PHOTO
Saudi Arabia is among the top IPO markets worldwide, ignited by the offering of state oil giant Aramco in 2019 and continued by a local market wanting to invest in successful regional companies.
Speaking at the annual Future Investment Initiative (FII) summit in Riyadh, Ken Moelis, chairman and CEO, NYSE-listed investment bank Moelis and Company said the amount of liquidity for growth capital, including from family wealth transition, had led to a market which was “on fire”.
Moelis said his investment bank is active in the market, and he said it was possible to sense the positive reinforcement and the virtuous cycle.
“This is what happens when you have an exciting market, high growth, and capital that needs to go in and businesses that want the capital to grow,” he said.
Mary Callahan Edoes, CEO of asset and wealth management, at JP Morgan, said there had been a slowdown in IPOs globally, with reasons behind that including increased regulation, activist investors and ‘the quarterly obsession’, which were all encouraging businesses to stay private for longer.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
