The profit failure threatens the appetite of the market for the proposals of Saudi Arabia and the UAE

Companies in the Middle East, which benefited from the primary public subscription wave, began paying the price of their failure to achieve ambitious profit expectations. After the region has been an active center for public subscriptions over the past few years, some newly listed companies have suffered from poor achievements when trade began, with investors rejecting the exaggerated evaluation. Anxiety now extends to the results of disappointing profits of expectations, which increase the market disorder. Lulu shares the shares of “Lulu Retil Holdings” working for the Hypermarket, which attracted sovereign funds such as the Singapore “Gic” fund in the second largest primary public subscription to the UAE for the year 2024, continued to withdraw as it was not in the first announcement of profits after it was included in February. The company has contributed more than a third of its value since the subscription after the circulation less than five months ago. Similarly, the Saudi -“Nice One Pioti Marketing”, an electronic trading enterprise, is a large part of its 30% profits on the first day of January because it did not achieve the expected goals in revenue and profits. “Obviously, the market has become more sensitive to evaluations and will punish businesses that do not achieve their expectations. Experts believe that insufficient communication with the market also affects the market moral. Although the quality of investor relations has improved during the Gulf of public subscriptions in the Middle East, there is more work to make public subscriptions in the mid -East. Casamasima, believes that the best way to handle public subscription is to establish the Department of Investors at least a year before the offer. Investment horizon has. This is a problem because you do not focus on long -term investors who want to support the business and perhaps even support support management. “Sidani from” Schroeder “added that his organization is communicating with some companies to improve their guidelines and communicate with their performance and future directions. Good models in Middle East, Samir Lakhani, general manager of the worldwide management, Which has a better ability to communicate with investors, such as “Barkan” and “Salik”, has larger trading volumes, as the market has become more familiar with its names and understands it better.