IPOs in the Middle East remain on track while investors monitor conflict | Einsmark news

(Bloomberg) – The increasing conflict between Israel and Iran is spraying fresh uncertainty in the Middle East’s stock markets, which has been a resilient region so far this year. Although no initial public offers have been officially delayed or drawn, the risk is now at greater risk that the trading conditions will be scarce for new transactions. The impact of a protracted conflict on the following occasions, after the summer holidays, also remains unclear. “It is unlikely that large, government -supported IPOs will continue in the short term due to increased local uncertainty,” said Akber Khan, acting CEO of Al Rayan Investment in Doha. However, smaller IPOs focused on domestic worker should not be affected much. ” The geopolitical tension can create a more chaotic background for the trade debut of Saudi Arabian low-cost truck Flynas Co., which is expected in the coming weeks. The listing, which is the largest IPO of the Middle Eastern so far this year, will test the stock markets of the region amid all the uncertainty. This has attracted more than $ 100 billion in order, indicating a strong institutional demand. The Middle East has had a good ECM activity so far this year and shook off the disruption of US rates faster than other regions. Hitesh Asarpota, CEO of Emirates NBD Capital Ltd. “Investor sentiment remains cautiously optimistic with regional markets that stabilize,” he added. The conflict broke out as several firms in Saudi Arabia progressed with their IPO plans. Specialized Medical Co. will close the retail subscription of its $ 500 million IPO this week, with a listing date still to be announced, while the gym chain operator Sport Club will reveal the ranks of its IPO on June 22. The developer Dar Al Majed Real Estate Co., Marketing Home Group Co. and the technical firm Ejada Systems Ltd. All have regulatory approval to have a list. Since hostilities between Israel and Iran show little sign of relief, there is concern about the potential for a protracted conflict. But the Middle East stock markets have been resilient over the past few years. “The recent history for MENA shares is that markets quickly realize that a spasm of fight does not affect the medium to long-term economic and earnings track,” said David Aserkoff and Inga Q Galeni, analysts of JPMorgan Chase & Co. The likelihood that military violence will last weeks, not days, is higher this time, and they believed that the risk of broader escalation is greater, the analysts said. While geopolitical tension has injected volatility in stocks, it can also provide some support to the Gulf markets through higher oil prices. Brent crude returned to about $ 75 per barrel-seen as favorable for the Golf Cooperation Board’s Oil Executive Economics-after he dropped earlier this year at the expectation of increased OPEC offer. “In the coming days and weeks, any news flow regarding a sustained shock to oil supply will be critical,” Al Rayan’s Khan said. More stories like these are available on Bloomberg.com © 2025 Bloomberg LP