(P)GCC Firms in Distress

(P)GCC Firms in Distress(P)GCC Firms in Distress

Oil price volatility, among other factors, is hurting the primary issues from companies in the (Persian) Gulf Cooperation Council, souring the mood among regional and global investors, industry participants said at a conference on Tuesday, Gulf News reported. “Oil prices and geopolitical issues in the region have been contributing to slack in IPO [initial public offering] pipeline,” said Rashed Al Mansouri, chief executive officer at Qatar Stock Exchange. “We should also not forget the cost of IPOs and the regulatory requirements.” A senior official from National Bank of Abu Dhabi agreed. “Price of oil is a matter of budgeting; government can’t readjust their budgeting and we are still at a level where we can’t sustain growth. Plus there are other factors which are driving primary market here, like the geopolitical issues,” said Majd Adnan Maaitah, the bank’s managing director at Securities and Fund Administration Services Department. “I won’t be advising my clients to come out with an IPO now ... Many of them are ready."