth Mesaieed Petrochemical Holdings IPO was the largest valued offerings during the first quarter of 2014 in the Middle East, according to Thomson Reuters Deals Intelligence Middle Eastern Investment Banking Analysis on M&A activities.
In a statement, Thomson Reuters’ analysis said initial public offerings (IPO) activities in the region during the first quarter, witnessed a sharp decline of 37 percent compared to the corresponding period last year.
Nadim Najjar, Managing Director, Middle East, Africa, and Russia/CIS, said: “Middle Eastern companies raised $1bn from two IPOs during the first quarter of 2014, a 37 percent decline in IPO activity compared to $1.6bn from the same period in 2013.”
“The larger of the two IPOs was the $905m offering from Mesaieed Petrochemical Holdings, a unit of state-owned Qatar Petroleum. It was Qatar’s first IPO since 2010. Egypt’s Arabian Cement Company raised $109m in March. As sole bookrunner on the Mesaieed Petrochemical Holdings initial offering, Qatar National Bank took first place in the Q1, 2014 Middle Eastern ECM ranking,” Najjar said.
The value of announced mergers and acquisitions (M&A) transactions with any Middle Eastern involvement reached $5.7bn during the first quarter of 2014, 15 percent less than the $6.8bn witnessed during the same period last year, and marking the lowest first quarter total in the region since 2004.
Najjar said that Middle Eastern investment banking fees reached $120.3m, down 17 percent from the previous quarter and a 2 percent decline compared to the first quarter of 2013.
“Fees from completed M&A transactions totalled $46.4m, up 19 percent from the same period in 2013, and accounting for 39 percent of this year’s overall Middle Eastern fee pool. Equity capital markets underwriting fees totalled $39.6m, more than twice the amount registered during the first quarter of 2013 ($17.4m) and marking the best annual start for Equity Capital Market (ECM) fees in the Middle East since 2008. ECM fees account for 33 percent of the fee pool, the highest first quarter share since 2006,” Najjar said.
Fees from debt capital markets underwriting declined 47 percent year-on-year to $17.4m, while syndicated lending fees fell 49 percent to $16.9m.
Lazard earned the most investment banking fees in the Middle East, a total of $28.8m for a 24 percent share of the total fee pool. Lazard topped the Middle Eastern completed mergers and acquisitions fee league table, while Qatar National Bank was first in the Equity Capital Market underwriting fee rankings. JP Morgan and Samba Financial Group took the top spots in the Middle Eastern DCM and loans fee rankings, respectively.