Fall in oil prices puts Middle East IPOs on hold, report says
The fall in oil prices has led Middle Eastern companies to put their initial public offerings (IPO) on hold, according to Ernst&Young.
"In the shorter term, we could see companies sitting on IPOs," Phil Gandier, the think-tank's regional transaction advisory services leader told the Financial Times.
"Although there is a healthy pipeline of IPOs for 2015, companies are adopting a 'wait-and-see' approach until markets have settled," he continued.
In 2014, companies raised $11.5bn in IPOs, but this year investors may "continue to be guarded if the price of oil hasn't stabilized" the consultancy's Q4 2014 report on IPOs stated.
On Monday, Brent crude fell 1.25% to $49.55 per barrel, according to the ICE.
Iraqi Oil Minister Adel Abdul Mahdi said over the weekend that the country will pump a record of 4m barrels a day this year. Iraq also plans to boost crude exports to 3.3 million barrels a day, including from the Kurdish area.
In parallel, Barclays wrote in its Oil Market Outlook on Monday: "Today, producers globally are struggling to find buyers for their crude, which is reflected in the contangos in the Brent and WTI futures curves."