GCC governments hope to boost stock listings

The number of listed securities in the GCC is a flaw that the local governments have been trying to correct. Hence, there is a general consensus amongst regulators that getting more companies into the public market is a “good thing.” Their end goal is creating deeper markets with more securities and better diversification, ensuring lower market volatility, decreasing valuations to more reasonable levels, and spreading the wealth generated from economic growth and privatization to the general population. Thus, GCC regulators have allowed more than $16 billion worth of IPOs to take place since 2004, and are examining the applications of an additional 90 companies. Of course, timing has been an issue, and some regulators have opted to delay some IPOs so as not to exacerbate the downward pressures already in play. However, GCC investors (both retail and institutional) are becoming more discerning. Today, the IPO story has to be solid,